9 March 2006
The provincial government would like to put it on record that Operation Head
Count has succeeded in identifying all institutional deficiencies in terms of
systems and processes that required immediate redress. To put the exercise in
its proper context, it was intended to not only uncover fraud and simply allow
government to institute civil claims against ghost workers, but also to close
the administrative gaps that opened the system for abuse.
For the reasons above we are not just pressing both civil and criminal
charges against perpetrators of these misdemeanours but we are also instituting
disciplinary actions against supervisors who have failed to carry out their
duties diligently and expeditiously to avoid mistakes, negligence and
non-compliance to official policies and public regulations as reports from
departments have indicated. We are following due processes of the law to recoup
what is due to government. Though the mills of God grind slowly, they grind
exceedingly small.
The operation head count is a testimony to our resolve to develop
institutional efficiency and effectiveness and our unflinching commitment to
root out corruption and fraud.
In total the operation has saved government over R1 786 204.79 per month out
of a total of over 200 cheques that remain uncollected. This money will
obviously be invested in service delivery programmes.
Background
The Executive Council (Exco), who met yesterday, 8 Wednesday 2006, has
instructed all departments to resolve all the impending cases arising from the
issues raised by the operation head count by the end of this financial year.
This is representative of the seriousness with which the provincial cabinet
takes the operation headcount.
By way of background the final report on the operation head count has been
presented before the Exco on 16 November 2005 and the first progress report on
14 December 2005, the Exco resolved in terms of decision no 147/2005 that:
* Department must submit quantifiable and updated reports by Tuesday, 20
December 2005 and furthermore, that a comprehensive report be presented at Exco
Lekgotla to be held in February 2006, and that
* The implementation of the results of the head count should be completed
before the end of the current financial year (2005/6)
Furthermore, the head of Department meeting of 11 January 2006 resolved that
all affected departments must submit updated and qualified head count reports
to the provincial Treasury by 16 January 2006.
The major items/topic covered in the report on the operation headcount in
the main included the following:
* What happened to the people who did not collect their salary
cheques?
* What happened to the official responsible for the implementation of the
termination of service of the retired/resigned employee?
* Indicate what corrective measures were taken and the income
* Debt amounts resulting from the overpayment of officials
* Amounts owed by 3rd parties as result of the overpayment of officials
* The status/position of the recovery of the overpayments as result of
terminations, transfers or deaths
* Who has been receiving salaries to the deceased employee for the period
before the head count?
* Current policy or legislation regarding session doctors
* Any interventions implemented in the department
* Has the system been adjusted according to identified changes?
* Progress regarding the reconciliation of the departmental structures with the
payroll.
The Exco meeting of 23 January 2006 directed that departments must speed up
the implementation of the operation head count and report quantifiable progress
on 8 February 2006.
The provincial Cabinet also noted a letter from national Education, Health
and Allied Workersâ Union (NEHAWU) commending the provincial administration on
the efforts taken to conduct the head count.
However, NEHAWU requested the provincial government to take stern action
against the officials responsible for the late terminations of service
resulting in salary overpayments.
All affected banks have provided information regarding the status of the
accounts of all affected employees with regard to being active/inactive or
closed and the movements of those funds out of the account into which they were
deposited.
Assessing the information received from the banks we have observed that
majority of the accounts are still open. It was decided that while the
departments are implementing the results of the operation, the information from
the banks should be provided to the provincial risk management unit and
internal audit unit for further investigations. The investigation would include
cases of resignations, deaths, transfers, and services terminations effected by
department during August/September 2005 for which no reasons were provided.
In the case of uncollected cheques for the Department of Education, all
information could not be provided to the banks as employees of this department
normally receive their salaries through cheques. A special investigation was
deemed necessary to confirm legitimacy of the recipients.
Furthermore, departments needed to conduct investigations regarding issues
such as the recipients of the salary cheques after death or termination of
service.
Departmental Progress Reports
Agriculture
* Uncollected cheques: According to the report, three cheques are still not
collected/resolved.
* Delayed terminations: An amount of R87 465.87 still needs to be recovered by
the Department.
* Corrective measures: Final letters of warning are being processed to the
supervisors of the affected officials.
Roads and Transport
The final report indicated that the department had 20 uncollected cheques
made up of 10 interns whose contracts expired in May 2005, six terminations and
four officers under investigation.
Economic Development
Uncollected cheques: According to the report, the number of uncollected
cheques reduced from 31 down to 12. The majority of the resolved uncollected
cheques were related to the late termination of contracts.
The total repayment amount is R6 000 which has been paid to 12 officials who
have either resigned, or had their contracts terminated. Letters to individuals
requesting repayment have been written. Should there be no positive response;
the debt will be handed over to a private collection agency for recovery of
repayment.
Education
Uncollected cheques:
Our investigations revealed that out of the identified 141 cases of the
uncollected cheques, 53 of them were in respect of employees who have resigned
from the public service but their records were not terminated from persal
system. The amount lost due to these cases was calculated and came to a total
of R1 029 339.50. This amount includes R554 767.80 paid to one educator in
Capricorn who resigned in July 1998 and continued to receive his salary until
the operation head count was launched. This case has been referred to our legal
service for further action. With regard to other cases where there are undue
payments made, they will be recovered from the employeeâs pension benefits.
Twenty eight cheques were in respect of employees who passed away between
June 2005 and September 2005. The total amount of undue payments made to these
employees is R43 819.07. Seven of the cheques were in respect of employees who
are on retirement. Undue payment made in this regard was R90 599.73 and the
amount is being claimed from their pension benefits.
Five cheques were for educators who were reported to have absconded. Undue
payment is R173 966.66. Some of the money will be recovered from the pension
benefits. For the part that cannot be covered by the pension benefits, we will
take the matter to legal section. Five cheques were in respect of employees who
have transferred to other provinces. The amount of R65 244.80 paid will be
recovered from the provinces to which they were transferred.
Three cheques were issued in respect of educators who are on study leave
without pay. The overpayment of R6 964.10 will be recovered from their
salaries. Applications for educators who have applied for retirement due to ill
health are still being processed. In some cases, the process is slow and has
already resulted in overpayments of R76 509.00 because employees are waiting
for the process while seated at home. The overpayments will be recovered from
their pension benefits.
The remaining educatorsâ cheques amounting to R60 363.80 were not collected
for various reasons. The case that is peculiar is that of an educator who is
not known at both the school in which payroll she appears and the district
office. According to information gathered from the district senior manager,
during the 1998 headcount, the same educator collected the cheque after she was
positively identified by the same head master who is denying knowledge of the
educator. She claims that since she identified her on that headcount, she has
never seen the educator. The case will be handed over to police.
Local Government
According to the report, all four officials who did not collect their
cheques were terminated with effect from 23 January 2006.
Recovery of overpayments: Seven cases were reported in the report from the
department. Three of these cases, the overpayments will be recovered from the
respective pension funds by 28 April 2006 whilst the other four cases
reportedly incurred no overpayments. The total amount to be claimed by the
department is R24 656.06.
Health
Uncollected cheques: Originally 17 session doctorâs cheques remained
uncollected. In the current report 11 doctors are entitled to payment, six
doctors are not entitled to payment.
Backdated terminations: 22 former employees accumulated an overpayment of
R63 798.03. Also 17 of these cases were referred to pension administration to
recover the overpayments. An amount of R26 751.75 has already been recovered
from eight employees. The balance of R37 046.28 is still in the process of
being recovered.
One session doctor for Tintswalo Hospital received salaries for the period
01/10/2002 to 31/03/2003 without proof of rendering any sessions. The
overpayment amounts to R9 228.00. His contact details are being traced with a
view to issuing a letter of demand.
Three session doctors at Mapulaneng Hospital terminated services on
30/04/2005, 31/05/2005 and 31/07/2005 respectively. Their salaries were frozen
instead of being terminated and hence cheques were issued in September 2005
during the head count. The salaries have now been terminated and there is no
overpayment.
One doctor at Messina Hospital received salaries for the period 1/09/2000 to
31/01/2006 without any proof of rendering sessions and the overpayment is R51
778.60 for which a letter of demand has been issued.
Officials responsible have been identified and the Department is in the
process of instituting disciplinary charges against them. The Department has
issued letters of recovery of overpayment to the affected session doctors who
benefited illegally.
A total of 22 former employees were identified who received payment after
termination amounting to an overpayment of R63 798.03. All but two of these
terminations arose from employees receiving salaries on 15 and terminating
services before the end of the month. Action has been taken to recover the
overpayment amounting to R63 798.03.
Of the 17 cases that have been referred to pension administration to recover
the overpayment from their pension, an amount of R26 751.75 has been recovered
from eight employees leaving a balance of R37 046.28 in respect of nine
employees which is still being processed.
Social Development
Out of 11 cases reported, seven cases incurred no overpayment. Cheques made
out to two employees who were mentally ill were cancelled and the remaining two
former learners on the learnership programme got employment in the private
sector. The terminations were delayed by two and one months respectively and
collectively they were overpaid by R4 374.00 that they have undertaken to
refund from January 2006.
Public Works
Uncollected cheques: The Department has nine uncollected cheques. Eight
cases have been service terminated.
Recovery of payments:
The overpayments made to three out of eight cases have been recovered. Two
cases are still unresolved due to a dispute between beneficiaries of the
estates of the two deceased officials.
Another two cases incurred no overpayments. The last case involves a
termination that was effected and disciplinary steps are being instated against
the supervisor involved in the case.
Office of the Premier
Uncollected cheques: The report confirms that 15 headmen have passed away
before the head count and the debt owed to the Department is R16, 754.00. There
was a case of Community Development Workers (CDWs) who never reported for duty
but continued to receive their salaries: the CDWs have now been taken off the
payroll as at 15 December 2005.
To further accelerate the process of redressing the administrative weakness,
a joint meeting of chief financial officers and Head of Corporate Services took
place to formulate provincial policies.
The meeting also resolved that departments had to speed up the recovery of
the monies owed and implementation of corrective measures by 31 March 2006 in
line with the Exco decision.
For information contact:
Saul Molobi
General Manager
Tel: (015) 287 6311
Cell: 083 444 2822
E-mail: molobis@premier.norprov.gov.za
Issued by: Office of the Premier, Limpopo Provincial Government
9 March 2006
Source: Limpopo Provincial Government (http://www.limpopo.gov.za/)
