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 27 th March 2002 Loading Budgets 24 th 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 > Textbooks & stationery Includes desks, chalk, teaching aids 2 years tender on stationery IMBEWU II

9. Operation Shukumisa Operation “Shake Up” Report back in the battle against fraud, corruption, inefficiency and poor service delivery in education Department of Education – Eastern Cape

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 Government’s 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 Sizani’s 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 Other3,764 Suspect1,215 Re-registration processes were set up on 3 different occasions

21. District View of Absenteeism