PRESENTATION TO THE 2 ND SESSION OF THE ANTI- CORRUPTION LEARNING - - PowerPoint PPT Presentation

PRESENTATION TO THE 2ND SESSION OF THE ANTI- CORRUPTION LEARNING NETWORK DETECTING CORRUPTION THROUGH THE USE OF WHISTLEBLOWING MECHANISMS

PRESENTER: MR J. MUDAU DIRECTOR: NACH DATE: 30 JULY 2009 VENUE: SUMMERSTRAND, PORT ELIZABETH

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Introduction

• The PSC has been at the forefront of anti-corruption initiatives in the

Public Service since its inception.

• The PSC has to coordinate the implementation of the National Anti-

Corruption Forum (NACF), a cross-sectoral forum in the fight against corruption.

• The NACF is the national blueprint outlining the role of all sectors

and was developed on realization that the war against corruption can only be through a multi-pronged, collaborative and all-inclusive approach.

• The PSC has promoted professional ethics and has also been

directly involved in the management of initiatives to prevent corruption in the Public Service.

• Such initiatives include the Financial Disclosure Framework for

senior managers through which potential conflicts of interest are managed

• the implementation of the National Anti-Corruption Hotline (0800

701 701)

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Introduction (Cont-)

• Cabinet approved a single National Anti-Corruption Hotline (NACH)
• n 14 August 2003 (Cabinet Decision dated 17 September 2003).
• In terms of the Cabinet’s direction, the NACH was assigned to the

PSC and cases are referred to Departments for investigation.

• The PSC is required to investigate certain categories of cases such

as face to face interviews, high profile cases involving heads of Departments, etc.

• The purpose of the NACH is to establish a centralized hotline

system that will serve the public service as a whole as opposed to a decentralized system.

• The NACH caters for Government Departments, agencies and

public bodies

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Introduction (Cont-)

• Hotlines in Departments were phased out due to inconsistencies,

ineffective and duplication of human and financial resources.

• These hotlines were operated at a cost of over R60 million per

annum to Government.

• The management of a single anti-corruption hotline for the Public

Service is currently operated at a cost of approximately R3 million per annum.

• The NACH is accessible to the public regardless of where they may

be in the country.

• The service is available 24 hours per day and all official languages

are catered for.

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OBJECTIVES

The objectives of the NACH are to:

• deter potential corruption by making all employees and other

stakeholders aware that the Public Service is not a “soft target”;

• detect incidents of corruption through encouraging whistle blowers

to report incidents which they witness occurring in the Public Service;

• ensure the successful investigation of alleged corruption and to

provide feedback to whistle-blowers;

• assist the Public Service in identifying areas of corruption risk in
• rder that preventative and detective control measures can be

appropriately improved or developed;

• raise awareness that Government takes corruption seriously; and
• enable callers to report corruption anonymously thus encouraging

whistle- blowing.

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Cases of corruption reported to the NACH

• Since the inception of the NACH, 01 September 2004 to 30 June

2009, a total of 6305 cases were referred to Departments.

Breakdown of cases of alleged corruption

Cases 2004- 2005 2005- 2006 2006- 2007 2007- 2008 2008- 2009 2009- 2010 Total Prov Depts 390 498 566 747 865 124 3190 National Depts 204 527 542 652 877 101 2903 Public Bodies 3 8 19 68 107 7 212 Total 597 1033 1127 1467 1849 232 6305

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Cases referred to Departments as at 31 March 2008

Cases of alleged corruption

13.5 24.3 26.8 36.1 5 10 15 20 25 30 35 40 2004-2005 2005-2006 2006-2007 2007-2008

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Cont-

The number of cases received since September

2004 to March 2008 has increased from 13.5% to 36%.

The reasons for such increase could be the

following:

Advertisement of the NACH in the Media Increased willingness of citizens to report

alleged corruption

Events of corruption reported in the media that

draws attention to corruption

An increase in the actual extent of corruption

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Types of allegations received

MANI FESTATI ONS OF CORRUPTI ON MANI FESTATI ONS OF CORRUPTI ON

BRI BERY BRI BERY EMBEZZLEMENT EMBEZZLEMENT FRAUD FRAUD NEPOTI SM NEPOTI SM FAVOURTI SM FAVOURTI SM I NSI DER TRADI NG I NSI DER TRADI NG CONFLI CT OF CONFLI CT OF I NTEREST I NTEREST ABUSE OF POW ER ABUSE OF POW ER EXTORTI ON EXTORTI ON OMI SSI ON OF DUTI ES OMI SSI ON OF DUTI ES ABUSE OF PRI VI LEGED ABUSE OF PRI VI LEGED I NFORMATI ON I NFORMATI ON

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Types of allegations reported to the NACH as at 31 March 2008

Abuse of Government vehicles 504 Procurement irregularities 385 RDP housing fraud 156 Appointment irregularities 230 Social Grant Fraud 336 Identity Document Fraud 255 Criminal Conduct 358 Unethical behaviour 370 Mismanagement of Government Funds 662 Fraud and Bribery 781 Other 165

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INVESTIGATION OF CASES BY DEPARTMENTS

• Departments investigate referred allegations of corruption with a

view to report back to the PSC.

• Where necessary cases may be referred to an appropriate agency

for investigation.

• All investigations must be executed as speedily as possible(40 days

feedback to the PSC).

• Full investigation reports MUST be submitted to the

PSC in order to evaluate the cases and capturing them on the CMS.

• Status report MUST be submitted on a regular basis

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Feedback on cases received by the PSC as at 31 March 2008

Feedback on NACH cases

32.1 24.9 28.7 14.2 5 10 15 20 25 30 35 2004-2005 2005-2006 2006-2007 2007-2008

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Provision of feedback to the PSC

The NACH only received feedback on 31% of all cases

referred to departments.

Feedback declined in 2007-2008. There is poor coordination of cases with regard to the

referral of cases from the Offices of the respective Directors-General to the relevant provincial departments.

The causes delay in providing feedback to the PSC. The slow feedback by departments is impacting

negatively on the credibility of the NACH.

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Closing of cases on the CMS of the PSC as at 31 March 2008

Closed cases on CMS after investigation

31.3 39.5 22.5 6.4 5 10 15 20 25 30 35 40 45 2004-2005 2005-2006 2006-2007 2007-2008

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Report on Measuring the effectiveness of the NACH 2008

• FINDINGS

There are a slow rate feedback due to a lack of capacity and

accountability by senior managers to deal effectively with NACH cases.

Only three hundred and thirty five cases were closed on CMS. Adequate financial and human resources are not allocated to

combat and prevent corruption by departments and their political principals.

Problems experienced by departments in the handling of NACH

cases appears to be linked to the lack of investigative capacity and

the fact that departments do not have appropriate structures or

specialized units to deal with cases of alleged corruption as required by the Minimum Anti-Corruption Capabilities set by Cabinet

there seems to be lack of will/reluctance to investigative cases by

departments and lack of investigative capacity therefore is used as an excuse

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Findings (Cont-)

Outcome of investigations The successful investigation of cases resulted in

the recovery of R86 million from perpetrators;

As a result of the successful investigation of

cases, 81 officials were found guilty of misconduct;

Of these cases 15 officials were suspended; 25 officials were given final written warnings;

and

29 officials were dismissed.

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Recommendations

Provinces must review their referral protocols. Minister for the Public Service and Administration should issue

regulations on the Management of the Hotline.

Departments should create Forensic Investigative Capacity Provinces must establish Integrity Management Units to deal with

investigations.

Departments should commit themselves in dealing with abuse of GG

vehicles, abuse of school and social grant fraud

An SMS facility should be considered to increases access to the

NACH.

PSC must install the Web Enabled System Departments must conduct risk assessments on corruption

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Web Enabled System (WES)

• The Web Enabled System for case referrals to departments has

been installed at the PSC in July and will be operational in August.

• The PSC will commence the process with a pilot phase that will

include: Correctional Services, Gauteng and Mpumalanga Provincial Administrations.

• The advantages of the WES:
• Paperless environment-the system moves away from the paper-

based management of tip-offs reports

• Easy monitoring and assignment of tip-off reports- the system can

able to monitor the status of any action plans that have been assigned to the investigators to any specific tip-off report.

• E-mail reminders- are sent to users to remind them of how many

days are remaining to attend to action plans.

• Flexible reporting-The system is able to generate Excel reports

based on the criteria of the user.

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CONCLUSION

This presentation provided a picture of the “as-is”

situation with the management of the Hotline.

Clear challenges have emerged. The departments’ investigation capacity and means to

improve the rate of feedback needs to be considered.

Training for forensic investigators and data analysts

needs to be considered.

Have specialized courts to deal with corruption cases in

each province.

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THANK YOU!