Important note: Information in this article was accurate in 2004. The state of the art may have changed since the publication date.
Sunday Times - Sunday, 15 August, 2004
Thabo Mkhize
The department has launched a massive investigation to uncover the reasons why it overspent more than R500-million on its personnel budget - mainly due to inflated salary claims.
An independent team of forensic auditors are to be called in as the department tries to determine the extent of the fraudulent transactions picked up between 1999 and 2003.
Since current Premier Nosimo Balindlela was fired from the job of education MEC in 1998, the Eastern Cape has had four different MECs. Shepherd Mayatula replaced Balindlela but was re- deployed the following year and replaced by Stone Sizani.
Sizani resigned in 2002 and was replaced by Nomsa Jajula, who was replaced by Mkhangeli Matomela after the general elections earlier this year.
The province's treasury has found that irregular payments added to the department overspending its personnel budget for 2002/03 by a massive R500-million, more than R400-million the previous year.
The startling figures are contained in a report drawn up by the interim management team (IMT), sent to the province by President Thabo Mbeki last year to improve service delivery.
The report, released this week, details the poor state of management in the department and the lack of records of financial transactions and payments.
For six years, the Eastern Cape auditor-general has issued a disclaimer stating that records and supporting documentation are either unavailable for audit purposes or are of such poor quality that it is difficult to determine the validity of financial transactions.
Manelisi Wolela, c ommunication director in the premier's office, said: "An intensive investigation will be conducted to unearth corruption. The premier is very dedicated to ridding the province of corruption and dealing with fraud."
Balindlela was Education MEC between 1994 and 1998 and was fired by then Premier Makhenkesi Stofile for non-performance.
Wolela said that a sample of R143-million in payments made between 1999 and 2003 revealed extensive fraud.
He said he could not elaborate on the type of fraud or the individuals involved.
The Public Service Accountability Monitor (PSAM), an Eastern Cape watchdog group, said the amount of R143-million appeared to be the lowest possible amount fraudulently paid out.
The PSAM's Vuyo Tetyana said his organisation had drawn up a response to the findings of a number of reports, including the AG reports of the last few years and the IMT's report.
It found that there has been inadequate management in the department over several years and gross underspending on HIV and Aids education and primary school feeding schemes.
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