The Public Service Commission (PSC) has revealed in a report that was tabled yesterday that the cost of financial misconduct in the public service increased by 78% in just one year, from R21.7 million in 2007/08 to over R100 million in 2008/09. Yet the amount recovered from the offenders amounted to a meager R9.9 million. While 86% of the cases resulted in "guilty" charges, only 11% of offenders were discharged for their actions while most just received "written warnings".

In other words, only one in ten public servants found guilty of misconduct have been relieved of their duties. Nine in every ten found guilty of financial misconduct remain in the public service. This, then, surely gets to the heart of why there remain so many serious points of breakdown in South Africa's public service - a complete breakdown in holding officials to account.

Considering that the 2008/09 financial year saw the highest number in at least 8 years, the government needs to take more serious actions to stop the rot. Public service officials need to punish offenders in a manner that deters others from abusing state funds and resources. We need a clean and efficient public service so that South Africans can benefit from the service delivery promises made by the government.

The PSC's "Overview on Financial Misconduct for the 2008/2009 Financial Year" makes for disturbing reading, especially given the importance of a clean and efficient public service. Of the staggering 1204 cases reported, fraud (53%) and theft (15%) made up the majority of cases while corruption, financial mismanagement, misappropriation and abuse, and gross negligence made up the rest.

At the national level, the Department of Justice and Constitutional Development (DoJCD) were the worst offenders, reporting 121 of the 260 national cases and costing the state R31 million. Only R500,000 was ever recovered. At the provincial level, of the 944 cases reported, KwaZulu-Natal beat Limpopo for the dubious distinction as having the most cases, while Mpumalanga tallied the highest costs of misconduct, at R18.9 million (62% of the provincial totals).

Worryingly, the number of Senior Management Service (SMS) members who were reported for financial misconduct doubled from 2007/08 to 2008/09 from 21 to 40. Lower-salaried public servants had an average of 0.5% financial misconduct cases, but SMS members had 5 times that, at 2.5%. As the PSC stated, "this creates the perception that SMS members show a greater propensity to commit financial misconduct." This is a major problem. These SMS members are supposed to oversee vast staffs and hold them to account. This is impossible if they themselves are up to illegal activities. Moreover, they are unlikely to fulfil their service delivery mandates, as this requires a full and proper use of state funds.

The key figures from this report are as follows:

• Reported cases of financial misconduct: 868 (2007/08) up to 1204 (2008/09)

• Cost of financial misconduct: R21.7 million (2007/08) up to R100.1 million (2008/09)

• Amount recovered (%): 42% (2007/08) down to 13% (2008/09)

• Discharge of offenders: 23% (2007/08) down to 11% (2008/09)

• SMS offenders: 21 (2007/08) up to 40 (2008/09)

The Democratic Alliance (DA) applauds the PSC for exposing financial misconduct in the public service. And we praise the whistleblowers and workers who bravely report instances of fraud, theft and corruption in state offices. But we call on the government to now take action and rid the public services of fraudsters who steal the people's money and deprive us of efficient services. We suggest starting at the top, with the Senior Managers who set the example for their subordinates. Removing such offenders will open the way for a cleaner government and deter other public servants from abusing state funds.

Statement issued by Anchen Dreyer, MP, Democratic Alliance Shadow Minister of Public Service and Administration, September 23 2010

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