Fraud and theft made up the bulk of financial misconduct cases reported in the 2004/2005 financial year, the Public Service Commission (PSC) said on Thursday.
The highest number of cases were reported by national departments, which had 39% of the 513 cases of financial misconduct. The Free State and Eastern Cape reported 10% each.
Fifty-five percent of transgressions were fraud and theft, while 29% were misappropriation and abuse.
”This category of cases typically involves the unauthorised use of government vehicles, malicious damage to property and abuse of petrol cards,” said the PSC in a statement.
The increase could be ascribed to weak internal controls, where written policies and procedures did not exist or were not well enforced.
Gross negligence made up 14% of the reported transgressions and bribery 2%.
The PSC found a decrease in the number of cases of financial misconduct reported by departments in the public service.
However, not all departments submitted finalised financial-misconduct cases, as the Public Finance Management Act required them to.
”The PSC views this failure to comply … in a serious light, especially in view of the fact that good governance and accountability are essential to sound public management,” it said in a statement.
High numbers of financial-misconduct cases were committed by officials in posts such as senior accounting clerk, chief accounting clerk and by police inspectors.
”An increased level of trust is placed on these employees, who then abuse this trust …”
The largest number of financial-misconduct cases were found at production levels, among lower-income staff who may experience greater financial pressures.
These staff faced direct exposure to system-related financial transactions, with opportunities for fraudulent transactions presenting themselves daily. They also risked being influenced by senior officials.
At senior management level, 22 cases were reported, of which 41% where related to gross negligence, 36% to misappropriation and abuse and 23% to fraud and theft.
”Given the decision-making authority at this level the PSC find these figures very disturbing.”
The overview found that in 77% of disciplinary hearings, employees were found guilty of financial misconduct.
Seven percent of employees absconded, retired, resigned or passed away, which resulted in disciplinary action not being taken against them.
A figure of 38% of employees were dismissed, while others received written or verbal warnings, transfers, suspension without pay or imprisonment.
The PSC said that despite the fact that a reporting format for financial misconduct had been standardised, reports received from departments were inadequate.
”It is therefore difficult to discern accurate trends … and to gauge the overall picture of financial misconduct in the public service.” — Sapa