A news service in Bougainville says the region's government payroll has about 600 fake names on it.
New Dawn FM quotes the Autonomous Bougainville Government's Minister for Public Service, Robert Sawa, saying his officials with help from the Papua New Guinea Department of Personal Management and Administrative Services, had audited and overhauled the ABG public service payroll.
He said the ghost names cost the government about $US209,000 every payday or more than $US3.58 million each year.
The minister said the payroll had been adjusted to ensure that only those who are employed drew a salary.
That means only 570 people are now on the payroll
Mr Sawa said he was committed to eradicating corruption from the ABG public service and will do everything in his power to ensure those responsible for this mass fraud are held to account.