'Devastating' corruption in E Cape health dept
2013-02-04 07:26
Port Elizabeth - A forensic audit of the Eastern Cape health
department has revealed "devastating" large-scale graft and nepotism.
A total of 544 department workers were suspected to be ghost
employees, after it was determined they had invalid identity numbers, the
department said in a statement on Sunday.
A total of 8 034 employees were directors of active
companies and 929 were listed as suppliers for the health department.
Of the 8 034 staff members, 235 had received payment of
R42.8m from the department.
Payments made to employees included R7.3m for providing
medical support personnel, R4m and R3.5m for engineering support staff, and
R3.8m for an emergency services member.
The department said there were cases of 35 spouses of
employees doing business with it, and linked to 35 companies which received
payments of R11m.
There were also procurement irregularities in supplier
invoices.
Forensic investigation
The findings formed part of a forensic investigation
commissioned by Eastern Cape Premier Noxolo Kiviet and health MEC Sicelo Gqobana.
The investigation was carried out by the Special
Investigating Union (SIU), the SA Revenue Service, Asset Forfeiture Unit and
Eastern Cape health department.
"There are also a host of cases where procurement
irregularities are rife in the manipulation of payments to avoid policy,
payments made without invoices and duplicate payments," the department
said.
The objective of the probe was to identify irregular
expenditure, illegal contracts, tax transgressions, and recover losses.
"This preliminary report by the SIU and partners shows
that the department is committed to clean governance and will root out
corruption as it stifles service delivery," the department said.
The SIU is currently investigation alleged manipulation of
procurement processes at the East London emergency services.
- SAPA
