Public Service Commission January 2010

Overview on Financial Misconduct for the 2008/2009

Financial Year

Vision

The Public Service Commission is an independent and impartial body created by the Constitution, 1996, to enhance excellence in governance within the Public Service by promoting a professional and ethical environment and adding value to a public administration that is accountable, equitable, efficient, effective, corruption-free and responsive to the needs of the people of South Africa.

Mission

The Public Service Commission aims to promote the constitutionally enshrined democratic principles and values of the Public Service by investigating, monitoring, evaluating, communicating and reporting on public administration. Through research processes, it will ensure the promotion of excellence in governance and the delivery of affordable and sustainable quality services.

Published in the Republic of South Africa by:

THE PUBLIC SERVICE COMMISSIONCommission House

Cnr. Hamilton & Ziervogel StreetsArcadia, 0083

Private Bag x121Pretoria, 0001

Tel. (012) 352-1000Fax (012) 325-8382

Website. www.psc.gov.za

National Anti-Corruption Hotline Number for the Public Service:0800 701 701 (Toll-Free)

Compiled by Branch: Integrity and Anti-Corruption

Distributed by Directorate: Communication and Information ServicesPrinted by: Milk Brown Designs & Communications

ISBN: 978-0-621-39356-9RP: 76/2010

Overview on Financial Misconduct

for the 2008/2009 Financial Year

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NATIONAL DEPARTMENT NO OF CASES

DoJCD 121

Home Affairs 22

Defence 20

Social Development 15

Correctional Services 13

Health 9

National Prosecuting Authority 9

SAPS 8

Minerals & Energy 6

Water Affairs and Forestry 6

Public Service and Administration 5

Statistics South Africa 5

Housing 3

Land Affairs 3

Trade and Industry 3

Arts and Culture 2

GCIS 2

Office of the PSC 2

Public Works 2

Agriculture 1

National Treasury 1

Independent Complaints Directorate 1

The Presidency 1

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“There is no kind of dishonesty into which otherwise good people more easily and frequently fall than that of defrauding

the government”.

Benjamin FranklinAmerican statesman, scientist and philoshopher

1706-1790

TYPE DESCRIPTION

Corruption Defined in the Prevention and Combating of

Corrupt Activities Act, 20044.

Fraud The unlawful and intentional making of a

misrepresentation which causes actual and/

or potential prejudice to another.

Financial

Mismanagement

Expenditure other than unauthorised

expenditure, incurred in contravention of, or

that is not in accordance with a requirement

of any applicable legislation.

Theft The unlawful taking with the intent to steal

something which is prone to being stolen.

Misappropriation

and abuse

The wrongful, improper or excessive use of

public funds and/or assets in a person’s care.

Gross negligence Any act or omission without considering the

consequences thereof.

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CATEGORY DESCRIPTION

Guilty Cases where the Chairperson of the disciplinary

hearing had found the employee guilty of the

charge(s), or the employee pleaded guilty to

the charges.

Withdrawn Cases where the employee was charged

with misconduct, but the charge(s) was/were

withdrawn. The reasons for the withdrawal of

the charges are ascribed to a lack of evidence,

the time frame since the incident occurred,

the employee repaying the loss and in some

cases the transfer of the employee to another

department.

Resigned Cases where the employee has resigned from

the Public Service whilst the disciplinary case

was pending.

Not guilty Cases where the Chairperson of the disciplinary

hearing has found the employee not guilty of

the charge(s).

Contract

expired/

Retired/

Deceased/

Absconded

Cases where, whilst the disciplinary case was

pending –

• the employee’s fixed term contract of

employment expired;

• the employee attained the prescribed

retirement age and retired from the Public

Service;

• the employee has passed on; and

• the employee absented him/herself from

his/her official duties without permission

for a period exceeding one calendar month.

Figure 8: Outcome of financial misconduct cases for the 2008/2009 financial year

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AMOUNT AMOUNTRECOVERED

NO LOSS TO THE STATE

Nat Dept R 69 552 548 R 845 942 R 2 705 742

E Cape R 819 321 R 54 500 R 589 862

Free State R 717 813 R 7 490 R 0

Gauteng R 674 172 R 29 102 R 546 879

KZN R 5 204 304 R 6 478 R 846 895

Limpopo R 2 580 530 R 1 411 037 R 481 729

Mpumalanga R 18 930 425 R 26 380 R 2 290 005

N West R 511 827 R 15 018 R 14 773

N Cape R 328 243 R 33 712 R 0

W Cape R 791 889 R 22 223 R 18 242

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Figure 10: Breakdown of the responses by departments in regard to further action taken against employees

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13 As the names of some departments only changed in May 2009, the table reflects the names of the departments as were applicable during the reporting period.

Appendix A: Breakdown of financial misconduct cases reported by departments in provinces

PROVINCE DEPARTMENT13NUMBER

OF CASES

Eastern Cape Agriculture 2

Education 3

Health 6

Office of the Premier 4

Public Works 3

Sports, Recreation, Arts and Culture 3

Eastern Cape Total 21

Free State Education 40

Health 9

Sports, Arts and Culture 6

Tourism, Environment and Economic Affairs 3

Provincial Treasury 1

Free State Total 59

Gauteng Education 7

Housing 1

Health 60

Social Development 3

Public Transport, Roads and Works 8

Sports, Arts, Culture and Recreation 1

Gauteng Shared Service Centre 1

Gauteng Total 81

KZN Agriculture and Environmental Affairs 17

Education 196

Health 32

Local Government and Traditional Affairs 6

Royal Household 2

Transport 5

KZN Total 258

Limpopo Agriculture 3

Education 159

Economic Development, Environment & Tourism 6

Health & Social Development 23

Local Government and Housing 5

Office of the Premier 30

Public Works 13

Roads and Transport 15

Safety, Security and Liaison 1

Limpopo Total 255

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13 As the names of some departments only changed in May 2009, the table reflects the names of the departments as were applicable during the reporting period.

PROVINCE DEPARTMENT13NUMBER

OF CASES

Mpumalanga Agriculture and Land Administration 3

Cooperative Governance and Traditional Affairs 4

Finance 3

Health and Social Services 6

Office of the Premier 4

Roads and Transport 11

Social Development 2

Mpumalanga Total 33

North West Agriculture Conservation and Environment 6

Economic Development and Tourism 9

Education 1

Finance 2

Office of the Premier 1

Public Works 1

Sport, Arts and Culture 2

Transport, Roads and Community Safety 20

North West Total 42

Northern Cape Economic Affairs 1

Education 49

Health 3

Housing and Local Government 2

Office of the Premier 1

Finance 1

Safety and Liaison 3

Social Services and Population Development 3

Northern Cape Total 63

Western Cape Agriculture 5

Community Safety 22

Cultural Affairs and Sport 4

Economic Development and Tourism 1

Education 33

Environmental Affairs 6

Health 44

Local Government and Housing 10

Social Development 1

Transport and Public Works 6

Western Cape Total 132

Grand Total 944

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14 As the names of some departments only changed in May 2009, the table reflects the names of the departments as were applicable during the reporting period.

Appendix B: Cost of financial misconduct reported at national level

DEPARTMENT14 AMOUNT

R/C

AMOUNT

RECOVERED

R/C

NO LOSS TO

THE STATE

R/C

Agriculture R 19 000 000.00 R 0.00 R 0.00

Correctional Services R 36 368.43 R 28 280.70 R 6 168.73

Defence R 776 818.30 R 56 774.80 R 167 257.47

GCIS R 4 750.00 R 4 750.00 R 0.00

Health R 100 991.50 R 17 408.15 R 83 583 .35

Home Affairs R 141 003.06 R 136 328.04 R 3 064.02

Housing R 40 331.39 R 1 605.00 R 0.00

Independent Complaints Directorate R 240.00 R 0.00 R 0.00

DoJCD R 31 194 231.94 R 502 466.02 R 0.00

Land Affairs R 97 881.11 R 40 322.93 R 0.00

Minerals and Energy R 15 239 313.96 R 0.00 R 239 313.96

National Treasury R 1 114.38 R 1 114.38 R 0.00

The Presidency R 200.00 R 0.00 R 0.00

Public Service and Administration R 5 000.00 R 0.00 R 0.00

Office of the PSC R 93 485.88 R 500.00 R 92 985.88

Public Works R 20 157.02 R 162.00 R 0.00

SAPS R 102 825.37 R 0.00 R 62 774.16

Social Development R 2 166 316.33 R 0.00 R 2 050 594.93

Statistics South Africa R 21 729.01 R 21 729.01 R 0.00

Trade and Industry R 30 512.00 R 34 501.60 R 0.00

Water Affairs and Forestry R 479 279.06 R 0.00 R 0.00

TOTAL R 69 552 548.74 R 845 942.64 R 2 705 742.50

Amount not recovered R 66 000 863.60

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14 As the names of some departments only changed in May 2009, the table reflects the names of the departments as were applicable during the reporting period.

Appendix C: Cost of financial misconduct reported at Provincial level

PROVINCE DEPARTMENT15 AMOUNT

R/C

AMOUNT

RECOVERED

R/C

NO LOSS TO

THE STATE

R/C

Eastern Cape Agriculture R 20 000.01 R 00.00 R 20 000.01

Education R 162 217.11 R 3 500.00 R 0.00

Health R 512 180.91 R 0.00 R 512 180.91

Office of the Premier R 59 472.00 R 2 000.00 R 57 472.00

Sports, Recreation, Arts and

Culture

R 65 451.80 R 49 000.00 R 209.80

Eastern Cape Total R 819 321.83 R 54 500.00 R 589 862.72

Free State

Education R 350 368.56 R 0.00 R 0.00

Health R 240 400.34 R 0.00 R 0.00

Sport, Arts and Culture R 19 444.04 R 0.00 R 0.00

Tourism, Environment and

Economic Affairs

R 100 110.57 R 0.00 R 0.00

Provincial Treasury R 7 490.00 R 7 490.00 R 0.00

Free State Total R 717 813.51 R 7 490.00 R 0.00

Gauteng Education R 332 808.00 R 3 180.00 R 318 128.00

Housing R 5 700.00 R 0.00 R 5 700.00

Health R 50 150.32 R 24 199.89 R 41.65

Social Development R 55 550.00 R 0.00 R 0.00

Public Transport, Roads and

Works

R 6 954.27 R 1 722.23 R 0.00

Sports, Arts, Culture and

Recreation

R 198 123.65 R 0.00 R 198 123.65

Gauteng Shared Service Centre R 24 886.24 R 0.00 R 24 886.24

Gauteng Total R 674 172.48 R 29 102.12 R 546 879.54

KZN Agriculture and Environmental

Affairs

R 2 547 841.60 R 0.00 R 0.00

Education R 1 771 237.23 R 0.00 R 0.00

Local Government and

Traditional Affairs

R 30 229.75 R 0.00 R 0.00

Royal Household R 12 580.30 R 5 978.00 R 0.00

Transport R 842 415.80 R 500.00 R 846 895.80

KZN Total R 5 204 304.68 R 6 478.00 R 846 895.80

Limpopo Agriculture R 9 820.00 R 2 100.00 R 1 750. 00

Education R 1 335 161.43 R 1 335 161.43 R 0.00

Economic Development,

Environment and Tourism

R 203 720.62 R 0.00 R 1 300.00

Health and Social Development R 145 120.67 R 23 607.60 R 6 150.77

Local Government and Housing R 99 668.83 R 0.00 R 0.00

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15 As the names of some departments only changed in May 2009, the table reflects the names of the departments as were applicable during the reporting period.

PROVINCE DEPARTMENT15 AMOUNT

R/C

AMOUNT

RECOVERED

R/C

NO LOSS TO

THE STATE

R/C

Office of the Premier R 112 858.33 R 3 430.00 R 0.00

Public Works R 146 559.38 R 46 738.14 R 0.00

Roads and Transport R 524 381.26 R 0.00 R 472 528.64

Safety Security and Liaison R 3 240.00 R 0.00 R 0.00

Limpopo Total R 2 580 530.52 R 1 411 037.17 R 481 729.41

Mpumalanga Agriculture and Land

Administration

R 15 512 548.33 R 0.00 R 0.00

Cooperative Governance and

Traditional Affairs

R 7 050.00 R 0.00 R 0.00

Finance R 409 702.05 R 0.00 R 0.00

Health and Social Services R 743 135.39 R 0.00 R 297 000.00

Office of the Premier R 2 003 575.00 R 0.00 R 1 993 005.00

Roads and Transport R 70 080.00 R 22 380.00 R 0.00

Social Development R 184 334.32 R 4 000.00 R 0.00

Mpumalanga Total R 18 930 425.09 R 26 380.00 R 2 290 005.00

North West

Agriculture, Conservation and

Environment

R 78 127.00 R 8 264.00 R 13 073.00

Education R 91 184.75 R 1 560.00 R 0.00

Economic Development and

Tourism

R 5 194.21 R 5 194.21 R 0.00

Health R 297 370.50 R 0.00 R 0.00

Office of the Premier R 1 700.00 R 0.00 R 1 700.00

Public Works R 2 750.00 R 0.00 R 0.00

Transport, Roads and

Community Safety

R 35 500.75 R 0.00 R 0.00

North West Total R 511 827.21 R 15 018.21 R 14 773.00

Northern Cape Economic Affairs R 8 500.00 R 0.00 R 0.00

Education R 227 763.00 R 0.00 R 0.00

Health R 1 309.34 R 0.00 R 0.00

Housing and Local Government R 5 111.93 R 5 111.93 R 0.00

Office of the Premier R 8 000.00 R 0.00 R 0.00

Finance R 48 958.75 R 0.00 R 0.00

Safety and Liaison R 21 464.12 R 21 464.12 R 0.00

Social Services and Population

Development

R 7 136.00 R 7 136.00 R 0.00

Northern Cape Total R 328 243.14 R 33 712.05 R 0.00

Western Cape Cultural Affairs and Sport R 41 880.36 R 1 800.36 R 0.00

Economic Development and

Tourism

R 18 242.58 R 0.00 R 18 242.58

Education R 307 416.45 R 19 735.77 R 0.00

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PROVINCE DEPARTMENT15 AMOUNT

R/C

AMOUNT

RECOVERED

R/C

NO LOSS TO

THE STATE

R/C

Environmental Affairs R 2 385.85 R 686.96 R 0.00

Health R 343 790.23 R 0.00 R 0.00

Local Government and Housing R 35 878.15 R 0.00 R 0.00

Social Development R 28 000.00 R 0.00 R 0.00

Transport and Public Works R 14 296.00 R 0.00 R 0.00

Western Cape Total R 791 889.62 R 22 223.09 R 18 242.58

Grand Total R 30 558 528.08 R 1 605 940.64 R 4 788 388.05

Amount not recovered R 24 164 199.39

15 As the names of some departments only changed in May 2009, the table reflects the names of the departments as were applicable during the reporting period.

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NOTES

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NOTES

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NOTES

Eastern Cape91 Alexandra RoadKing William’s Town, 5601

Tel: (043) 643-4704Fax: (043) 642-1371

Free State62 Fedsure Building3rd Floor, St Andrews StreetBloemfontein, 9301

Tel: (051) 448-8696Fax: (051) 448-4135

GautengTen Sixty-Six Building16th Floor, 35 Pritchard StreetJohannesburg, 2001

Tel: (011) 833-5721Fax: (011) 834-1200

KwaZulu-Natal262 Brasford Housecnr Langalibalele and Chief Albert Luthuli StreetsPietermaritzburg, 3200

Tel: (033) 345-9998Fax: (033) 345-8505 Mpumalanga19 Russel StreetNelspruit, 1200

Tel: (013) 755-4070Fax: (013) 752-5814

PUBLIC SERVICE COMMISSION OFFICES

Northern Cape1st FloorWoolworths Buildingcnr Lennox & Chapel StreetsKimberley, 8300

Tel: (053) 832-6222Fax: (053) 832-6225 LimpopoKirk Patrick Building40 Schoeman StreetPolokwane, 0699

Tel: (015) 291-4783Fax: (015) 291-4683

North-WestMmabatho Post Office BuildingGround FloorUniversity DriveMmabatho, 2735

Tel: (018) 384-1000Fax: (018) 384-1012

Western CapeSanlam Golden Acre Building21st Floor, Adderley StreetCape Town, 8000

Tel: (021) 421-3980Fax: (021) 421-4060

Parliamentary OfficeSanlam Golden Acre Building21st Floor, Adderley StreetCape Town, 8000

Tel: (021) 418-4940Fax: (021) 418-5040

Public Service Commission

Tel: +27 12 352-1000Fax: +27 12 325-8382Website: www.psc.gov.za

National Anti-Corruption Hotline for the Public Service: 0800 701 701

Republic of South Africa