Little economic relief for unemployed residents while cost of financial misconduct in Gauteng Govt at R4.6m during 2020/21 financial year

Issued by Adriana Randall MPL – DA Gauteng Shadow MEC for Finance and e-Government
30 Nov 2021 in Press Statements

While residents continue suffering the consequences of forced unemployment due to the national government’s failed Covid-19 lockdown, It comes as no surprise that the Gauteng Provincial Government (GPG) has had a high number of disciplinary hearings due to financial misconduct. 56 cases of financial misconduct, at a cost of R4 627 440-52, were reported during the 2020/21 financial year, as revealed in the State of Public Service in Gauteng report that was presented to the Gauteng Provincial Legislature.

Departments listed are:

• COGTA- 5

• Community Safety- 1

• Education- 4

• e-Government- 1

• Health- 42

• Office of the Premier- 2

• Sports, Arts, Culture and Recreation- 1

The Democratic Alliance ascribes this re-occurrence of financial misconduct purely to the lack of effective consequence management and has been warning departments year after year during discussions of annual reports that the situation will worsen as long as consequence management is only words on paper without any action. A long list of applicable legislation exists to assist in the curbing of financial misconduct but again as long as the political will is missing, no progress will be recorded.

What is even more concerning is that no criminal action has been taken against any of the officials found guilty of financial misconduct.

According to the report, 56% of the officials found guilty were given a final written warning, while 16% were dismissed and the other 16% were given both a final written warning and summarily dismissed.

The 2020/21 financial year has recorded the highest value not recovered by departments since the 2016/17 financial year, totalling R3,019 879.44.

This money was flushed down the drain, while some of these officials remains in public service where they can continue to defraud the State and waste taxpayers’ money.

To add further added insult to injury we have noted that the department of Infrastructure Development appointed consultants to assist with investigations into allegations of financial misconduct. This means that more money is now being spent on consultants, with less funds available to improve the lives of residents.

The costs for employees currently suspended with pay due to pending disciplinary cases for the 2021/22 financial year are as follows:

• Community Safety- R174 156,50

• Sports, Arts, Culture and Recreation- R1 959 522,52

• Social Development- R25 451,80

• Roads and Transport- R1 632 280,47

• Education – R2 153 956,41 with one employee on suspension for 683 days thus far

The only way in which officials can be deterred from such behaviour is if consequence management takes place which will prevent them from working in the public service again and if their names are added to a registry of public servants found guilty of financial misconduct. Even when people resign, this does not mean the disciplinary action now needs to fall away – consequences must still follow. In addition to this, their pension fund payments can be attached and is one of several options available to effectively recover the bulk of the money lost due to financial misconduct.

Financial misconduct is serious and should be dealt with in an appropriate manner as this is the only way in which corruption can be rooted out and that our taxpayers’ money is spent in the correct and most cost-effective manner that will ensure service delivery for all, and it is the only way that will put us on a path towards sustainable and inclusive development.