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Govt backtracks on ghost workers
Shame Makoshori, The Financial Gazette
April 24, 2013

View this article on The Financial Gazette website

Government last week dramatically summersaulted over the ghost workers controversy that has gripped the Public Service Commission, with a Cabinet minister rejecting reports that a World Bank-funded skills and payroll audit undertaken three years ago had said Zimbabwe’s 236 000 strong civil service was pregnant with ghost workers.

Until last week, several officials, including Finance Minister Tendai Biti, had fiercely campaigned for the elimination of ghost workers from the government payroll.

Ghost workers, it was said, could have drained over US$17,5 million per month from State coffers between 2008 and 2011.

The bloated civil service consumes over 70 percent of government revenue, leaving very little funding for growth stimulating capital projects.

Discontentment over government’s inaction against ghost workers has swelled among unions representing public workers but the Executive has remained unmoved.

Public Service Minister, Lucia Matibenga, told The Financial Gazette’s Companies & Markets (C&M) last week that the audit by Ernst & Young of India never exposed any ghost workers.

“I have problems in understanding what you mean by ghost workers as this phrase is not found anywhere in the report by Ernst & Young India,” Matibenga said in written responses to C&M’s questions.

She, however, said Cabinet would soon discuss the payroll and skills audit, two years after the global auditors had submitted their reports.

“The memorandum on payroll and skills audit will be presented to Cabinet sooner rather than later and Cabinet will give direction in terms of the way forward...the minister will make a presentation to Cabinet, which in turn will give direction in terms of the way forward,” said Matibenga.

In a way, Matibenga’s statement is inconsistent with her party’s position as enunciated by Biti, the Movement for Democratic Change (MDC) secretary general. It also further exposes the conflicting signals coming out of Zimbabwe’s incoherent power-sharing administration since its formation in 2009. The conflicting policies and statements have been blamed for the stunted growth that has blighted the economy, bleeding industries.

In 2009, government commissioned the audit by Ernst & Young, which submitted two reports in November 2010 and July 2011.

While it has taken two years for these reports to be made public, indications are that over 70 000 ghost workers could be receiving salaries every month from the cash-strapped administration.

It therefore means that government could have lost over US$17,5 million per month through payments to non-existent workers between 2008 and 2011. This figure could be higher after 10 000 more civil servants were drafted into government last year without Treasury approval.

Cumulatively, government could have lost over US$1 billion since 2008, when Zanu-PF irregularly deployed youth militia into the public service, in a scandal that triggered calls for investigations.

As a result of the increasing wage bill, government has failed to review civil service salaries above the poverty datum line, which is estimated at about US$550 per month.

Staff morale has therefore hit rock bottom, worsening poor service delivery and corruption.

This money lost through the payment of ghost workers could have easily bankrolled the construction of over 100 000 low cost houses at US$10 000 each to reduce Zimbabwe’s urban housing backlog estimated at about 1,3 million.

It may also have funded half the financial requirements for the proposed Batoka power project, which would have electrified struggling industries while creating jobs.

It appears that the Ministry of Public Service either lacks capacity or is reluctant to tackle what unions believe to be its most important assignment in 33 years.

Chances are that resources that could have been directed towards social expenditure are being used to line the pockets of a few officials.

Independent economist, John Robertson, said the best way to deal with the issue would have been to identify those that are receiving salaries through the ghost workers and arrest them for fraud.

“Removing them from the payroll is not enough,” Robertson told C&M adding that there was also no justification for the 10 000 new recruits irregularly engaged by the government last year.

“They might have been employed for a political purpose rather than to serve the people,” observed Robertson.

Both sides of the inclusive government appear to be reluctant to take action against the ghost workers.
Zanu-PF could be afraid of upsetting the powerful youth militia that has previously propelled it to election victories.

At the same time, the two MDC factions in government, which have failed to tackle Zanu-PF on a number of outstanding issues, seem to be lacking the clout and courage to demand action.

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