THE Nala local municipality has been defrauded of R705423 by its employees in a salary scam, a KPMG forensic probe conducted between 2008 and 2009 has revealed.
It is alleged that every month some employees pocketed money which was intended to pay temporary workers.
According to the report, some employees were not paid, others were paid more than their normal salaries, while others were paid less.
In some instances, some employees were paid double.
In a supply chain management violation, the municipality had identified "trusted" employees into whose bank accounts payments were made - in cash - for temporary workers.
Payments totalling R705423.85 were made in this questionable manner. Police are investigating.