MegaBanner-Right

LeaderBoad-Right

LeaderBoard-Left

Home ยป Industry News ยป Business Advisory & Financial Services News ยป Clampdown on government workers with millionaire lifestyles in South Africa

Clampdown on government workers with millionaire lifestyles in South Africa

The Public Service Commission (PSC) will introduce lifestyle audits for government workers from February 2022.

In a presentation on Tuesday (7 December), the group said that the audits would draw from a variety of databases that would provide management and investigators with a snapshot into certain aspects of the life of an employee.

โ€œSometimes, the only clue to illicit activities is a sudden unexplained change in an employeeโ€™s lifestyle. The lifestyle audit is, therefore, a critical management tool to identify staff members who, based on extravagant lifestyles, may potentially be engaging in illicit activities,โ€ it said.

โ€œThis understanding of a lifestyle audit is consistent with the description as contained in the Economics Dictionary, which points out that it is an investigation to ascertain whether a personโ€™s living standards is consistent with his/her reported income.โ€

If South Africa is to avoid becoming a failed state, public servants are responsible for ensuring that they live within their reported incomes, the PSC said.

Lifestyle audits will also help strengthen the already existing financial disclosure framework that helps determine conflict of interest.

The group provided an example of a lifestyle audit as follows:

  • A public servant earns a net salary of R45,000 a month;
  • They own five properties with a combined market value of R7.5 million. The total mortgage bond payment is R90,000 per month;
  • This public servant owns a boat with a monthly payment of R8,000. They also own three luxury vehicles, all with a combined monthly payment of R25,000;
  • The overall monthly payment for a mortgage bond, boat and motor vehicles is R123,000 per month;
  • In terms of this example, the officialโ€™s living standards and spending patterns are inconsistent with their reported income stream.

โ€œIn this regard, it needs to be noted that most public servants are honest and people of integrity. Some public servants could have acquired their wealth through honest means, e.g., inheritance, a wealthy partner, and as a successful business person,โ€ the PSC said.

โ€œThe PSC will be the first to undertake lifestyle audits of all its commissioners and employees to lead by example.โ€

To enquire about Cape Business News' digital marketing options please contact sales@cbn.co.za

Related articles

If the prime lending rate is phased out, what does it mean for consumers?ย 

If the prime lending rate is phased out, what does it mean for consumers?ย  By Therese Grobler, Head of Wealth Management at Momentum Financial Planning For...

How to Use a Voltage Tester: An Essential Guide for Electrical Safety and Efficiency

How to Use a Voltage Tester: An Essential Guide for Electrical Safety and Efficiency Fluke Electrical Application Note ย ย ย ย  Voltage testers are valuable tools for professionals...

MUST READ

Mayor tables R114m N2 Edge safety project

Mayor tables R114m N2 Edge safety project Cape Town Mayor Geordin Hill-Lewis says the City has allocated R114m in its adjustment budget for the N2...

RECOMMENDED

Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.