A black empowerment company has devised a=20 scheme to save millions lost to fraud,=20 writes Charlene Smith
Government and some provinces are=20 investigating whether “food cheques”, a=20 coupon-based system, could save millions=20 lost to fraud and corruption in school=20 feeding schemes.
Figures released by the Department of=20 Health this week showed that at least R4,3- million – enough to feed eight million=20 children – has been stolen from feeding=20 schemes across the country in the past=20 year. Almost double that amount was lost=20 the previous year.
And more bad news is expected after an=20 investigation into school feeding schemes=20 by the Public Accounts Committee, due out=20 soon.=20
The Department of Health is urgently=20 looking at ways to stop the rot. Feeding=20 schemes were one of the first projects=20 initiated by President Nelson Mandela after=20 his inauguration, but mismanagement and=20 corruption have seen the goals of=20 eradicating malnutrition and developing=20 community empowerment defeated in some=20 areas, particularly in the Eastern Cape,=20 Northern Province and parts of KwaZulu- Natal.
Now, a “food cheque” scheme has been mooted=20 by a black empowerment company, Intando=20 Yesizwe, which would see vouchers or “food=20 cheques” issued to schools on a monthly=20 basis by its management company, which=20 would pay suppliers. In addition, Intando=20 Yesizwe would also help establish community=20 structures to monitor the efficient use of=20 school monies, promote local economic=20 development and alert the authorities to=20 any suspected scams.
Dr Abe Nkomo, head of the parliamentary=20 select committee on health, said there was=20 a “dire need for upgraded management=20 systems” in relation to the delivery of the=20 nutrition programme and “anything that=20 approximates a foolproof solution would be=20 welcome”.
He said the Intando Yesizwe emphasis on=20 community involvement was critical “because=20 dependency can be avoided and the success=20 of these projects ensured only through=20 community involvement. Where communities=20 have taken ownership remarkable strides=20 have been made.
“At Ndunakazi, in the Valley of a Thousand=20 Hills, the nutrition programme has taken on=20 other partners in the form of the Medical=20 Research Council and a bakery, and there=20 has been a marked improvement in the=20 nutrition of schoolgoing children and in=20 the broader community.” =20
Dr David McCoy of the child health unit at=20 the University of Cape Town, who has been=20 seconded to the Health Systems Trust, said=20 a voucher system, if done properly, could=20 reduce the scope and potential for=20 corruption, “but if the primary school=20 nutrition programme is going to transform=20 itself from a limited school feeding scheme=20 into a more comprehensive nutrition=20 programme, the voucher system may need=20 further thinking”.
Many small traders complain that they are=20 being put out of business by selling to=20 schools that delay payment or don’t pay at=20 all. However, a Department of Health=20 official said schools were given the money=20 upfront and there was no reason why they=20 should not pay timeously.
Providing cheques on a monthly basis would=20 also allow for better budgeting. At present=20 feeding projects receive cheques to cover=20 three months of food, and often spend all=20 the money long before the time period is=20 up.
Department of Health research shows that in=20 Northern Province, as an example, police=20 are investigating the theft of R1,6-million=20 after a member of a school feeding project=20 committee used the money to “buy food for=20 personal use”. In another case a committee=20 member used government cheques to spend R83=20 000.
In Mpumalanga, school feeding project=20 members stole cheque books and awarded=20 themselves R30 000. A school principal paid=20 a supplier R8000 in another instance with=20 no proof of any food having being=20 delivered. So far more than R796,8-million=20 has been set aside for feeding schemes in=20 the three years of their operation, and=20 each year massive fraud has been uncovered.
Part of the reason for the staggering=20 losses, aside from poor controls and a high=20 level of illiteracy and innumeracy in rural=20 areas, which gives those who can read and=20 write the capacity to pull the wool over=20 the eyes of fellow committee members, is a=20 staggering lack of information in all=20 provinces about how many schools they have=20 and how many children attend each school.
In 1995, feeding scheme officials were able=20 to defraud R5-million by creating “ghost”=20 schools.=20
Dasi Moodley, an economist and former trade=20 unionist in the food sector and a=20 consultant to Intando Yesizwe, said the=20 “food cheque” scheme would remove cash and=20 government cheques from the system. It=20 would also establish a data base for each=20 province that would collate and provide=20 information on the numbers of schools and=20 accurate enrolment figures. “If questions=20 were raised about a certain school we would=20 be able to provide information that would=20 provide an automatic audit trail of what=20 was spent and where, and also whether=20 expenditure tied up with enrolment=20 figures.”
Intando Yesizwe would have to take=20 responsibility for any fraud or corruption,=20 but the cheques had such tight security=20 measures contained in their printing and=20 distribution that they were confident fraud=20 could be kept to a minimum. He says that=20 once approval is received, a six-month=20 pilot project could be up and running in a=20 province within two months.=20
The system can also be programmed to ensure=20 that only certain foods recommended by=20 Department of Health nutritionists can be=20 purchased, which would free health=20 officials from the management of what has=20 become a huge and cumbersome project=20 fraught with difficulties.
The involvement of community monitors, who=20 would receive stipends, would ensure=20 greater community management and economic=20 investments in the programme, whether using=20 the now unemployed vendors who used to sell=20 food to children as paid cooks in schools,=20 or the creation of vegetable growing=20 projects to supply schools.=20
Professor Ronnie Green Thompson,=20 superintendent general in the secretariat=20 of health in KwaZulu-Natal, said any method=20 to speed up the system would be welcome.=20
“There are multifaceted problems that vary=20 from area to area, most of which range from=20 a lack of capacity to communication=20 problems and difficulties at delivery=20 level. We took over an imperfect feeding=20 scheme from the national department in 1996=20 and are still trying to hone it.”
However, while forensic audits have been=20 introduced at a cost of some R5-million=20 nationally to pick up fraud and=20 maladministration, not enough has been done=20 to eliminate the potential for abuse.
Green Thompson says that the good done by=20 the feeding projects still outweighs the=20 bad.=20
“But while starvation is being avoided=20 there is still a need for greater=20 entrepreneurship in the administration of=20 the scheme. Communities must be empowered=20 to be watchdogs.”