POLITICS

Public servants not being axed for financial misconduct - Anton Alberts

FF+ MP says govt has not learnt its lesson with cadre deployment

GOVERNMENT IS ENCOURAGING PUBLIC SERVICE CORRUPTION WITH CADRE DEPLOYMENT

 "The government is not doing enough to recover funds which have been stolen by public servants. Only 21,8% of public servants who had been found guilty of financial misconduct in the 2009/2010 financial year have paid the funds back to government and only 19% have been dismissed from the public service. These figures indicate that the state is taking insufficient steps to prevent corruption in the public service," adv. Anton Alberts, die parliamentary spokesperson on Public Service and Administration for the Freedom Front Plus said in reaction to a reply to his question he put to the Minister of Public Service and Administration in Parliament.

Corruption is endemic in South Africa and it is the constitutional duty of government to see to it that taxpayer's money is not wasted. Government has only recovered R 325 171-82 of the more than R 265 million which have been lost due to financial mismanagement by public servants.

"Given the extent of the fraud, the amount which has been recovered is extremely small. The main reason for this is that the sanctions instituted by the state against transgressors are too light and ineffective to prevent fraud and theft. Only 19% of guilty public servants have been fired while the rest have been left in their jobs and still have the opportunity to steal money from the state again. If the government is not going to institute stricter sanctions against those public servants who are found guilty of financial mismanagement, the actions of the public servants won't change," is the opinion of Adv. Alberts.

"It appears as if government has still not learnt its lesson with cadre-deployment. Ineffective and corrupt people are being deployed in the public service merely because they have the correct political credentials. It is time government realizes that only merit-based appointments will ensure that the public service functions properly on a national, provincial and local government level and service delivery is restored," Adv. Alberts added.

NATIONAL ASSEMBLY

QUESTION FOR WRITTEN REPLY

QUESTION NO.: 283

DATE OF PUBLICATION: 24 FEBRUARY 2012

Adv A de W Alberts (FF Plus) to ask the Minister for the Public Service and Administration:†

(1) How many persons who are repaying funds have been found guilty of (a) misconduct and (b) fraud;

(2) whether all persons repaying funds have been dismissed; if not, (a) how many in (i) total and (ii) each department have not been dismissed, (b) what punishment was meted out to persons who repaid funds and (c) why, in each case, were these persons not dismissed;

(3) in which departments were the persons who repaid funds employed at the time of the fraud and misconduct;

(4) whether the funds were repaid to the National Treasury or to each separate department in which the person was employed;

(5) whether the total amounts that went missing through fraud and misconduct have been repaid; if not, (a) what total amount was lost in each department and (b) why can this money not be recovered?       NW361E

REPLY

(1) In terms of section 85(1) of the Public Finance Management Act (PFMA), 1999, read with Chapter 4 of the Treasury Regulations[1], all departments must, as soon as the disciplinary proceedings in cases of financial misconduct are finalised, report to the Public Service Commission (PSC) on the outcome of the cases. The PSC's reporting format provides for reporting on the cost of financial misconduct and the amount recovered at the time departments reported on the outcome of cases to the PSC.

In respect of the 2009/10 financial year, a total number of 1135 finalised financial misconduct cases were reported by both national and provincial departments. Of the 1035 financial misconduct cases, employees were found guilty in 998 cases. At the time of reporting to the PSC, 218 of these employees were in the process of repaying monies and in 106 cases there were no loss to the State.

(2) According to the report on Financial Misconduct for the 2009/10 financial year, of the 998 employees found guilty of financial misconduct, 214 (19%) employees were discharged from the Public Service.

(a) Final written warnings were issued in 489 (43%) cases, and this was the most prevalent sanction imposed upon those found guilty. In respect of the remaining employees (295) the following sanctions were imposed:

SANCTION

NO OF EMPLOYEES

Combination of sanctions

117

Counseling

6

Demotion

4

Fine

18

Imprisonment

2

Not indicated

3

Suspended dismissal

8

Suspension without pay

47

Verbal warning

12

Written warning

78

(b) The Disciplinary Code and Procedures for the Public Service serves as a mechanism of deterrence, that is to correct employees' behaviour and is intended to prevent any other employee from engaging in similar actions. In deciding on a suitable sanction, the merits of each case and mitigating and aggravating circumstances are considered by the chairperson of the enquiry in terms of the principles of fair and sound labour relations. The merits of each case are not reported to the PSC.

(3) Please refer to Appendix A and B for detailed information.

(4) In terms of section 38(c)(i) of the PFMA read in conjunction with Treasury Regulation Part 5, paragraph 12.5.1 the accounting officer of each department is required to take effective steps to collect all money due to the department.

(5) (a) Please refer to Appendix A and B for amounts not recovered and those that were recovered.

(b) The recovery of money owing to the state is a continuous process and at the time of reporting to the PSC, the respective departments were in the process of recovering the money owed. Furthermore, in some cases, there has been no physical loss of funds to the state and thus the recovery was not necessary.An example of a case in this regard is whereby the stolen item was subsequently recovered. For a breakdown of the amount physically recovered, amount considered as recovered due to "no loss to state", and the amount recovered, please see Appendices A and B attached.

Appendix A - Cost of financial misconduct reported at national level

DEPARTMENT

AMOUNT

AMOUNT PHYSICALLY RECOVERED

AMOUNT CONSIDERED AS RECOVERED DUE TO "NO LOSS TO STATE"

AMOUNT NOT RECOVERED

Agriculture, Forestry and Fisheries

R 482 857.51

R 0.00

R 0.00

R 482 857.51

Arts and Culture

R 131 886 616.60

R 6 133.20

R 250 000.00

R 131 630 483.40

Communications

R 3 832 234.91

R 0.00

R 0.00

R 3 832 234.91

Cooperative Governance and Traditional Affairs

R 2 133 388.56

R 0.00

R 2 050 561.66

R 82 826.90

Correctional Services

R 1 396 522.34

R 1 945.70

R 578 149.54

R 816 427.10

Defence and Military Veterans

R 291 621.51

R 63 531.23

R 5 000.00

R 223 090.28

DoJCD

R 2 191 935.32

R 189 685.99

R 8 710.00

R 1 993 539.33

Energy

R 91 803 000.00

R 0.00

R 0.00

R 91 803 000.00

GCIS

R 350.00

R 350.00

R 0.00

R 0.00

Health

R 16 752.76

R 0.00

R 850.00

R 15 902.76

Home Affairs

R 49 574.74

R 13 680.00

R 15 902.74

R 19 992.00

Human Settlements

R 0.00

R 0.00

R 0.00

R 0.00

ICD

R 62 091.51

R 439.16

R 48 504.47

R 13 147.88

International Relations and Cooperation

R 49 600.87

R 0.00

R 0.00

R 49 600.87

Labour

R 1 114 424.62

R 5 187.64

R 31 700.00

R1 077 536.98

Mineral Resources

R 6 059 000.00

R 0.00

R 21 000.00

R 6 038 000.00

National Prosecuting Authority

R 49 482.57

R 0.00

R 0.00

R 49 482.57

National Treasury

R 39 186.63

R 0.00

R 0.00

R 39 186.63

Public Works

R 2 579.62

R 0.00

R 0.00

R 2 579.62

Rural Development and Land Reform

R 24 989.53

R 16 006.53

R0.00

R 8 983.00

SAPS

R 702 735.99

R 142.37

R 207.44

R 702 386.18

Sport and Recreation SA

R 17 469.62

R 0.00

R 0.00

R 17 469.62

Statistics SA

R 4 890.84

R 0.00

R 0.00

R 4 890.84

Trade and Industry

R 113 516.73

R 0.00

R 0.00

R 113 516.73

Transport

R 23 000 000.00

R 0.00

R 0.00

R 23 000 000.00

Water Affairs

R 30 648.85

R 28 070.00

0.00

R 2 578.85

TOTAL

R 265 355 471.63

R 325 171.82

R 3 010 585.85

R 262 019 713.96

Appendix B - Breakdown of financial misconduct cases reported by departments in provinces

Province

Department

Amount

Amount Physically recovered

Amount considered as recovered due to "no loss to state"

Amount not recovered

Eastern Cape

Agriculture and Rural Development

R 4 566.00

R 0.00

R 0.00

R 4566.00

Economic Affairs, Environment and Tourism

R 19 840.78

R 0.00

R 0.00

R 19840.78

Education

R 29 128.10

R 0.00

R 0.00

R 29 128.10

Health

R 34 360 907.42

R 0.00

R 34 360 907.42

R 0.00

Human Settlement

R 0.00

R 0.00

R 0.00

R 0.00

Roads and Public Works

R 32 995.10

R 0.00

R 800.00

R 32 195.10

Social Development

R 565 111.61

R 493 111.61

R 0.00

R 72 000.00

Sport, Recreation, Arts and Culture

R 19 399.00

R 0.00

R 0.00

R 19 399.00

Eastern Cape Total

R 35 031 948.01

R 493 111.61

R 34 361 707.42

R 177 128.98

Free State

Cooperative Governance and Traditional Affairs

R 16 180.00

R 3 000.00

R 0.00

R 13 180.00

Economic Dev, Tourism and Environmental Affairs

R 1 163.00

R 1 163.00

R 0.00

R 0.00

Education

R 33 780.00

R 0.00

R 0.00

R 33 780.00

Health

R 1 685.13

R 0.00

R 0.00

R 1 685.13

Police, Roads and Transport

R 89 311.60

R 0.00

R 0.00

R 89 311.60

Public Works and Rural Development

R 831 045.00

R 0.00

R 0.00

R 831 045.00

Sport, Arts, Culture and Recreation

R 60.00

R 0.00

R 0.00

R 60.00

Free State Total

R 973 224.73

R 4 163.00

R 0.00

R 969 061.73

Gauteng

Education

R 1 962 540.70

R 54 257.99

R1 816 892.00

R 91 390.71

Finance

R 243 909.16

R 295.96

R 0.00 

R 243 613.20

Health and Social Development

R 32 066.36

R13 955.95

R 0.00

R 18 110.41

Local Government and Housing

R 405 000.00

R 0.00

R 0.00

R 405 000.00

Roads and Transport

R 37 420.00

R 0.00

R 0.00

R 37 420.00

Sports, Arts, Culture and Recreation

R 30 000.00

R 0.00

R 0.00

R 30 000.00

Gauteng Total

R 2 710 936.22

R 68 509.90

R 1 816 892.00

R 825 534.32

KZN

Agriculture, Environmental Affairs and Rural Dev

R 81 460.00

R 53 500.00

R 0.00 

R 27 960.00

Arts and Culture

R 12 436.80

R 12 436.80

R 0.00

R 0.00

Co-operative Governance and Traditional Affairs

R 158 256.89

R 11 241.33

R 0.00

R 147 015.56

Education

R 16 105 815.02

R 754 684.49

R 0.00

R 15 351 130.53

Health

R 1 126 545.35

R 46 619.13

R 0.00

R 1 079 926.22

Social Development

R 112 857.21

R 644.22

R 0.00

R 112 212.99

Transport

R 38 000.00

R 0.00

R 0.00

R 38 000.00

KZN Total

R 17 635 371.27

R 879 125.97

R 0.00

R 16 756 245.30

Limpopo

Economic Development, Environment and Tourism

R 180 430.82

R 0.00

R 0.00

R 180 430.82

Education

R 443 297.00

R 63 370.00

R 0.00

R 379 927.00

Health and Social Development

R 582 934.30

R 0.00

R 0.00

R 582 934.30

Local Government and Housing

R 251 626.44

R 0.00

R 0.00

R 251 626.44

Office of the Premier

R 130671.26

R 20 940.61

R 0.00

R 109 730.65

Provincial Treasury

R 9 450.00

R 0.00

R 9 450.00

R 0.00

Public Works

R 17 250.00

R 0.00

R 0.00

R 17 250.00

Roads and Transport

R 50 881.74

R 0.00

R 0.00

R 50 881.74

Limpopo Total

R1 666 541.56

R 84 310.61

R 9 450.00

R 1 572 780.95

Mpumalanga

Agriculture , Rural Dev and Land Administration

R 8 928 635.06

R 3 120 042.96

R 0.00

R 5 808 592.10

Culture, Sport and Recreation

R 55 000.00

R 0.00

R 0.00

R 55 000.00

Economic Development, Environment and Tourism

R6 051 995.00

R 0.00

R 0.00

R 6 051 995.00

Finance

R 0.00

R 0.00

R 0.00

R 0.00

Health

R 883 283.24

R 0.00

R 0.00

R 883 283.24

Human Settlements

R 68 641.61

R 15 992.00

R 0.00

R 52 649.61

Office of the Premier

R 3 905.00

R 3 905.00

R 0.00

R 0.00

Safety, Security and Liaison

R 315.92

R 315.92

R 0.00

R 0.00

Mpumalanga Total

R 15 991 775.83

R 3 140 255.88

R 0.00

R 12 851 519.95

North West

Education

R 178 260.00

R 25 260.00

R 0.00

R 153 000.00

Health

R 104 401.08

R 897.00

R 0.00

R 103 504.08

Office of the Premier

R 1 530.00

R 1 530.00

R 0.00

R 0.00

Provincial Treasury

R 480.00

R 480.00

R 0.00

R 0.00

Public Safety

R 0.00

R 0.00

R 0.00

R 0.00

Public Works, Roads and Transport

R 4 700.00

R 0.00

R 0.00

R 4 700.00

Social Development

R 0.00

R 0.00

R 0.00

R 0.00

Sports, Arts, and Culture

R 4 500.00

R 0.00

R 0.00

R 4 500.00

North West Total

R 293 871.08

R 28 167.00

R 0.00

R 265 704.08

Northern Cape 

Agriculture and Land Reform

R 21 933.79

R 21 933.79

R 0.00

R 0.00

Cooperative Gov, Human Settlement and Trad Affairs

R 1 000.00

R 0.00

R 0.00

R 1 000.00

Economic Development and Tourism

R 8 720.00

R 0.00

R 0.00

R 8 720.00

Education

R 207 168.72

R 0.00

R 3 000.00

R 204 168.72

Health

R 318 000.00

R 0.00

R 0.00

R 318000.00

Office of the Premier

R 0.00

R 0.00

R 0.00

R 0.00

Roads and Public Works

R 6 000.00

R 6 000.00

R 0.00

R 0.00

Social Service and Population Development

R 6 122.10

R 6 122.10

R 0.00

R 0.00

Transport, Safety and Liaison

R 130 249.69

R 4 000.00

R 0.00

R 126 249.69

Northern Cape Total

R 699 194.30

R 38 055.89

R 3 000.00

R 658 138.41

Western Cape

Agriculture

R 14 890.62

R 14 890.62

R 0.00

R 0.00

Community Safety

R 266 355.79

R 0.00

R 0.00

R 266 355.79

Cultural Affairs and Sport

R 61 103.28

R 6 260.28

R 0.00

R 54 843.00

Education

R 5 362 022.64

R 13 580.00

R 0.00

R 5 348 442.64

Environmental Affairs and Developmental Planning

R 2 166.29

R 2 166.29

R 0.00

R 0.00

Health

R 313 776.44

R 62 714.44

R 0.00

R 251 062.00

Local Government and Housing

R 105 359.00

R 0.00

R 0.00

R 105 359.00

Office of the Premier

R 5 540.00

R 5 540.00

R 0.00

R 0.00

Provincial Treasury

R 2 640.69

R 2 640.69

R 0.00

R 0.00

Social Development

R 22 360.00

R 13 730.00

R 0.00

R 8 630.00

Transport and Public Works

R 15 120.01

R 0.00

R 0.00

R 15 120.01

Western Cape Total

R 6 171 334.76

R 121 522.32

R 0.00

R 6 049 812.44

Grand Total

R 81 174 197.76

R 4 857 222.18

R 36 191 049.42

R 40 125 926.16

Footnote:


[1] Republic of South Africa. Treasury Regulations, 2002 published in Government Gazette No 23463 dated 25 May 2002

Statement issued by Adv. Anton Alberts, FF Plus Parliamentary spokesperson: Public Service and Administration, July 23 2012

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