DPWI Unveils Massive Cyber-Crime Involving R300 Million Theft Over 10 Years

The latest cyber-attack, which occurred in May 2024, saw attackers absconding with an additional R24 million, prompting a comprehensive forensic investigation.

In a move towards transparency, the Department of Public Works and Infrastructure (DPWI) Minister Dean Macpherson has disclosed a significant cyber-crime incident that has led to the theft of R300 million over the past decade. The latest cyber-attack, which occurred in May 2024, saw attackers absconding with an additional R24 million, prompting a comprehensive forensic investigation.

This investigation, spearheaded by the Hawks, South African Police Services, State Security Agency, and ICT and cyber security experts, was triggered by detailed assessments and briefings within the department. Minister Macpherson, alongside Deputy Minister Sihle Zikalala, revealed that the DPWI has been an easy target for cyber criminals over the past 10 years.

Minister Macpherson expressed concern over the possibility of collusion between internal officials and external criminals. "It is clear that we need better financial controls, which I have emphasized to the department as a matter of urgency," he stated. He pledged to crack down on these syndicates and any colluding individuals, aiming to halt the unchecked looting of departmental funds that should be used for infrastructure improvements.

The investigation has led to the suspension of four DPWI officials, including three senior managers and one middle manager, and the seizure of 30 laptops. These actions have temporarily shut down the department's payment systems, causing delays in creditor payments. The cyber-security vulnerabilities were identified with the help of banking partners such as ABSA and the South African Reserve Bank.

The ongoing investigation covers several critical areas:

Causes of the breach and vulnerabilities

Susceptibility of the department’s ICT infrastructure to cyber-crime

Lack of staff capacity and weak ICT systems

Minister Macpherson has called for a swift conclusion to the investigation, stressing the importance of accountability and the recovery of stolen funds. He also acknowledged the initial investigation efforts by Deputy Minister Zikalala.

“We need answers as to what happened under their watch. We also ask the investigators to trace and follow the money and ensure that it is brought back to the coffers of government,” Macpherson said.

The Minister is committed to reinforcing the department’s cyber security systems to prevent similar incidents in the future.