Ghost workers drain billions from public funds

The biggest problem facing public administration in South Africa – and the biggest opportunity for looters – is the lack of financial controls and even basic information on the government workforce.

That is why it appears to have been a lucrative scam to create “ghost workers” and then divert their salaries into the thieves’ wallets.

With a government salary bill of nearly R800 billion in this financial year – and a further R85 billion which is earmarked for employees in state-owned enterprises – the civil service is one fat cow waiting to be milked by the unscrupulous.

Estimates are that there are probably tens of thousands of these bogus workers being paid like clockwork with taxpayer money… and that money, which probably runs into the billions, is what should be used for good works, development or even just to keep people from starving.

The scale of the actual and possible looting is eyewatering.

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The elimination of ghost workers at the Passenger Rail Agency of SA (Prasa) alone saved it R200 million.

The Association of Certified Fraud Examiners estimates that ghost employees account for 8% of occupational fraud cases worldwide and experts believe this percentage could be even higher in South Africa, especially in government ranks, because of the lack of control and accountability.

Other than Prasa, multiple cases of ghost workers have been revealed in sectors ranging from municipalities to government departments at provincial and national level.

It is to be welcomed that President Cyril Ramaphosa has ordered the Special Investigating Unit to probe the ghost worker problem at Prasa… but it must go much further than that.

Government directors-general must be told to audit their areas and if discrepancies are found, they must be dealt with.

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Anyone involved in these scams must be prosecuted and locked up because this is economic terrorism, plain and simple.