iFacts presents its statistics report for the third quarter of 2010.
21% of people screened had a poor credit record
Considering the economic pressures currently being experienced the world over, this is not surprising. Research shows that South Africa has approximately 3 million employees who experience negative cash flow every month.
7,5% of people screened had a criminal record
This is a decrease from previous statistics, but it is important to know what kind of crime has been committed and how you can safeguard your company from certain risks. During the World Cup we did a large amount of screening for security service providers and it is believed that the results are influenced by this. This is in line with the findings related to the verifications of work permits.
26% of drivers licenses verified were fraudulent
This is not just a problem whereby an individual can purchase a license off the street. License fraud is rampant within the relevant government departments. Many officials have been caught and accused of issuing fraudulent licenses.
18% of the matric certificates were either fraudulent or invalid
Our current educational system is in disarray and South Africa only achieved a 60% matric pass rate in 2009. The job market is highly competitive for university students and school leavers, leading to desperation and resorting to fraudulent documents being produced and submitted to prospective employers. This, added to the high rate of fraud, is a considerable concern because it indicates the desperation for people to find employment.
75% of the PDPs verified were either fraudulent or invalid
Unfortunately the driver industry is one fraught with problems and again these statistics could be related to people who were seeking work during the World Cup. It is important to remember that if the driver qualifications are not valid the insurance company may not cover certain claims.
8% of the qualifications verified were fraudulent
As previously mentioned, the job market is highly competitive. Statistics South Africa’s 'Quarterly Labour Force Survey' shows that employment has contracted by 0,7 percent or 86 000 jobs between the second and the third quarter of 2010. The unemployment rate in this period remained unchanged at 25,3 percent, but 4,4 million people remain unemployed and the youth comprise 3,1 million (71%) of the total unemployed. The number of discouraged jobseekers went up by 4,9 percent or 95 000 people.
We believe that this low level of fraud in qualifications during this period is related to the low level of qualifications required for the period during the World Cup. The trends are however indicating that the syndicates are applying for work as contractors. Very few companies are screening contractors.
16% of the ID numbers verified were false
Without an identity document a person cannot do much. No employment, no bank account, no existence. Those who have a shady past, or illegal immigrants, render false identity documents in order to secure employment.
Home Affairs has reported that there are over 2 million Zimbabweans living in South Africa, but only 350 000 of these people are documented and have lawful papers.
50% of the work permits verified were fraudulent
In 2005, documented immigrants to South Africa reached almost 10 000 people. Unfortunately, this is not a clear indication of how many people enter South Africa from other countries looking for work. Many are here illegally and therefore work for very low wages or use fraudulent permits to gain employment.
Having reviewed the above statistics, it is important for companies to recognise the importance of safeguard procedures. Do not allow a prospective or current employee with an abominable record to slip through the cracks. Employee screening is an economical and valuable service if the risks that can be avoided are considered.
For more information, visit www.ifacts.co.za
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