Pietermaritzburg – A shocking revelation has rocked the KwaZulu-Natal provincial government: a suspected R600 million bill for airtime and data, with strong indications that a significant portion has been fraudulently claimed by “ghost workers”.
The provincial Department of Finance has launched a full-scale investigation into the matter, promising transparency and accountability.
KwaZulu-Natal’s MEC for Finance, Mr Francois Rodgers, announced the investigation in a statement released to the media. He didn’t mince words, describing the potential R600 million liability for airtime and data as “staggering”.
This figure represents the department’s projected expenditure for the current financial year. The sheer scale of the potential loss has raised serious concerns about financial mismanagement and the urgent need for robust internal controls within the provincial government.
The investigation is not merely focused on identifying the amount of misused funds, but also on uncovering the mechanisms used to perpetrate the fraud. Early findings suggest a disturbing pattern of irregularities.
Mr Rodgers explained, “A preliminary investigation suggests that some costs may be duplicated on the same account. It’s also possible that payments are being made to people no longer employed by the government, some of whom may have passed away.”
These “ghost workers”, as they are commonly known, are individuals who are listed on the payroll but do not actually work for the government, resulting in the fraudulent disbursement of public funds.
The scale of the suspected fraud is particularly concerning given the current economic climate. KwaZulu-Natal, like other provinces across South Africa, is facing significant budget constraints and is implementing austerity measures to manage its finances effectively. The potential loss of R600 million represents a substantial blow to the province’s ability to deliver essential services to its citizens. This wasteful expenditure of public funds is unacceptable and undermines the government's efforts to address pressing social and economic challenges.
The MEC’s statement highlighted the seriousness of the situation and the government’s commitment to addressing it. He stated, “We have tasked a team in the Premier’s office to investigate to prevent this unnecessary expenditure of public funds.”
This demonstrates a proactive approach, indicating a willingness to tackle the issue head-on and bring those responsible to account. The investigation will not only focus on recovering the misappropriated funds but also on implementing measures to prevent similar incidents in the future. This includes a thorough review of the province's financial systems and procedures to identify vulnerabilities and strengthen internal controls.
The investigation is expected to be comprehensive, encompassing a detailed review of all airtime and data usage records. This will involve scrutinising individual accounts, identifying discrepancies, and tracing the flow of funds to determine who benefited from the alleged fraud.
The team tasked with the investigation will employ forensic accounting techniques to meticulously examine financial records and uncover any evidence of collusion or other criminal activity. The investigation’s findings will be made public once completed, ensuring transparency and accountability.
The timing of this investigation is also significant, coming shortly after Premier Thami Ntuli blocked a proposal by the MEC for Cooperative Governance and Traditional Affairs, Thulasizwe Buthelezi, to establish additional offices in Durban.
This decision, according to the Premier, was made to curb escalating costs. The current investigation into the airtime and data fraud further reinforces the Premier’s commitment to fiscal responsibility and the need for stringent financial management within the provincial government.
