3 days ago
Ghost employees and salaries leave KZN fiscus R160m in the red
Ghost employees and public servants' salaries, particularly in health and education, and wasteful spending are to blame for KwaZulu-Natal overspending its budget by close to R160m.
KwaZulu-Natal finance MEC Francois Rodgers painted a bleak picture in the KZN legislature on Tuesday when briefing MPLs on the unaudited 2024/25 financial year close-out report for provincial departments.
The treasury said KZN had experienced equitable share budget cuts amounting to more than R64bn since 2020.
'In the 2024/25 financial year, provincial expenditure amounted to R151.9bn, exceeding the budget by R158.6m. An amount totalling R7.8bn has been accrued to the 2025/26 financial year,' said Rodgers.
He said he was concerned that the amount accrued far exceeded accruals from the past two financial years.
'I am further concerned that from accruals, R3.2bn is more than 30 days which is non-compliant with the Public Finance Management Act. This signals a negative affect on future budgets,' he said.
With regard to ghost employees, Rodgers and his cabinet counterparts are conducting a verification process.
'Adherence to financial management prescripts and good corporate governance will be key to alleviating pressure on the provincial fiscus,' Rodgers said. 'We must also continue seeking partnerships with all key stakeholders, including the business community, and find cost-effective strategies that will bring us closer to the establishment of a capable and ethical state.'
The provincial cabinet recently approved the KZN financial recovery plan aimed at restoring financial stability, eliminating wasteful expenditure and enhancing revenue collection, among others.
Public Servants' Association KZN manager Mlungisi Ndlovu echoed Rodgers' concerns.
'The big question is where are they overspending, because the majority of them, especially frontline departments like education and health, are not financially sound,' he said.
Ndlovu said the provincial government needed to clamp down on the scourge of ghost employees in the public service.
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