Payroll Fraud Leaves 26 Employees Unpaid for Two Weeks
By [Your Name]
Introduction:
Payroll fraud is a serious issue that can have detrimental effects on employees and organizations alike. The National Capital District Provincial Health Authority (NCDPHA) has recently faced such a situation, where 26 employees have gone unpaid for the past two weeks. The reason behind this unfortunate incident seems to be the diversion of their wages to repay a lone worker who received a massive K1 million tip payment. This shocking revelation has caused turmoil within the organization and raises concerns about the integrity of their payroll system.
The Diversion of Wages
The payment documents obtained by the Post-Courier clearly indicate that not only was the money diverted to pay the one officer, but 21 other officers also received large sums between K20,000 and K50,000 each. The existence of these unauthorized payments raises questions about the transparency and accountability of the organization’s financial practices.
Immediate Action Taken
Dr. Steven Yennie, the Chief Executive Officer of NCDPHA, has taken swift action to address the issue. He confirmed the initiation of an investigation into the matter and the immediate suspension of the human resources officer responsible for the payment. The officer who received the money was also suspended pending further investigation.
Furthermore, Dr. Yennie has advised the Bank South Pacific (BSP) and the finance department to halt all payments related to this incident. This proactive approach demonstrates the seriousness with which the organization is treating payroll fraud and its commitment to rectifying the situation.
The Payroll Fraud Investigation
The investigation into the payroll fraud extends beyond the diversion of wages to a lone worker. It also encompasses the unauthorized payments made to eight other officers currently employed by NCDPHA. These individuals have been suspended without pay, and a committee chaired by the Acting Deputy Director of Corporate Services – Human Resource Management (HRM) has been established to conduct further investigations.
According to Dr. Yennie, the fraudulent payroll transactions were processed without authorization and violated public service approval processes established by NCDPHA, the Department of Personnel Management, the Department of Finance ITD, and the Department of Health. The comprehensive investigation will aim to determine who approved or authorized these unusual salary payments and identify the origin of the claims.
Addressing Payroll Fraud and Strengthening Systems
Payroll fraud is a major concern for Dr. Yennie’s office and the health minister, who serves as the interim chairman of the council. In response to this incident, several corrective actions and measures have been taken to prevent future occurrences:
- Immediate suspension of the human resources manager responsible for the fraudulent payment
- Appointment of a new Deputy Director of Corporate Services
- Institution of internal control over the approval and processing of salary change notices
- Freezing of personal accounts of the individuals involved in the unauthorized payments
These steps reflect the commitment of NCDPHA to address the issue at hand and establish stronger oversight and control mechanisms for the payroll system. The organization aims to restore trust and ensure that its employees are paid accurately and on time.
Implications and Next Steps
The repercussions of this payroll fraud are not only financial but also organizational. The affected employees have endured two weeks without their rightful wages, causing financial strain and frustration. The NCDPHA must address their concerns and provide appropriate compensation and support during this challenging time.
Dr. Yennie has assured that the individual responsible for the unauthorized payments will be referred to the police for further investigation. This action demonstrates the commitment to fully resolve the issue and hold those responsible accountable for their actions.
Conclusion
Payroll fraud is a serious offense that can have significant consequences for both employees and organizations. The recent incident at NCDPHA highlights the importance of implementing robust systems and controls to safeguard against such fraudulent activities. It is crucial for organizations to remain vigilant and take immediate action when irregularities are discovered.
The investigation into the payroll fraud at NCDPHA is ongoing, and further measures will be taken to rectify the situation. It is essential that all employees receive their rightful salaries and that the organization rebuilds trust and credibility with its workforce.
Summary
Twenty-six employees of the National Capital District Provincial Health Authority (NCDPHA) have gone unpaid for the past two weeks due to payroll fraud. Their wages were allegedly diverted to repay a lone worker who received a K1 million tip payment. The investigation into this incident has led to the suspension of the HR manager involved in the payment, as well as the officer who received the money. Further investigations will be conducted to determine the extent of the unauthorized payments and hold those responsible accountable. The NCDPHA is implementing corrective actions and measures to prevent future payroll fraud and strengthen oversight of their payroll system. This incident highlights the need for organizations to remain vigilant and take swift action when irregularities occur to ensure the well-being and trust of their employees.
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BY GRACE SALMANG
and MIRIAM ZARRIGA
Twenty-six people have gone unpaid for the past two weeks with their wages allegedly being diverted to repay a lone worker National Capital District Provincial Health Authority (NCDPHA) K1 million in tip payment.
Payment documents obtained by the Post-Courier show that the money was not only diverted to pay the one officer, but that 21 other officers received large sums of between K20,000 and K50,000 each.
NCDPHA Chief Executive Officer Dr Steven Yennie confirmed that the investigation had begun with the NCDPHA’s “suspension of the human resources officer involved in the payment and the officer who received the money was also suspended”.
He further said that he has already advised the BSP and the finance department to stop all payments of the money.
“There are already several corrective actions and measures that have been taken, including the immediate suspension of the HR manager who was directly involved in the matter at hand.
According to the National Capital District Provincial Health Authority (NCD PHA), unauthorized payments of salaries to a senior executive after the payment was processed through Alesco’s payroll system, which was done offline,” he said Dr. Yennie.
“After reviewing payroll when the information was brought to our attention, there were also a number of irregularities on this fraudulent payment which were identified through the threshold report we saw.”
He admitted the current payroll fraud is a major concern for his office and also for the health minister, who is the interim chairman of the council.
“We took prompt action to address payroll fraud in the organization’s payroll on Payroll 13 of 2023.
“There are already several corrective actions and measures that have been taken, including the immediate suspension of the HR manager who was directly involved in the matter at hand.
“The investigation will also include the unauthorized payment of a substantial amount of money to the eight other officers who are currently employed by the NCDPHA,” he said.
Yennie said the decision to suspend the eight employees was carried out yesterday, while the HR manager was suspended last week.
The suspension notice was delivered to the eight staff yesterday afternoon so that they could be investigated.
“The officer who was mentioned as having received K1 million salary last day actually resigned three weeks ago, before the payment went through.
Dr. Yennie’s office was notified of this “unauthorized payment” of salaries to the senior manager, amounting to more than one million kina, after the payment was processed through Alesco Payroll (in offline payment mode).
“Based on our preliminary assessment, these fraudulent payroll transactions were processed without authorization by my office to certain individual employees, including 2023 payroll 13.
“These payments are also under investigation for payroll fraud and grossly violate public service approval processes established at NCDPHA, Department of Personnel Management, Department of Finance ITD and Department of Health,” he said.
“After being notified of these unauthorized payments (via NCDPHA Threshold Report and Payroll for Pay 13/2023), my office has taken the following steps to deal with officers directly or indirectly involved in this unprecedented payroll fraud of the government.
Preliminary actions taken so far and others to be taken include:
-Letter to Bank South Pacific Ltd to freeze the personal accounts of the named person and various other officials.
– Immediate suspension of the manager in charge of human resources.
– Appointment of a new Deputy Director of Corporate Services.
-Established a committee chaired by the Acting Deputy Director Corporate Services – HRM to conduct further investigations to establish the origin of the claims and execute an NCDPHA payroll.
– Immediate suspension without pay of eight (8) officers who received unusual and unauthorized gross salary payments on 2023 13 pay.
-Institution of internal control over the approval and processing of salary change notices (PVA).
Comprehensive investigation into who approved or authorized eight (8) months’ extraordinary salary payment processing on Alesco’s payroll system that resulted in the unusual and unauthorized salary payments of the nine (9) officers,” said said Dr. Yennie.
“The person will be referred to the police for investigation,” he said.
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