Ghost staff cost province R1.3m a month

EASTERN Cape taxpayers paid more than R1.3-million each month for close to 200 ghost employees of the Health Department.

The fraud was uncovered when the department conducted a physical head count verification of all the employees on its payroll system.

This was revealed by Health MEC Dr Pumza Dyantyi during a health portfolio committee meeting at the Bhisho legislature this week.

Dyantyi said fraud and corruption were of critical concern in her department.

They undermined the work of the provincial government.

During the verification process, 196 employees could not be accounted for although they had drawn salaries monthly.

"During the 2013-14 financial year we undertook this exercise, resulting in 196 alleged employees having their salaries frozen due to their failure to show up for verification.

"I am pleased to report to this committee that through our fraud prevention strategy the department is beginning to make inroads [against] fraud and corruption."

Through the exercise, the department has saved R1.3-million a month.

However committee chairman Mxolisi Dimaza (ANC) was not impressed, saying the department needed to address gaps in its systems to defeat the scourge of corruption.

"Can we please be told where are the gaps in your system which allow such things to happen?

"It is clear there are certain gaps in your human resources system that are allowing the escalation of such corrupt practices.

"Every year we are told by the department of various investigations and audits done, including head counts of employees, but you see these things continue to happen year in, year out," Dimaza said.

The department also revealed that in the financial year in question it had dealt with 17 disciplinary cases involving employees who had allegedly stolen medication, food, a doctor's laptop and money from a hospital safe.

According to the annual report discussed during Tuesday's meeting, the department viewed the war on corrupt activities as gaining momentum and intensifying.

"The department has worked closely with forensic service providers and has been assisted by the national Treasury, the Special Investigative Unit, NPA, SARS and the Hawks," the annual report says.

"The focus of this team was to identify weaknesses within our systems, particularly in supply chain management." - Asanda Nini