“Of the 1243 cases reported, 53 percent (660 cases) were reported by national departments and 47 percent (583 cases) by the provincial departments,” the PSC said in a statement. The total amount involved in financial misconduct for both levels was R229.8m.
“The PSC found that the amount… emanated from unauthorised, irregular, fruitless and wasteful expenditure in respect of the 2011/2012 financial year,” it said.
The reports submitted by national and provincial departments indicated that R2.3m (1.1 percent) was recovered from employees found guilty of financial misconduct, and that R150.4m (65.4 percent) was considered “no loss to the state”.
At the time departments reported to the PSC, between April 1, 2011, and March 31, 2012, it was indicated that R77.1m (33.5 percent) had not been recovered. The amount involved in financial misconduct reported by national departments was R149.4m.
The cost of financial misconduct was the highest in the department of human settlements, at R100m, or 66.9 percent of the total cost reported by national departments. Home affairs reported the second highest cost at R11.9m.
The department of mineral resources reported the lowest cost at R5475 (0.003 percent). The amount involved in financial misconduct reported by provincial departments for the 2011/12 financial year was R80.4m.
KwaZulu-Natal was responsible for the highest percentage of this amount at R39m, or 48.5 percent of the provincial total. The second highest was Gauteng at R14m (17.6 percent), and the lowest was the Northern Cape at R486,907 (0.6 percent).
The PSC found that in 953 cases in which employees were found guilty of financial misconduct, criminal proceedings were instituted in 305 cases (32 percent). “In 263 cases (27.6 percent), departments indicated that no criminal proceedings were instituted against employees because not all acts of financial misconduct will result in criminal or civil action being taken against an employee,” it said.
“The report shows that in 384 (40.3 percent) of the cases, the departments failed to indicate whether criminal proceedings where instituted against employees charged with financial misconduct.”
In one case, the department indicated that further action was not applicable. “The PSC notes that the high numbers of public service officials that commit and get charged with financial misconduct is increasing at an alarming rate,” it said.
The PSC said the number of employees charged for misdemeanours relating to financial misconduct in the 2011/12 financial year was up 25 percent on 2010/11. However, the amount involved had decreased over the two years.