The Labour Department has suspended three officials based in Mpumalanga for allegedly claiming death benefits not belonging to them.
The officials, based in Witbank, fraudulently claimed benefits on behalf of dead people under the pretence that they were the rightful beneficiaries.
Department spokesman Kgomotso Sebetso said the amounts involved ranged from R300000 to R500000.
The money was allegedly deposited into bank accounts created by the officials.
"We have referred the matter to the commercial crime unit in Middelburg while we are also conducting our own investigations," said Sebetso.
He said the stolen money was part of the Unemployment Insurance Fund and that his department was looking at ways of recovering it.
He said the three had been suspended pending the outcome of the investigations.