Province of the Eastern Cape

1
Province of the Eastern Cape

• DEPARTMENT OF EDUCATION
• ISEBE LEZEMFUNDO
• DEPARTEMENT VAN ONDERWYS

2
AGENDA

• The context of Education in E Cape
• Infrastructure
• LSM
• Matric Results
• Critical Post
• Payment Backlogs
• Management Information Systems

3
The Eastern Cape in context
4
Demographical Maps

• Regions
• Districts
• Schools

5
Infrastructure

• Success story
• MTEF in Eastern Cape
• All tenders awarded
• Cash Vs Accrual Accounting System
• 1500 x School Action Repair Program
• Conditional Section 21 transfer payments
• School Visioning Exercise

6
Payment backlogs

• Status - December 2001
• 6004 transactions awaiting authorisations
• 647 transactions at present outstanding
• Conversion from FMS to BAS
• 27th March 2002
• Loading Budgets
• 24th May 2002 that we can pay
• PFMA requirements
• Additional Constraints / Challenges
• BAS Equipment, Network, Staff Training
• Critical Post and Vacancies
• Poor Filing System - GTRS

7
Way Forward on Payment Backlogs

• Adverts
• CFO, Financial Mgt, PERSAL Suspense Accounts,
  Technical Support
• Task Teams
• Payment Backlogs Toll free hotline
• Personnel Creditors at Regional level
  integrated teams
• Financial Statement
• AFS, Cash Flows, Bank Reconc. (return of
  function), Debtor Management
• District Development Roll Out Plan
• New Work Methods / Systems
• Payment processing centre
• New procurement system (LSM)
• Move to Zwelitsha Work Flow Systems
• Filling of Critical Post / Vacancies

8
LSM

• Process mapping
• Payment / Procurement Centre
• Cost centre approach NSF
• LSM gt Textbooks stationery
• Includes desks, chalk, teaching aids
• 2 years tender on stationery
• IMBEWU II

9
Operation ShukumisaOperation Shake Up
Department of Education Eastern Cape

• Report back in the battle against fraud,
  corruption, inefficiency and poor service
  delivery in education

10
Operation Shukumisa

• Project Goals Phase 1
• Lead the Battle against Fraud, Corruption,
  Inefficiency and Poor Service Delivery
• To turn the organisation around and set new
  standards in Public Sector Management and Service
  Delivery
• Deliver on Governments promise to the People of
  the Eastern Cape
• To have a department that people can be proud of

11
Post Investigative Report Back
12
The Hon. MEC Stone Sizanis War Against Fraud,
Corruption Inefficiency
13
Salary Audit Ghost Busting

• To investigate and eliminate fraud on the payroll
• To identify persons drawing a salary and not
  rendering services for it
• To identify fictitious, deceased, resigned and
  absconded employees on the payroll
• To freeze salaries and prevent further losses
• To identify and prosecute offenders /
  beneficiaries
• To assess posts that were supposed to be filled
  and fill them with bona fide persons
• To rebuild an accurate salary database
• Identify misplaced staff, incorrect CORE, or
  other concerns

14
Approach Used in Ghost Busting

• Visit 6,358 schools and reregister 73,683
  employees
• Establish a database on findings
• Analyze the data, and compare it to the payroll
• Identify anomalies and implement disciplinary and
  corrective action
• Prepare reports and to implement preventative
  steps
• Hand over cases to Fraud Squad for prosecution

15
Findings Salary Audit
16
Analysis of Absenteeism
17
Summary - Overview

• R400 million is lost per year due to absenteeism
• This cost the Province R1.1m per day or R35m per
  month
• 23 out of 100 teachers are not at school at any
  one time

18
Implications of Absenteeism

• Loss to State R400 million per year
• Learners not being taught
• Breakdown in culture of learning and teaching in
  schools (COLTS)
• Manifested in high matriculation failure rate
• Cost to Society through losses in school drop out
  rate through insufficient guidance at school
  level is immeasurable

19
Ghost Busting R65 million
20
Next Step Preventative Plan

• Staff were placed in these vacancies
• Investigation into beneficiaries of absconded,
  deceased and unknown employees Phase II
• Enquiries were then made on the whereabouts of
  4,979 teachers
• Other 3,764
• Suspect 1,215
• Re-registration processes were set up on 3
  different occasions

21
District View of Absenteeism