KZN Education Department owed nearly R550m by former employees

THE KZN Department of Education was owed millions in employee debt, some of which may never be recovered. Picture: Karen Sandison/African News Agency(ANA)

THE KZN Department of Education was owed millions in employee debt, some of which may never be recovered. Picture: Karen Sandison/African News Agency(ANA)

Published Feb 11, 2021

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Durban - THE KZN Department of Education was owed millions in employee debt, some of which may never be recovered.

This was detailed by KZN Education MEC Kwazi Mshengu and his head of department Enoch Nzama in a reply to a parliamentary question from the DA in which they revealed that there were more than 26 000 cases of debt amounting to nearly R600 million.

Those who were still employed by the department and owed money accounted for over R42 million of this debt.

More than R2.5 million of this debt related to overpayment made by the department in relation to suppliers and schools.

Within the past three months there were more than 600 cases of defaulted payments on a debt of R8.4 million.

The bursary, employee, ex-employee as well as suppliers and schools debts amounted to R593 511 897.45 with some of these dating back to 2004 while others were over three years.

While there was no time frame provided for the recovery of this debt, the department said it was deducting from the salaries of those employees that were still in service.

Mshengu and Nzama said ex-employee debt (R548 377 243) which increased by R7.3m during the second quarter of the 2020/21 financial year was recovered from pension benefits and leave gratuities, or the accounts were handed over to state attorneys through legal services or to debt collectors.

They said that all debt collection was monitored at head office level.

“Those debts that are irrecoverable once due processes have been followed are set aside for write-off. There is a specific exercise that is completed for in-service debt at head office and this is monitored through districts for recovery,” said Mshengu and Nzama.

The reply detailed that R92 805 in bursary debts were as a result of non-compliance with conditions, while employee debts (staff currently in the system) amounted to R42 159 412.

R2 696 109 of the debt was due to overpayment of suppliers and schools.

DA KZN Education spokesperson Imraan Keeka said the millions in default payments made in the last three months was a concern, with reasons for this cited as leave without pay, late terminations and tax debts.

He said they would continue monitoring the situation.

“Some of the debts existed from 2004. Paying lawyers endless sums of money to pursue debt that may have exceeded the two-year prescription period in law needs to be looked into. If this practice is ongoing, it needs to stop. All individuals who owe the department money need to sign an acknowledgement of debt binding them to repay the money in whatever terms of agreement are reached. Without this mechanism, delaying tactics by those no longer within the department’s employ will eventually lead to instances where they escape paying their dues.”

Meanwhile, the Special Investigating Unit cleared the department of wrongdoing in the procurement of water tankers to service schools. The probe emanated from social media posts alleging the department secured these at inflated prices.

Daily News