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PSA calls for the removal of Head of Department and CFO at North West Department of Education amid R100m ghost employees payments scandal

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Picture:Head of Department of North West Department of Education, Lengane Johannes Bogatsu

By OBAKENG MAJE

23 March 2026 – It is not raining, but pouring for the embattled North West Department of Education amid R100m ghost employees’ payments scandal. The Public Servants Association (PSA) is the latest entity to slam the department over the matter.

The PSA said it rejects attempts by the North West Department of Education to downplay the R100 million ghost employee payroll scandal as “isolated incidents” linked to manual system limitations. The PSA said this narrative is misleading, dismissive and fails to account for the magnitude and persistence of financial losses clearly exposed by the Auditor-General of South Africa (AGSA).

“The AGSA’s findings, outlined in Material Irregularity 01 of 2022/23, confirm that the department recorded staff debts in its financial statements amounting to over R100 million, including salaries paid to people who had resigned, retired, or passed away.

“These payments are not minor procedural lapses and reflect a sustained breakdown in fundamental financial controls, human resource verification processes and executive oversight. These functions are at the core of governance in any public institution and such failures highlight systemic weaknesses,” said in statement.

The PSA said it has noted with extreme concern the department’s assertion that these incidents do not constitute a governance collapse. It said losses of this magnitude over an extended period cannot be explained by isolated errors and demonstrate a pattern of negligence, weak supervision, and absence of consequence management.

“A system that allows such leakage to persist reflects deep institutional failure. The department’s reliance on manual processes as justification further exposes a lack of proactive leadership.

“Internal controls are designed to operate effectively, regardless of whether systems are manual or automated. Regular audits, reconciliations, and verification protocols mandated by the AGSA should have detected and prevented these irregular payments,” said PSA.

It said these failures indicate that controls were ignored or ineffective. The PSA further raises concern regarding the absence of transparency on disciplinary action.

“There is no evidence that officials responsible for authorising, processing or failing to detect these payments have been held accountable. This silence undermines public confidence and reinforces a culture, where negligence carries no consequence.

“The introduction of improved technology does not address the core issue of accountability. Systems do not govern institutions – people do. Without decisive action against those responsible, the risk of recurrence remains high, regardless of system upgrades.

“In line with AGSA’s findings and recommendations, the PSA reiterates the Union’s demand for urgent

intervention. The Head of Department and Chief Financial Officer must take responsibility and vacate their positions immediately,” it said.

PSA said a comprehensive forensic investigation must be instituted to determine the full extent of the irregularities and whether fraudulent activity was involved. It said all implicated officials must be suspended pending the outcome of investigations.

“Public funds must be safeguarded with the highest level of integrity. The people of North West deserve accountability, not explanations that minimise serious governance failures,” it said.

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R100 million payroll scandal rocks North West Department of Education

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Picture: North West MEC for Education, Viola Motsumi

By OBAKENG MAJE       

12 March 2026- The embattled North West Department of Education is under scrutiny after the AG’s findings uncover a staff debt book of more than R100 million, which includes payments to individuals who had resigned, retired, or passed away. It is alleged that such payments have occurred because there was a continuous breakdown in payroll verification, HR controls, and supervisory oversight.

The Democratic Alliance (DA) spokesperson on Education in North West, Wolfgang Wallhorn said these incidents are not isolated errors. Wallhorn said they represent a systemic governance collapse that placed public funds at serious risk.

“We are alarmed by the material irregularity uncovered by the Auditor General (AG) in the North West Department of Education’s payroll system, a major financial scandal that exposes deep-rooted failures in internal controls, financial oversight and consequence management.

“While the department has now introduced the Automated Leave and Termination Management System (ALTMS) to improve termination tracking and prevent future overpayments, the DA stresses that systems alone do not remediate accountability failures,” he said.

Wallhorn further said ALTMS will have to be taken through stringent live tests to assess effectiveness in practice to ensure similar incidents cannot occur again. He added that equally concerning is the continued lack of clarity around disciplinary and consequence management processes.

“The public deserves clarity as to who authorised these payments, who disregarded warning signs, and what actions have been taken against responsible officials. Without visible and credible disciplinary outcomes, any reform measures risk being meaningless.

“The DA therefore insists that the department submit regular, detailed progress reports to the Portfolio Committee covering investigations, recovery of funds, disciplinary proceedings, and system control improvements,” said Wallhorn.

He said these reports will determine the next oversight steps. Wallhorn said the residents of North West deserve assurance that public money is protected, that negligence is punished, and that this payroll scandal is resolved with full transparency and accountability.

“The DA will continue to pursue this matter until every responsible party is identified and every recoverable rand is accounted for,” he said.

Meanwhile, the North West Department spokesperson, Vuyo Mantshule said: “The department is aware of the Material Irregularity (MI) 01 of 2022/23, which was formally raised by the Auditor-General of South Africa (AGSA) on 31 July 2023. This MI relates to the reported staff debts identified in the department’s financial statements.

“The Auditor-General’s Material Irregularity (MI) arises directly from disclosures made by the North West Department of Education in its 2022/23 annual financial statements. The department proactively reported staff debts as part of its statutory financial reporting obligations, demonstrating transparency and adherence to financial reporting requirements.”

Mantshule said the staff debts stem from delayed terminations and resignations that occurred shortly after salary runs. He said at the time, these processes were managed manually, which contributed to timing gaps and overpayments.

“The department acknowledges that these historical procedural limitations played a role in the accumulation of staff debts and steps have been taken to strengthen termination controls to prevent similar occurrences in the future.

“The department emphasizes that these delayed terminations were isolated incidents, primarily resulting from the limitations of manual processes in place at the time,” said Mantshule.

He said these cases do not reflect systemic wrongdoing, but rather procedural shortcomings that have since been addressed through improvements and use of technology.

He said the department confirms that these incidents do not represent a systemic governance collapse. Mantshule said while the identified staff debts highlight areas where manual processes created vulnerabilities, they are isolated cases and do not reflect a broader failure in the department’s governance structures or oversight mechanism.

taungdailynews@gmail.com