[South Africa] Frustration over R4bn lost to government payroll's ghost employees

In South Africa, a parliamentary committee expressed its frustration over what it termed weak and incomplete presentations from government departments regarding the problem of “ghost employees” on the state’s payroll, MSN reports.

The issue is estimated to have cost the public purse nearly R4 billion.

The Portfolio Committee on Public Service and Administration reportedly put tough questions to officials from National Treasury, the Department of Public Service and Administration (DPSA), and the office of the Auditor-General. 

The committee wanted concrete answers about mechanisms allowing the continued payment of salaries to non-existent workers, with figures dating back to 2021.

The Public Servant Association’s (PSA) spokesperson, Madimetja Mautla, described the situation as “shocking” and indicative of a deep-rooted crisis in accountability.

“This problem did not start yesterday… We should blame the accounting officers in all government departments,” Mr Mautla stated. He reportedly said that the lost funds (estimated at R3.9 billion) could have been used to employ more police officers, nurses, and educators, thereby bolstering critical service delivery.

The scandal seems to be more sophisticated than simple administrative errors, with concerns expressed that the fraud extends to the Government Employees Pension Fund (GEPF), suggesting an organised scheme. Mr Mautla linked this to a new government early retirement program and expressed concern that it could create another channel for unscrupulous activities.

“It is theft,” Mr Mautla said. “It is a deep-rooted problem that has to be rooted out, and it is all due to the lack of systems and lack of controls in government generally.”

To rectify the issue, Mr Mautla reportedly proposed practical solutions, including stringent physical verification of employees, the use of biometric systems, and more robust action by internal auditors. He gave examples of other African nations, such as Nigeria, Tanzania, and Kenya, where these measures have been successfully implemented to clean up payrolls.

Parliament must now ensure accountability. The committee demanded that the DPSA return with more tangible information and a clear plan of action, while Mr Mautla called for political will to ensure accounting officers are held personally responsible.

“It remains to be seen if indeed parliament will hold the relevant individuals or the accounting officers accountable for this,” Mr Mautla said. 

Source: MSN

(Quotes via original reporting)

In South Africa, a parliamentary committee expressed its frustration over what it termed weak and incomplete presentations from government departments regarding the problem of “ghost employees” on the state’s payroll, MSN reports.

The issue is estimated to have cost the public purse nearly R4 billion.

The Portfolio Committee on Public Service and Administration reportedly put tough questions to officials from National Treasury, the Department of Public Service and Administration (DPSA), and the office of the Auditor-General. 

The committee wanted concrete answers about mechanisms allowing the continued payment of salaries to non-existent workers, with figures dating back to 2021.

The Public Servant Association’s (PSA) spokesperson, Madimetja Mautla, described the situation as “shocking” and indicative of a deep-rooted crisis in accountability.

“This problem did not start yesterday… We should blame the accounting officers in all government departments,” Mr Mautla stated. He reportedly said that the lost funds (estimated at R3.9 billion) could have been used to employ more police officers, nurses, and educators, thereby bolstering critical service delivery.

The scandal seems to be more sophisticated than simple administrative errors, with concerns expressed that the fraud extends to the Government Employees Pension Fund (GEPF), suggesting an organised scheme. Mr Mautla linked this to a new government early retirement program and expressed concern that it could create another channel for unscrupulous activities.

“It is theft,” Mr Mautla said. “It is a deep-rooted problem that has to be rooted out, and it is all due to the lack of systems and lack of controls in government generally.”

To rectify the issue, Mr Mautla reportedly proposed practical solutions, including stringent physical verification of employees, the use of biometric systems, and more robust action by internal auditors. He gave examples of other African nations, such as Nigeria, Tanzania, and Kenya, where these measures have been successfully implemented to clean up payrolls.

Parliament must now ensure accountability. The committee demanded that the DPSA return with more tangible information and a clear plan of action, while Mr Mautla called for political will to ensure accounting officers are held personally responsible.

“It remains to be seen if indeed parliament will hold the relevant individuals or the accounting officers accountable for this,” Mr Mautla said. 

Source: MSN

(Quotes via original reporting)