Farmers Lives Matter SA

R4 Billion Lost to ‘Ghost Employees’ on Government Payroll, Committee Hears

A parliamentary committee has expressed severe frustration over what it termed weak and incomplete presentations from government departments regarding the pervasive issue of “ghost employees” on the state’s payroll, a problem estimated to have cost the public purse nearly R4 billion.

The Portfolio Committee on Public Service and Administration grilled officials from National Treasury, the Department of Public Service and Administration (DPSA), and the office of the Auditor-General in a tense sitting. The committee was seeking concrete answers on the mechanisms allowing for the continued payment of salaries to non-existent workers, with figures dating back to 2021.

The revelations prompted a strong reaction from the Public Servant Association (PSA), whose spokesperson, Madimetja Mautla, called the situation “shocking” and indicative of a deep-rooted crisis in accountability.

“This problem did not start yesterday… We should blame the accounting officers in all government departments,” Mautla stated. He emphasized that the lost funds—estimated at R3.9 billion—could have been used to employ more police officers, nurses, and educators, thereby bolstering critical service delivery.

The scandal appears more sophisticated than simple administrative errors. Concerns were raised that the fraud extends to the Government Employees Pension Fund (GEPF), suggesting a well-organized scheme. Mautla linked this to a new government early retirement program, expressing fear that it could create another channel for unscrupulous activities.

“It is theft,” Mautla said. “It is a deep-rooted problem that has to be rooted out and it is all due to the lack of systems and lack of controls in government generally.”

When questioned on how such fraud could persist, Mautla argued that tracing the payments should not be “rocket science,” given the technology and law enforcement resources available. He called for those responsible to be identified and prosecuted.

To rectify the issue, Mautla proposed practical solutions including stringent physical verification of employees, the use of biometric systems, and more robust action by internal auditors. He cited other African nations like Nigeria, Tanzania, and Kenya as examples where such measures have been successfully implemented to clean up payrolls.

The onus is now on Parliament to ensure accountability. The committee has demanded that the DPSA return with more tangible information and a clear plan of action. Mautla echoed this, calling for political will to ensure accounting officers are held personally responsible.

“It remains to be seen if indeed parliament will hold the relevant individuals or the accounting officers accountable for this,” Mautla said, noting that the government’s frequent complaints about an unsustainable public wage bill ring hollow while such massive fraud continues unabated.