Crooked civil servants netted
Publish date: 10 July 2008
Issue Number: 121
Diary: Legalbrief Forensic
Category: crime
More than 1 000 public service officials were charged with financial mismanagement in the 2006/7 financial year. This was a 35% increase on the previous year's 771 cases.
According to a Public Service and Administration (PSA) Department report, says Moneyweb, of the 1 042 cases of financial misconduct reported, 370 occurred in national departments and 672 at provincial level. Nearly 60% of the cases reported involved fraud and theft amounted to 13%. Financial mismanagement occurred at all levels of seniority. Men were involved in 35% of these cases and women 55%. No gender information was available for the balance of 10%. Of the cases, 83% were found guilty, the highest proportion of the past five years. Final written warnings to 36% of the guilty parties were the main sanction. Only 158 or 18% of public servants guilty of mismanagement were fired. The Public Service Commission (PSC), which oversees the public service, reports that the cost of financial mismanagement last year was R130.6m. The biggest case was R16m in the Department of Agriculture and R60m in the Department of Roads and Public Transport.
Full Moneyweb report
Department of Public Service report
Land Affairs is one of the departments that is struggling to stem fraud. Land Affairs Minister Lulama Xingwana, responding in Parliament to a question from the DA, has confirmed that two officials of the department had received full pay during the past three years while they have been suspended, says an I-Net Bridge report. One of the land affairs officials has been sitting at home drawing his full salary for 41 months. The Minister gave no indication of what offences the officials were facing, but she did say that one of them was a member of the department's senior management.
Full I-Net Bridge report
In KwaZulu-Natal, an official in the Agriculture Department has been charged with willful and negligent mismanagement of state finances for allegedly approving and signing for R87 000 payments for the funeral services for the son of Professor Gabriel Ndabandaba, the department's former MEC, who is now the Deputy Speaker in the KZN Legislature, says The Witness. Raj Singh, deputy manager for communications in the department, is to face an internal disciplinary hearing this week for causing financial loss to the state. Ndabandaba denied that he instructed the department to pay for his son's funeral.
=10016 style=original popup]Full report in The Witness
An East London businessman has admitted to the Daily Dispatch that he allegedly defrauded the Eastern Cape Government of hundreds of thousands of rands. The report says Charles Kholeni, owner of Sahlangana Trainers and Agricultural Mentors, said he acquired a R474 000 tender from the Department of Social Development under false pretence as he had used a farming co-operative to secure the lucrative contract. Members of Ulutho Lwangomso Farmers Trading's co-operative approached the Dispatch for help after the money was deposited into their account by the department. The admission by Kholeni, who works with 30 co-operatives through the Eastern Cape, follows the suspension of a senior Department of Social Development manager as authorities probe the disappearance of R21m of taxpayers' money that was intended for poverty alleviation projects.
Full Daily Dispatch report
Wandile Ncapayi - a director for community development in Bhisho - has been suspended on charges of mismanagement and financial irregularities relating to community projects he presided over. Social Development's head of department, Denver Webb, said Ncapayi was suspended following internal investigations into allegations of corruption and fraud, notes the Daily Dispatch. He said Ncapayi had been charged on 23 counts, some around the mismanagement of R11.5m relating to women and youth community projects, monies meant for procuring goods and services and training and monitoring. He was also being investigated for an additional R9m meant for other community projects which was still unaccounted for. Ncapayi refused to comment on the allegations.
Full Daily Dispatch report
Also in the Eastern Cape, 45 civil servants have been found guilty of defrauding the provincial government of more than R500 000. The officials include 12 members of SAPS from Queenstown and surrounding areas, says the Daily Dispatch. Others are teachers, nurses and municipal employees. They were convicted of crimes ranging from applying for or buying low cost houses to earning salaries from two different government departments. Some faced charges of applying for government social grants, though employed by the government. Police spokesperson Thozama Solani said they were all given fines and instructed to pay back the money within six months. Their fines range from R1 000 to R10 000.
Full Daily Dispatch report
A scandal has been uncovered at a KwaZulu-Natal hospital in which hospital staff changed the records and blood samples of at least 20 patients to allow them to fraudulently receive a social grant on the basis of being HIV positive. An admissions supervisor and a laboratory assistant at Stanger Provincial Hospital, who allegedly rigged the blood samples and put false information on hospital cards, have been dismissed after the social grant scam was exposed, says The Sunday Independent. The dismissals took place in April. One of the staff members has appealed against the decision. Management at the hospital believes that it is possible that more cases in the grant scam could emerge.
Full report in The Sunday Independent (subscription needed)
The Department of Home Affairs hopes its characteristic qualified audit reports will end when it completes its turnaround programme over the next five years. Of the 55 projects that make up the restructuring, some focus on the department's finances, to improve controls and boost revenue, notes Business Day. The turnaround project would have automated cash-handling devices to minimise person-to-money contact, manager Jacob Mamabolo said. His comments came after a panel of local and international consultants reviewing the project's first year concluded that the project was on track. About R800m was earmarked for the project over three years, beginning last year.
Full Business Day report