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GAUTENG ANTI-CORRUPTION STRATEGY2015 - 2019

GAUTENGPROVINCIAL GOVERNMENTREPUBLIC OF SOUTH AFRICA

Anti- corruption strategy.indd 1 9/2/15 10:56 AM

© 2015, Gauteng Provincial GovernmentCopyright in the volume as a whole or in part vested to the

Gauteng Office of the Premier

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Contents

Anti-Corruption Strategy Gauteng Province i

List of Tables iiiList of Diagrams iiiAbbreviations ivForeword v

CHAPTER 1: INTRODUCTION 1

1.1 Background 11.2 Problem Statement 11.3 Methodology 71.4 Objectives of the Strategy 81.5 Outline of the Strategy 8

CHAPTER 2: REVIEW OF THE 2009-2014 GAUTENG ANTI-CORRUPTION STRATEGIC FRAMEWORK 9

2.1 Introduction 92.2 Achievements 92.3 Challenges encountered 122.4 Lessons learnt 132.5 Conclusion 13

CHAPTER 3: INTEGRITY MANAGEMENT WITHIN THE GAUTENG PROVINCE’S MULTI-PILLAR PROGRAMME 14

3.1 Introduction 143.2 Gauteng Province’s ten-pillar programme 14

3.2.1 Radical economic transformation 143.2.2 Decisive spatial transformation 163.2.3 Accelerated social transformation 173.2.4 Transformation of state and governance 193.2.5 Modernisation of the Public Service 193.2.6 Modernisation of the economy 193.2.7 Modernisation of the human settlements and urban developments 203.2.8 Modernisation of public transport infrastructure 213.2.9 Reindustrialisation of Gauteng 223.2.10 Taking the lead in Africa’s new industrial revolution 23

3.3 Procurement Processes 243.4 Conclusion 25

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CHAPTER 4: PREVENTION 26

4.1 Introduction 264.2 Ethical Culture 264.3 Good Governance 274.4 Training and Awareness 284.5 International Instruments, Policies and Regulations 29

4.5.1 International instruments 294.5.2 South African Legislative Framework 30

4.6 Physical and Information Security 314.7 Employee Vetting 324.8 Risk Management 334.9 Conclusion 34

CHAPTER 5: DETECTION 35

5.1 Introduction 355.2 Corruption Database 355.3 Internal Audit 355.4 Management Action 365.5 Whistle-blowing and reporting mechanisms 365.6 Conclusion 37

CHAPTER 6: INVESTIGATION 38

6.1 Introduction 386.2 Gauteng Province’s approach to investigation 386.3 Methods of investigation 396.4 Internal Capacity 406.5 Cooperation with other agencies 416.6 Conclusion 41

CHAPTER 7: RESOLUTION 42

7.1 Introduction 427.2 Disciplinary Action 427.3 Improved Controls 427.4 Civil Recovery 437.5 Criminal Prosecution 447.6 Referring to other agencies 457.7 Conclusion 45

CHAPTER 8: IMPLEMENTATION AND ROLE-PLAYERS 46

8.1 Introduction 468.2 Office of the Premier (Integrity Management Unit) 468.3 Gauteng Provincial Forensic Audits 478.4 Gauteng Department of Community Safety 478.5 Gauteng Department of Cooperative Governance and Traditional Affairs 488.6 Provincial Anti-Corruption Coordinating Committee 488.7 Gauteng Intergovernmental Anti-Corruption Forum 488.8 Gauteng Province Anti-Corruption Forum 498.9 National Anti-Corruption Forum 508.10 Gauteng Public Service Integrity Commissioner 508.11 Conclusion 50

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Gauteng Province Anti-Corruption Strategyii


09 CHAPTER 9: REPORTING AND REVIEW 51

9.1 Introduction 519.2 Gauteng Executive Council 519.3 Monitoring and Evaluation 519.4 Department of Public Service and Administration 529.5 Review of the strategy 529.6 Awareness, training and education 529.7 Communication 529.8 Signing off and approval 529.9 Conclusion 52

LIST OF REFERENCES 53

LIST OF TABLES

Table 1: Transparency International’s CPI Scores from 2008-2014 2Table 2: Details of the Consultative Meetings for the revised Strategy 7Table 3: Task Team Members – Provincial Anti-Corruption Forum 11Table 4: Details of Meetings of the Task Team 11Table 5: Legislative and Regulatory Framework 29Table 6: Nature of cases to be referred to anti-corruption agencies 45

LIST OF DIAGRAMS

Diagram 1: Gauteng PACF Structure 49

Anti-Corruption Strategy Gauteng Province iii


Gauteng Province Anti-Corruption Strategyiv

ABBREVIATIONS

AU African UnionAGSA Auditor-General of South AfricaCMS Case Management SystemCOC Code of ConductCOGTA Cooperative Governance and Traditional AffairsEA Executive AuthorityEXCO Executive Council DG Director-GeneralDPSA Department of Public Service and AdministrationFDF Financial Disclosure FrameworkFPPs Fraud Prevention PlansIIASA Institute of Internal Auditors in South AfricaKPA Key Performance AreaLGACS Local Government Anti-Corruption StrategyLGTS Local Government Turnaround StrategyGACWG Gauteng Anti-Corruption Working GroupGDCS Gauteng Department of Community SafetyGDF Gauteng Department of FinanceGDRT Gauteng Department of Roads and TransportGPG Gauteng Provincial GovernmentHOD Head of Department MACC Minimum Anti-Corruption CapacityMEC Member of the Executive Council MFMA Municipal Finance Management ActMDGs Millennium Development GoalsNACF National Anti-Corruption ForumNACH National Anti-Corruption HotlineNGOs Non-Governmental OrganisationsNIA National Intelligence AgencyNDP National Development PlanNPC National Planning CommissionOECD Organisation of Economic Cooperation and DevelopmentOPSC Office of the Public Service CommissionPAMA Public Administration Management ActPAIA Promotion of Access to Information ActPAJA Promotion of Administrative Justice ActPDA Protected Disclosures ActPFMA Public Finance Management Act PRECCA Prevention and Combating of Corrupt Activities ActPACS Provincial Anti-Corruption StrategyPACF Provincial Anti-Corruption ForumPFA Provincial Forensic AuditsPSACS Public Service Anti-Corruption StrategyPSC Public Service CommissionPSIMF Public Service Integrity Management FrameworkPSR Public Service RegulationsSADC Southern African Development CommunitySAPS South African Police ServiceSCM Supply Chain ManagementSIU Special Investigating Unit SMS Senior Management ServiceTI Transparency InternationalUNCAC United Nations Convention Against CorruptionUNCATOC United Nations Convention Against Transnational Organised Crime


Gauteng Province Anti-Corruption Strategy v

FOREWORD BY THE PREMIER

I wish to reaffirm our strategic vision of building Gauteng into an integrated, inclusive, innovative and sustainable city-region that continues to be the leading economy in the African continent, characterised by smart and green industrial and socio-economic development. Accordingly, we have adopted a ten pillar programme aimed at radically transforming, modernising and re-industrialising the Gauteng City Region. As part of this programme we will also focus on the transformation of the state and governance and the modernisation of the public service. This is the case because we understand fully that there can be no radical socio-economic transformation without the fundamental transformation and modernisation of the state and government institutions.

The Gauteng Provincial Government is of the firm view that it is the responsibility of each citizen in our province to contribute to the fight against corruption. By this contribution, citizens are given the opportunity to join hands and tackle corruption in the province in order to secure and sustain our developmental programmes. The greatest strength of the revised Gauteng Anti-Corruption Strategy (2015-2019) is that the strategic objectives and implementation plan were identified and agreed upon by various sectors of our society during province wide consultations. The Gauteng Provincial Government realised that corruption is a societal problem that requires sectors to work together as reliable partners who are determined to win the war on corruption. Important to note that the Gauteng City Region Anti-Corruption Summit was convened on 07 November 2014 to enable the provincial government to take stock of efforts to combat corruption and adopt anti-corruption strategies that transcends political boundaries and tackles corruption holistically through prevention, detection, investigation and resolution.

I’m therefore pleased to present to you the revised Gauteng Province Anti-Corruption Strategy (2015-2019) which is our accountability statement to the people of Gauteng Province on the anti-corruption strategies that the Gauteng Provincial Government has put in place for implementation over the next five years. The strategic objectives and implementation plan highlighted in this framework will assist to achieve the ten-pillar programme aimed at radically transforming, modernising and re-industrialising the Gauteng City Region. This will further ensure that, as stated in the National Development Plan, by 2030 the language in South Africa shift from fighting corruption to increasing integrity.

The Gauteng Provincial Government, in partnership with other sectors of society, will remain in the forefront of the war against corruption. This will enable us to focus our attention and resources to improving service delivery in order to ensure a better life for all of our citizens in the province.

Together, indeed we are moving the Gauteng City Region forward.

Mr David Makhura Premier: Gauteng Province


Gauteng Province Anti-Corruption Strategyvi

The pillars of this strategy are guided by the Minimum Anti-Corruption Booklet (DPSA) as below:

Ethical culture

Training & awareness

Policies & procedures

Physical & security

Employee vetting

Risk management

PREVENTION

INVESTIGATION

Disciplinary action

Internal Capacity

Co-operation with other agencies

Corruption database

Internal audit

Management action

Whistle-blowing and reporting mechanisms

ANTI-CORRUPTION

STRATEGY

Referring to other agencies

Improved controls

Civil recovery

Criminalprosecution

Disciplinary action, Risk management, Corruption database information - Report to relevant institutional mechanisms

......... Shows Links to functions within a component____ Shows process flow between components & functions

DETECTIONRESOLUTION


Gauteng Province Anti-Corruption Strategy 1

CHAPTER 1: INTRODUCTION1.1 Background

In January 2002, the Department of Public Service and Administration (DPSA) developed the Public Service Anti-Corruption Strategy (PSACS) in order to give effect to the expressed commitment of government to fight corruption in the Public Service (national and provincial)1. Provinces, however, as distinct spheres of government require tailor-made strategies that address issues of corruption in an integrated, holistic and practical manner. Hence, provinces have to develop their own anti-corruption strategic frameworks and implementation programmes that serve as roadmaps for departments to deal with corruption on a daily basis.

The first Gauteng Anti-Corruption Strategic Framework was approved by the Executive Council in 2005 and revised in 2007. In order to address the magnitude and sophisticated means of corruption used by perpetrators to indulge in corrupt activities in society, the framework was further revised in 2009. The purpose of the revised framework in 2009 was to have an approach that is holistic, integrative and pragmatic enough to enhance government’s efforts in intensifying the fight against crime and corruption across Gauteng. Based on an analysis of the most prevalent forms of corruption in Gauteng and taking into account the outcomes and objectives which the strategic framework sought to achieve, a number of inter-related strategic priorities were identified which together lay the basis for an overlapping matrix of interventions to combat corruption. These were:

• Reporting corruption and ensuring effective follow-up and maximum penalties • Promoting ethical procurement • Building a social compact against corruption • Campaigning against corruption and building an ethical Public Service • Developing and implementing sectoral anti-corruption strategies

A Gauteng Anti-Corruption Summit was held in November 2010 and its resolutions were adopted by the Gauteng Provincial Executive Council in March 2011. Since then, concerted efforts have been made to ensure the implementation of the resolutions as adopted in the 2010 Summit. The implementation of the Gauteng Anti-Corruption Strategic Framework and resolutions of the 2010 Gauteng Province Anti-Corruption Summit were monitored through the submission of monthly Programme of Action Reports. The Department of Public Service and Administration also requested regular reports on the implementation of anti-corruption programmes from all government departments on an annual basis in line with the Minimum Anti-Corruption Capacity (MACC) requirements2. Annual oversight reports were thus prepared for the Department of Public Service and Administration on the implementation of the framework in the province, audit committees, the Gauteng Legislature, the Public Service Commission and the Presidency through its Management Performance Assessment Tool (MPAT).

1.2 Problem Statement

The 2010 Gauteng Anti-Corruption Summit proved that government, business partners and various civil society groups need to work collectively to create a societal environment that is not conducive to corruption. The Gauteng Stakeholder Engagement: Ethics Roundtable which was held in May 2013 reiterated, amongst others, that corruption is a multi-stakeholder challenge that requires multi-sectoral collaboration and solutions. Further to this, the Office of the Premier arranged an expanded Provincial Anti-Corruption Coordinating Committee to consider and deliberate on the proposals raised during the Ethics Roundtable in 30 May 2013. There was a strong view that consideration should be explored to form a multi-sectoral anti-corruption structure in the province as stated in the Resolutions of the Summit held in 2010 and the Gauteng Anti-Corruption Strategic Framework (2009-2014).

This shows that there has been an on-going engagement between government and other sectors of society to develop an integrated provincial anti-corruption strategic framework. However, in order to formalise the relationship between various sectors of society in the province, an integrated provincial anti-corruption framework in Gauteng, was developed in consultation with all the sectors.

1 Department of Public Service and Administration. 2002. Public Service Anti-Corruption Strategy, page 6.2 Department of Public Service and Administration. 2002. Minimum Anti-Corruption Capacity requirements.


Gauteng Province Anti-Corruption Strategy2

The process of revising this strategy, in collaboration with all sectors was therefore initiated, by the Gauteng Provincial Government which sought to ensure a continued awareness of the need to prevent and combat corruption, thus embedding and deepening the fight against corruption in Gauteng.

During his inaugral 2014 State of the Province Address, Premier David Makhura announced that his Administration had adopted a multi-pillar programme for the radical transformation, modernisation and reindustrialisation of Gauteng3. The Premier indicated that part of the radical shift in government involves dealing with and eradicating corruption among public officials and public servants, including in the private sector. The Premier further promised to introduce measures to strengthen the integrity of public institutions and public processes so that fraud and corruption are prevented and detected early in the value chain to prevent losses. The Premier stated during the 2014 Gauteng Senior Management Service Conference that an Integrity Management Office will be established in the Office of the Premier to strengthen clean governance and enhance integrity across government departments and institutions.

Furthermore, the pillar on the modernisation of the Public Service is supported by the National Development Plan which indicates that South Africa suffers from high levels of corruption that undermine the rule of law and hinder development and socio-economic transformation. The report further suggests that overcoming corruption and the lack of accountability in society requires political will; sound governance arrangements; a solid legal foundation and an active citizenry that holds public officials accountable. These measures will assist to ensure that by 2030, the language in South Africa shifts from fighting corruption to increasing integrity i.e. from a reactive approach to a more proactive approach with a zero tolerance approach to corruption in 20304.

Since 2013 the new and proposed legislation and regulations being introduced at the national sphere of government also focus on building integrity and promoting an ethical culture within the public service. The Public Service Integrity Management Framework which has been introduced by the Department of Public Service and Administration and approved by National Cabinet in October 2013 seeks to strengthen measures regulating ethical conduct in the Public Service5.

Additionally, the Public Administration Management Act seeks to provide for the organisation, management, functioning and personnel related matters in the public administration for all three spheres of government6. The implications for anti-corruption are in Chapter 6 of the Public Administration Management Act which deal with ethics, integrity and discipline in the Public Service. The Public Administration Management Act prohibits employees from doing business with government including prohibition from being a director of a company doing business with the state. The Public Administration Management Act further requires that an employee must, in the prescribed manner, disclose to the relevant Head of the institution all his or her financial interests and the financial interests of his or her spouse and a person living with that person as if they were married to each other. Failure by an employee to comply constitutes misconduct. These include amongst others the following:

(a) shares and other financial interests in an entity;(b) sponsorships; (c) gifts above the prescribed value, other than gifts received from a family member; (d) benefits; and (e) immovable property.

Transparency International, which is a global coalition against corruption, conducts the Corruption Perception Index to measure the perceived levels of public sector corruption in a number of countries7. The results have been as follows:

Table 1: Transparency International’s CPI Scores from 2008-2014

YEAR NUMBER OF COUNTRIES SOUTH AFRICA’S POSITION

SCORE

2008 180 54 4.9

2009 180 55 4.7

2010 178 54 4.5

3 Gauteng Provincial Government. 2014. State of the Province Address, page 3.4 The National Planning Commission. 2012. National Development Plan.5 Department of Public Service and Administration. 2013. Public Service Integrity Management Framework.6 Republic of South Africa. 2014. Public Administration Management Act, 2014 (Act 11 of 2014).7 Transparency International’s Corruption Perception Indexes from 2008-2014 available at www.ti.org



YEAR NUMBER OF COUNTRIES SOUTH AFRICA’S POSITION

SCORE

2011 183 64 4.1

2012 174 69 43

2013 177 72 42

2014 175 67 44Compiled from the Transparency International’s Corruption Perception Indexes from 2008 – 2014.

The consistent continued decline of South Africa’s rating throughout the years should be a concern for all the citizens of this country. Table 1 above shows that public perceptions about corruption in the public sector in South Africa increased slightly and gradually between 2008 and 2013 (a lower score indicates higher perceptions of corruption). It should be noted that an increase in the perceptions of corruption does not necessarily mean that corruption has increased – it could mean that more incidents of corruption are being exposed, thereby increasing public awareness. Gauteng Province, as the economic hub of the country, has committed to put in place proactive measures to prevent corruption.

This is further highlighted in the Twenty Year Review – South Africa (1994 – 2014) which was prepared by the Presidency to review government’s performance through a twenty-year lens, elaborating on the achievements and progress made in the first twenty years of our democratic era. The Twenty Year Review further warns that corruption impedes service delivery and undermines public confidence in the state and highlights that corruption is partly a symptom of weak management and operations systems, which create the space for corruption to thrive8.

The Gauteng Provincial Forensic Audits which is responsible for administering, analysing and investigating the National Anti-Corruption Hotline (NACH) cases which are referred to the Gauteng Provincial Government by the Public Service Commission. The rate of case resolution in 2009 was at 23%. The Gauteng Provincial Forensic Audits, supported by departments with internal investigative capacity has since then ensured that of the 1706 National Anti-Corruption Hotline cases received from the Public Service Commission from 2005 to 31 January 2015, there are 735 cases outstanding and 1014 cases resolved. The percentage (%) of referrals resolved to date is 58% of total cases in the province. The Quality of Life Survey indicates that the perceptions of corruption per municipality is high and believe that this is a threat to democracy. The Gauteng Provincial Government has therefore indicated during the Gauteng Anti-Corruption Summit held in November 2014 that the immediate task is to increase the rate of resolution for reported cases of alleged corruption by ensuring that all reported cases of alleged corruption are investigated and that maximum penalties are imposed. An analysis of NACH cases indicates that the top five (5) manifestations of corruption in Gauteng are:

• Fraud and bribery • Abuse of government resources • Criminal conduct • Procurement irregularities and • RDP housing fraud

Once allegations of corruption have been investigated and finalised, Labour Relations Units in departments have a key role to play in implementing the recommendations for discipline in investigation reports. This is a function that requires specific competency and line managers must collaborate with labour relations personnel to facilitate and finalise disciplinary processes. One of the common challenges is the lack of guidelines on appropriate sanctions for specific transgressions. Thus sanctions applied for the same transgression may vary from department to department.

The Office of the Premier as the central coordinator receives quarterly reports on the management of discipline from all provincial departments. This business unit analyses reports and also reflects on challenges faced by departments. It goes further to provide guidance through the Gauteng Provincial Government Labour Relations Forum on steps to be taken to promote ethical behaviour. It should however, be emphasised that this business unit has no direct control on the period taken by departments to conclude on their disciplinary cases. Departments should consider recommendations made by organisations such as the Public Service Commission and implement mechanisms to improve labour relations business processes.

8 Republic of South Africa. 2014. Twenty-Year Review – South Africa (2004-2014), page 35.



• Development of a Departmental Manual: departments must develop a Departmental Manual to guide users through the steps involved in labour relations in general and the management of discipline in particular.

• Review of Departmental policies and Practices: Departmental policies and procedures on disciplinary processes should be developed and implemented as a matter of urgency.

• Establishment of an inter-departmental database on sanctions: The Department of Public Service and Administration should consider developing and implementing an Inter-Departmental database that would ensure that there is monitoring of sanctions imposed across the Public Service. Departments should have access to this database to allow them to update their internal policies and ensure that there is consistency in sanctions imposed across the Public Service.

• Building capacity: A common theme in this study was the issue concerning departmental capacity to deal with disciplinary cases in a just manner. The problems indicated and experienced around capacity constraints were multifaceted and far-reaching, and are subsequently dealt with below:

- Building line function capacity: Departments generally should refine training content to focus on problems identified through their own monitoring and evaluation. This training should be repeated on a regular basis to ensure good practices and to off-set the effects of staff turnover in the knowledge and skills base of departments.

- Building overall knowledge, understanding and skills for the management of discipline: Departmental role players are not adequately versed in the disciplinary procedure, and this spurs inefficiency and improper implementation. Consideration should be given to providing training in respect of the legal and procedural prescripts pertaining to discipline, together with an explanation of substantive issues and the legal dictums that underlie such procedures.

• Provision of Strategic and expert support: The PSC is of the view that the staff support components have a key responsibility to ensure that human resource and labour relations practices are managed in an effective manner that would inhibit the possibility of unfairness and inequity, or litigation arising.

Information management and disciplinary oversight: Departmental oversight needs to be improved. Monthly discipline reports, including discipline case progress, should form part of the informal departmental reporting on discipline trends. Such monitoring responsibility should be specifically located within the organisation to ensure that the trends and their likely impact are fed into the decision-making processes of the organisation.

The Report on the Overview of the State of Local Government in South Africa identified fraud and corruption as one of the challenges that hamper the sustainable provision of service delivery in most municipalities across the country9. The Local Government Turnaround Strategy identified that the root cause of much municipal failure has been determined as being due to, amongst others, a breakdown of values at a societal level that is breeding unethical behaviour, corruption, the culture of non-payment and a lack of accountability. This is a worrying finding especially considering that the Local Government Anti-Corruption Strategy seeks to “promote a culture of good and ethical governance that is intolerant to corrupt and fraudulent behaviour in the local government sector”10.

The local government sphere also has a role to play in fighting corruption in the province. The Auditor-General’s Report on the Audit Outcomes of Local Government – Municipal Finance Management Act 2012 – 2013 shows a significant improvement in the overall audit outcomes compared to previous years. Success stories in Gauteng are witnessed in the Sedibeng District Municipality who achieved a clean audit outcome, the Johannesburg Social Housing Company and Johannesburg Fresh Produce for maintaining their clean audit outcomes and the City of Johannesburg, Johannesburg City Power and Johannesburg Water who all improved to attain financially unqualified opinions with findings on compliance and predetermined objectives11. The Auditor-General of South Africa has further given the Ekurhuleni Metropolitan Municipality another unqualified audit opinion and has maintained unqualified financial audit opinions over the past five financial years (2008/09 to 2012/13). The progress in the audit outcomes in Local Government begin to show sound financial management systems and processes are being institutionalised to improve accountability on financial transactions.

9 Department of Cooperative Governance and Traditional Affairs. 2009. Report on the Overview of the State of Local Government in South Africa.10 Department of Cooperative Governance and Traditional Affairs. 2009. The Local Government Turnaround Strategy, page 18.11 Auditor-General of South Africa. 2014. Report on the Audit Outcomes of Local Government – Municipal Finance Management Act 2012 – 2013.



The Auditor-General is attributing the improvements in Gauteng Province largely to strong drivers of internal controls being supported by commendable leadership and governance structures. These success stories in municipalities should be used as a benchmark for the rest of the municipalities that are not improving on their audit outcomes and also focus on the implementation of commitments and recommendations as advised by the Auditor-General.

The National Department of Cooperative Governance and Traditional Affairs has set up an Anti-Corruption Inspectorate to promote ethics and address corruption and fraud in municipalities via Provincial Working Groups. The department has, amongst others identified that municipalities also need to be driven by appropriately skilled personnel and their correct placement and there are too many instances both of inappropriate placements and skills not measuring up to requirements. This is compounded by widespread instances of rent seeking and corruption amongst public representatives and business, reflecting a broader breakdown in the values and good governance principles that should be guiding elected and appointed officials to run the local government system and those that do business with government.

The National Department of Cooperative Governance has therefore introduced the Back to Basics – Programme for Change12 in order to improve the functioning of municipalities to better serve communities by getting the basics right. Priority Four of the Back to Basics Programme intends to develop a targeted and vigorous response to fraud and corruption. Supply chain management practices in municipalities will be scrutinised and decisive action will be taken where corruption and mismanagement have been identified. This will ensure that municipalities demonstrate good governance and administration i.e. cut wastage, spend public funds prudently, hire competent staff, and ensure transparency and accountability.

The provincial governments are also urged to support municipalities to implement good governance measures and sound financial management by, amongst others, implementing the following:

• Member of the Executive Council responsible for local government, to take action against those who contravene the Code of Conduct for Councillors.

• National and Provincial CoGTAs and Provincial Treasuries to assess and address capacity deficiencies of municipalities to develop and implement audit and post audit action plans.

• Provincial CoGTAs and Treasuries to assess and address capacity deficiencies of municipalities to develop and implement procurement plans.

• Provincial Treasuries to support municipalities in the development and implementation of financial recovery plans.

The members of the South African Local Government Association which comprise more than 278 municipalities signed the pledge to fight maladministration and act swiftly on allegations and incidents of corruption and further deepen the quality of local government. In order to ensure good governance and sound financial management, the Back to Basics – Programme for Change also encourages municipalities to, amongst others implement the following:

• Ensure transparency, accountability and regular engagements with communities. • Clear delineation of roles and responsibilities between key leadership structures. • Functional oversight committees must be in place e.g. Audit Committee and Municipal Public Accounts

Committees. • Develop anti-corruption measures and strategy to ensure regular reporting on cases of fraud and corruption

both administratively and politically. • All municipalities must have a functional financial management system which includes rigorous internal

controls. • Cut wasteful expenditure and act decisively against fraud and corruption. • Supply Chain Management structures and controls must be in place according to regulations and with

appropriate oversight. • Ensure that post Audit Action Plans are addressed.

The Local Government Anti-Corruption Strategy indicates that the efforts to fight corruption should also emphasise individual accountability as Section 173 of the Municipal Finance Management Act provides for the following people to be held criminally liable in their individual capacity for among other things:

12 Department of Cooperative Governance and Traditional Affairs. 2014. Back to Basics – Programme for Change. Available at www.cogta.gov.za as at 18 February 2015.



• Accounting Officer who deliberately or due to gross negligence do not implement certain provisions of the MFMA;

• Finance managers with delegated responsibilities - deliberately or due to gross negligence not implementing requirements of their delegations;

• Councillors who interfere with the implementation of the MFMA. The municipality should bring criminal charges against individuals who wilfully corrupt the municipality.

The business sector, as a key partner in the delivery of services, has a vital role to play to ensure the success of the efforts to fight corruption in the province. The Public Service Commission’s Report on the Profiling and Analysis of the most Common Manifestations of Corruption and its Related Risks in the Public Service (2011) supported by the analysis of cases conducted by the Gauteng Provincial Forensic Audits at the Gauteng Department of Finance, which administers the alleged cases of corruption in Gauteng, revealed that one of the most common manifestations of corruption in the province is around procurement irregularities13.

The business sector should be guided by the Companies Act, 71 of 2008 which encourages transparency and a high standard of corporate governance and provide for the balancing of rights and obligations of shareholders and directors. In order to improve ethical leadership and corporate citizenship, the King III Report on Governance for South Africa (2009) recommends that the board of companies should, amongst others, do the following14:

• Provide effective leadership based on an ethical foundation • Ensure that the company is and is seen to be a responsible corporate citizen • Ensure that the company’s ethics are managed effectively

The findings by the Competition Commission of South Africa on the role of some of the big corporations in the building of the stadiums during the 2010 Soccer World Cup are a major concern for all in the country. All sectors, with business included, agree that compliance with corporate governance measures in the business sector is critical and that business has a paramount role to play in fighting corruption. The arrangement of price fixing and the formation of cartels should be discouraged. All sectors should continue working together to ensure that such practices are discouraged and that those implicated are punished accordingly. The Competition Act, Section 7(b) (iii) encourages transparency and high standards of corporate governance as appropriate, given the significant role of enterprises within the social and economic life of the nation.

Considering that business sector plays an important role in assisting government to deliver services, the Gauteng Provincial Government should also seek to formalise the working relations with organised business formations like Business Unity South Africa, Black Business Council, Johannesburg Chamber of Commerce and informal traders. This will be achieved through the Gauteng Province Anti-Corruption Forum which will develop a joint programme of action i.e. integrity pacts, good practice guide on internal controls and compliance, development of an anti-corruption guide for small-medium and micro enterprises, anti-corruption education and awareness programmes.

Both civil society and labour sectors are also not immune to the challenges around the fight against corruption. Section 7(h) of the Companies Act, 71 of 2008 provides for the formation, operation and accountability of non-profit companies in a manner designed to promote, support and enhance the capacity of such companies to perform their functions15. Management of these two sectors should provide for an environment in which non-profit organisations can flourish as guided by the Non-Profit Organisation Act, No 71 of 199716. However, recent allegations around the management of funds for some of the non-profit organisations require that the Department of Social Development have a Code of Good Practice for the South African Non-profit Organisations which, amongst others, encourages non-profit organisations to accept the responsibilities of ensuring that they respond to and maintain high standards of practice in, to name a few: good governance; effective management; optimisation of resources; productive relationships with government; careful administration of their organisations and ethical behaviour17. Labour federations are also encouraged to ensure responsible, accountable and transparent financial management.

13 Public Service Commission. 2011. Report on the Profiling and Analysis of the most Common Manifestations of Corruption and its Related Risks in the Public Service.14 Republic of South Africa. 2009. King III Report on Governance for South Africa.15 Republic of South Africa. 2008. Companies Act, 2008 (71 of 2008).16 Republic of South Africa. 1997. Non-Profit Organisation Act, 1997 (Act 71 of 1997).17 Department of Social Development. 2004. Code of Good Practice for the South African Non-profit Organisations.



Corruption Watch defines corruption as the “abuse of public resources or public power for personal gain”. According to the 2014 Corruption Watch Annual Report there were two thousand seven hundred and fourteen (2714) complaints of corruption during 2014 – which translates to an average of seven reports received a day18. Gauteng Province accounted for 44% of the reports received during 2014. It is important to note that since 2012, Corruption Watch has received a number of reports of corruption in schools. Most of the complaints stem from Gauteng with the majority from schools in Johannesburg. The types of corruption reported for schools include financial mismanagement, theft of goods, tender corruption and employment irregularities. Corruption Watch also indicated that corruption in the housing sector occurs in the provincial and local spheres of government, with a significant number of the cases reported in the housing sector coming from Gauteng.

It is key to note is that citizens of our province, as confirmed by the latest census results which were released by Statistics South Africa, have greater access to household technology like phones, e-mails and faxes as compared to other provinces. This gives them means to report corruption as compared to those residing in other provinces. Secondly, the Gauteng Provincial Government, through the Office of the Premier, has intensified its anti-corruption awareness programmes. The increase in the number of tip-offs is, therefore, viewed as a positive response to the call to citizens to report any suspected alleged corrupt activities.

The challenges indicated above require a collaborative approach by all sectors of society to fight corruption. If left unchecked, consequences could be dire. A wider consultation process was prepared, in 2014, so that development of the strategy could be communicated and agreed upon in a form of an integrated provincial anti-corruption strategy by all sectors of society as corruption is found in all sectors. Hence, this action-oriented Gauteng Anti-Corruption Strategy has been developed. The development of this strategy was different as compared to previous occasions. Rather than government imposing a strategy to other sectors and expecting implementation, this strategy caters inputs from various sectors and for the first time is co-owned by a wider community of the province.

1.3 Methodology

In developing this strategy, the Office of the Premier arranged several consultative meetings with a range of stakeholders, including the Gauteng Provincial Government departments, civil society, labour, municipalities and business community, to ensure that their inputs are incorporated on the revised provincial anti-corruption strategy. In this regard, meetings were held as follows:

Table 2: Details of Consultative Meetings for the revised Strategy

SECTOR DATE TIME VENUEDepartments 11 June 2014 09h00 – 14h00 GDF Boardroom, Johannesburg

Departments 20 June 2014 09h00 – 13h00 11th Floor Boardroom – GDRT, Johannesburg

Civil Society 03 July 2014 09h00 – 14h00 Protea Hotel – Parktonian All Suite, Braamfontein

Labour 10 July 2014 09h00 – 14h00 Mapungubwe Hotel, Johannesburg

Municipalities 17 July 2014 09h00 – 14h00 Sunnyside Park Hotel, Parktown

Business 07 August 2014 09h00 – 14h00 Pyramid Conference Centre, Johannesburg

Summit 07 November 2014 09h00 – 17h00 Gallagher Convention Centre, Midrand

Labour 12 February 2015 10h00 – 13h00 4th Floor Boardroom – Office of the Premier, Johannesburg

The draft strategy was compiled by the Office of the Premier and forwarded to all sectors to confirm if their contributions had been properly amalgamated and to further afford them another opportunity for additional ideas. The inputs, reflections and discussions that took place during this consultative process have significantly enriched this multi-sectoral provincial strategy.

Important to note that this strategy applies to all elements of corruption involving members of the following sectors in Gauteng:

18 Corruption Watch. 2014. Corruption Watch Annual Report page 8.



• Political principals; • Business Sector; • Labour Federations; • Civil Society Sector; and • Public Sector (provincial departments and municipalities).

1.4 Objectives of the Strategy

The specific objectives of this strategy are as follows:

• To collaborate with sectors to introduce measures to strengthen the integrity of institutions and including public institutions processes and public processes

• To improve accountability, efficiency and effective administration within sectors of society in the province • To intensify anti-corruption awareness programmes and development of anti-corruption capacity

throughout all sectors • To promote a culture of professional ethics and good governance in all sectors • To develop and implement a multi-sectoral anti-corruption programme of action through the multi-sectoral

Gauteng Province Anti-Corruption Forum

1.5 Outline of the Strategy

The structure of the strategy is as follows:

• Chapter 2: Review – summarises the review of the province in implementing the 2009-2014 Gauteng Anti-Corruption Strategic Framework

• Chapter 3 – discusses integrity management within the Gauteng ten-pillar programme

• Chapter 4: Prevention – presents prevention procedures to be put in place by all stakeholders

• Chapter 5: Detection – summarises detection process to ensure that systems are in place to effectively deal with alleged cases of corruption in a structure way

• Chapter 6: Investigation – provides a structured approach in dealing with resolution of cases to ensure recovery of losses

• Chapter 7: Resolution – outlines the provincial investigation plan for alleged cases of corruption

• Chapter 8: Implementation and Role-players – contains implementation process and role-players

• Chapter 9: Reporting and Review – encompasses the review and reporting of the strategy that will require assessment of the impact of the strategy and reporting to relevant authorities



CHAPTER 2: REVIEW OF THE 2009-2014 GAUTENG

ANTI-CORRUPTION STRATEGIC FRAMEWORK

2.1 Introduction

This chapter summarises the review of the province in implementing the Gauteng Anti-Corruption Strategic Framework (2009-2014). It was deemed necessary to outline the experiences encountered to assist in planning for the future. The brief review is presented in four parts, namely, achievements, key success factors, challenges encountered and lessons learnt.

2.2 Achievements

The following were achieved against the respective strategic priorities:

(i) Reporting corruption and ensuring effective follow-up and maximum penalties

• Increased rate of case resolution: The Gauteng Provincial Forensic Audits at Gauteng Treasury is responsible amongst others to administer, analyse and investigate the National Anti-Corruption Hotline (NACH) cases which are referred to Gauteng by the Public Service Commission. The rate of case resolution in 2009 was at 23%. The Gauteng Provincial Forensic Audits, supported by departments with internal investigative capacity has since then ensured that of the 1706 National Anti-Corruption Hotline cases received from the Public Service Commission from 2005 to 31 January 2015, there are 735 cases outstanding and 1014 cases resolved. The percentage of referrals resolved to date is 58% of total cases in the province. Analysis of NACH cases indicates that the top five (5) manifestations of corruption in Gauteng are:

- Fraud and bribery - Abuse of government resources - Criminal conduct - Procurement irregularities and - RDP housing fraud

• Finalisation of the State of the Province Address (2012) Cases: Important to note that as it was indicated during the 2012 State of the Province Address that fraud and corruption by its nature undermines effective service delivery. Through the diligent work of employees and the public, the Gauteng Provincial Government had unearthed over hundred and fifty (150) cases of alleged fraud and corruption ranging from procurement irregularities and financial misconduct to fraud and theft of medication and food supplies. The Office of the Premier had, therefore, also prioritised finalisation of these cases as provincial commitment was made during the 2012 State of the Province Address. One hundred and fifty-four (154) of the one hundred and sixty six (166) internal cases which were reported in 2012 were resolved. This indicates a 93% resolution rate of internal cases.

• Development of the web-based Case Management System: The Gauteng Provincial Government has developed the web-based case management system for the National Anti-Corruption Hotline cases that are administered, analysed and investigated by the Gauteng Provincial Forensic Audits at Gauteng Treasury and other Gauteng Provincial Government departments with internal investigative capacity. The cases recorded in the data registers of departments do not always correspond with those contained in the National Anti-Corruption Hotline schedules. This in turn raises concerns about the accuracy, completeness and validity of the data contained in these data registers as there are discrepancies in the figures in the provincial database, when compared to the national database. This discrepancy is also found between departmental databases and the official provincial master database. This necessitated the development of the case management system to make the processes of handling cases easier.



• Development of a database for internal cases: In order to ensure that coordinated reporting and complete reports are provided to the various oversight committees, the Gauteng Provincial Government departments were requested to submit a detailed list and a status update on all internal fraud cases on a quarterly basis to the Office of the Premier. Important to note is that these are not the cases reported on the National Anti-Corruption Hotline that are received by Gauteng Treasury for management, but rather, these emanate from within Gauteng Provincial Government departments.

• Improving investigative capacity: In order to address capacity building, skills development and training for investigators in the Gauteng Provincial Government departments, the Office of the Premier arranged continuous advanced capacity building programmes that are organised specifically for forty (40) senior investigators in the province. It is hoped that this capacity building intervention will improve the quality and pace of investigations in departments, eliminate backlogs and increase the rate of case resolution within the Gauteng Provincial Government departments. Furthermore, the Office of the Premier assisted junior investigators who are responsible for the National Anti-Corruption Hotline cases within the Gauteng Provincial Government departments. Thirty (30) junior investigators were enrolled to do the National Certificate on Resolving Crime to capacitate them as they have minimal experience in the field of investigation.

• Anti-Corruption Investigation Training: In order to improve implementation and enforcement of laws, regulations and plans to combat corruption in the public service and build a more ethical public service and as part of providing capacity building to officials from municipalities and departments in Gauteng, the Office of the Premier in partnership with the Department of Public Service and Administration rolled-out the Anti-Corruption Investigation Training. This training is designed to increase the competency of internal investigators to investigate corruption and related offences.

(ii) Promoting ethical procurement

• Fraud and Corruption Risks Assessment were conducted on an annual basis by the Gauteng Provincial Forensic Audits.

• Declaration of interests by Supply Chain Management officials and those serving on the Department Acquisition Committees were being prioritised by the Heads of Department.

• Training for Supply Chain Management officials was arranged on Ethical Decision Making • Electronic Submission of Financial Disclosure Framework was implemented in partnership with the

Department of Public Service and Administration. • Remunerative Work Outside Public Service is continuously monitored at departmental level.

(iii) Building a social compact against corruption

• Ethics Roundtable: Raising awareness on professional ethics in the public service also forms part of the work of the Office of the Premier. In pursuance of implementing this task, a one-day Ethics Roundtable on raising awareness on ethical issues in the public service particularly for the Gauteng Provincial Government. The Gauteng Stakeholder Engagement: Ethics Roundtable which was held on 30 May 2013 reiterated, amongst others, that corruption is a multi-stakeholder challenge that requires multi-sectoral collaboration and solutions.

• Expanded Provincial Anti-Corruption Coordinating Committee: The Office of the Premier therefore deemed it appropriate to arrange an expanded Provincial Anti-Corruption Coordinating Committee to consider and deliberate on the proposals raised during the Ethics Roundtable in 30 May 2013. It was envisaged that this expanded committee that include all sectors would develop a Joint Anti-Corruption Programme of Action that will ensure that the anti-corruption efforts in the province are co-owned. The Secretariat of the National Anti-Corruption Forum and the North West Provincial Anti-Corruption Forum indicated some challenges on the formation of a structure that called on diverse sectors to work together.

• Provincial Anti-Corruption Forum: To give effect to the resolution which was taken at the Gauteng Anti-Corruption Summit in 2009 of implementing a multi-sectoral approach to anti-corruption initiatives and to work together more across all sectors, the expanded Provincial Coordinating Committee meeting held 28 June 2013 agreed that a Task Team, comprised of representatives from the civil society, business, unions and public sectors should be established. It was also agreed that the Task Team would work with the Office of the Premier to deliberate on the best approach for the formation of the multi-sectoral provincial anti-corruption forum. The following officials were nominated by their respective sectors to serve on the Task Team:



Table 3: Task Team Members – Provincial Anti-Corruption Forum

SECTOR OFFICIALSCivil Society Mr Neo Chaka (Coordinator: Gauteng – Moral Regeneration Movement)

Mr Kris Dobie (Manager: Ethics Institute of South Africa)

Business Ms Nosisa Fubu (KPMG)

Mr Peter Goss (Black Business Council formerly with the Business Unity South Africa)

Public Ms Papadi Makhetha (Director: Anti-Fraud and Corruption) – Gauteng Department of Human Settlements

Mr Azwianewi Mulaudzi (Head: Gauteng Provincial Forensic Audits)

Ms Marie-Louise Moodie (Deputy Director-General: Office of the Premier)

The Task Team met on three occasions to discuss its mandate. In this regard, meetings were held as follows:

Table 4: Details of Meetings of the Task Team

DATE TIME VENUE16 August 2013 09h00 – 12h00 PriceWaterhouseCoopers, Sunninghill

23 October 2013 13h00 – 15h00 Crown Plaza, Rosebank

14 February 2014 09h00 – 12h00 Constitution Hill, Johannesburg

These meetings discussed the background, objectives, representation, governance structure, role of the Secretariat and consultation process for the formation of a multi-sectoral anti-corruption forum in Gauteng. Subsequent to these meetings, the Office of the Premier hosted a meeting on 14 March 2014 to present draft strategic discussion documents (Memorandum of Understanding, Charter, Road Map and Quick-Win Projects) as prepared by the Task Team for the formation of the Provincial Anti-Corruption Forum.

(iv) Ethics and anti-corruption awareness campaign

• Anti-corruption forums: The province has set aside continued platforms for dialogue to interrogate our education system and policies and critically assess their ability to inculcate an ethical value system. There are two formal anti-corruption forums in the province. Namely, the Gauteng Provincial Anti-Corruption Coordinating Committee and Gauteng Province Intergovernmental Anti-Corruption Workshops which are hosted to support departments and municipalities to improve minimum anti-corruption capacity, development of sectoral strategies, monitoring implementation of internal policies and provision of guidance on ethics and anti-corruption management. As indicated above, there was also focus on the formation of the Provincial Anti-Corruption Forum which was launched during the Gauteng City Region held on 07 November 2014.

• Consultative meetings: In order to address lack of dedicated focus in fighting corruption, the Office of the Premier is supporting the Gauteng Provincial Government departments to implement their anti-corruption programmes. The Office of the Premier arranged quarterly consultative meetings on an on-going basis with individual departments.

• Anti-corruption communication: In order to promote ethical behaviour in the workplace, to educate the Gauteng Provincial Government employees and the public at large about the anti-fraud and corruption regulatory framework in a manner that will improve rapid and effective response to cases, the Office of the Premier is fast tracking implementation of the Gauteng Anti-Corruption Communication Strategy. This includes distribution of the Code of Conduct leaflets, anti-corruption posters, whistle-blowing policy booklets and Gauteng Anti-Corruption Strategic Framework booklets.

(v) Campaigning against corruption and building an ethical public service

• Leadership Seminars: In order for the public service ethics training programme to be implemented in the province, particularly for the Senior Management Service members, the Office of the Premier in collaboration with the Gauteng City Region Academy arranged Leadership Seminars for Senior Management Service members. There were six sessions of the leadership seminars held. Seminars included discussions on the ethical leadership culture and Gauteng Anti-Corruption Strategic Framework, amongst others, reflecting on whether or not the current organisational environment is conducive for ethical leadership, do managers and employees apply organisational values, and the role of leadership in building a culture of integrity in the Public Service.



• Ethics Officer Certification Programme: The Office of the Premier is also assisting the Gauteng Provincial Government departments to tighten their measures for promotion of professional ethics, particularly considering the approval of the Public Service Integrity Management Framework by National Cabinet. This assistance has also been extended to municipalities in the province. The purpose of the approved Public Service Integrity Management Framework is to strengthen measures for managing unethical conduct and promoting integrity in the Public Service. It is for this reason that the Office of the Premier coordinated the Ethics Officer Certification Programme for seventy (70) officials from municipalities and departments in Gauteng in order to prepare them to implement both the Public Service Integrity Management Framework and Gauteng Anti-Corruption Strategic Framework.

• Public Service Ethics Training Programme: The Office of the Premier is fast tracking the implementation of the public service ethics training programme. This is an important venture particularly considering the approval of the Public Service Integrity Management Framework which aims to strengthen measures for managing unethical conduct and promoting integrity in the Public Service. It is for this reason that the Office of the Premier in partnership with the Ethics Institute of South Africa coordinated the Ethics Train the Trainer Programme from 25-27 March 2014. This three-day training-of-trainers session discussed and provided the Ethics Workshop Toolkit that serve as a resource to the trainers who are tasked with conducting training in their respective departments.

• Ethical Decision Making for Senior Management Service (SMS) members: In order to sensitise the Senior

Management Service members through awareness, training and education, the Office of the Premier arranged Ethical Decision Making Workshop to espouse professional ethics and to provide leadership to other employees. These workshops assisted senior managers with the following:

- Core ethics concepts and distinctions; - The regulatory environment: main ethics related laws and regulations; - Building an ethical culture in the organisation; and - Ethical decision-making in the workplace.

• Anti-Corruption Training: In order to improve implementation and enforcement of laws, regulations and plans to combat corruption in the public service and build a more ethical public service and as part of providing capacity building to officials from municipalities and departments in Gauteng. The Office of the Premier in collaboration with the Department of Public Service and Administration and School of Government coordinated training for officials from departments for NQF Level 4 (Anti-Corruption for Practioners).

• Governance Workshops: The Office of the Premier also supported the Departments of Human Settlement and Cooperative Governance and Traditional Affairs to educate all their employees on good governance and compliance with relevant laws and regulations in the Public Service.

• Gauteng City Region Anti-Corruption Summit: The 2014 Summit comprised a plenary session with presentations and inputs from the Executive Mayor of the Johannesburg Metropolitan Council, Premier of Gauteng, Kenyan case study by the Kenyan Ethics and Anti-Corruption Commission, the role of leadership in ensuring an ethical culture by the School of Business Leadership at the University of South Africa and building an ethical public service by the Department of Public Service and Administration. Further to this, there were four commissions deliberating on building integrity, stimulating good governance and accountability, promoting ethical procurement and improving investigations and prosecution. Leaders of sectors together with all the delegates who attended the Summit signed an Integrity Pledge, as committed residents of Gauteng, to strive to serve our province and its people with respect, dignity and integrity, and consistent with the values and principles of the Constitution.

2.3 Challenges encountered

The implementation of the Gauteng Anti-Corruption Strategic Framework (2000-2014) encountered the following challenges:

• Financial and assets disclosure for officials at levels 1-12: non-existence of a legislation compelling officials at lower levels to disclose their finances and assets proved to be a setback on the fight against corruption.

• Senior departmental representatives at anti-corruption forums: Heads of Departments should ensure consistent attendance of senior officials nominated to attend provincial anti-corruption forums rather than sending officials who are not at decision making level.



• Operational challenges: these included budgetary constraints, inadequate staff, establishing dedicated anti-corruption units within departments and low capacities in terms of skills for some departments as well as insufficient support from senior management within our departments.

• Investigation challenges: there were still high numbers of cases of alleged corruption which remain unresolved on the provincial database. This dampened high public expectation which affected the war against corruption. Speedily resolution of cases needs to be prioritised to encourage public in reporting future incidents of corruption.

• Anti-corruption indicators in the performance contracts: inclusion of anti-corruption indicators in the performance contracts of all our line departments, particular our senior officials i.e. Heads of Department and Director-General. This will generate commitment in mainstreaming corruption prevention strategies. This will also enhance the level of transparency and accountability in our departments.

• Implementation of the recommendations of research reports: departments must prioritise implementation of the recommendations of the research reports released by the Public Service Commission and Auditor-General as they contain corrective measures against corrupt activities.

2.4 Lessons learnt

The following lessons were learnt:

• Continuous capacity building programmes: there is a need for continuous building of capacity for prevention, detection, investigation and resolution of corrupt activities in the province. This provides anti-corruption practitioners with the modern anti-corruption techniques.

• Dedicated anti-corruption personnel: components of the sectors of society need to have dedicated personnel to implement anti-corruption programmes rather than having this function as an added deliverable to risk management units.

• Research is necessary: there is a need for research to strengthen anti-corruption strategies and programmes.

• Partnerships are important: corruption is a systemic and societal problem that requires a comprehensive, holistic and united response and action by different sectors of society.

• Recruitment: there is a need to recruit qualified, competent, dedicated and experienced human resources to intensify the fight against corruption in the province. This will make sure availability of caliber of officials who have capacity to address challenges of corruption.

• Alignment of databases for cases of alleged corruption: The cases recorded in the data registers of departments do not always correspond with those contained in the National Anti-Corruption Hotline schedules. This in turn raises concerns about the accuracy, completeness and validity of the data contained in these data registers as there are discrepancies in the figures in the provincial database, when compared to the national database. This discrepancy is also found between departmental databases and the official provincial master database. Therefore, databases need to be updated continuously and analytical reports should be generated and these should inform evidence-based policy decisions.

2.5 Conclusion

This chapter summarised the review of the province in implementing the Gauteng Anti-Corruption Strategic Framework (2009-2014). The brief review was presented in four parts, namely, achievements, key success factors, challenges encountered and lessons learnt. The next chapter will discuss integrity management within the Gauteng Province’s multi-pillar programme of radical transformation, modernisation and reindustrialisation of Gauteng.



CHAPTER 3:INTEGRITY MANAGEMENT WITHIN THE GAUTENG PROVINCE’S MULTI-PILLAR PROGRAMME

3.1 Introduction

The purpose of this chapter is to discuss integrity management within the Gauteng Province’s multi-pillar programme of radical transformation, modernisation and reindustrialisation of Gauteng. These pillars are:

• Radical economic transformation • Decisive spatial transformation • Accelerated social transformation • Transformation of the state and governance • Modernisation of the public service • Modernisation of the economy • Modernisation of human settlements and urban development • Modernisation of public transport infrastructure • Reindustrialisation of Gauteng • Taking the lead in Africa’s new industrial revolution

3.2 Gauteng Province’s ten-pillar programme

Over the next five-to-fifteen (2015 – 2030) years, the Gauteng Provincial Government will take active decisive steps to make Gauteng an integrated city-region characterised by social cohesion and economic inclusion. To achieve this, Premier David Makhura announced during his inaugral 2014 State of the Province Address that his administration has adopted a multi-pillar programme of radical transformation, modernisation and reindustrialisation of Gauteng. The most common manifestations of corruption and its related risks in the province are outlined in order to put in place preventative measures that will lay the foundation for the successful implementation of the multi-pillar programme. The pillars are unpacked in detail as follows:

3.2.1 Radical economic transformation

The radical economic transformation programme is aimed at reducing the high levels of poverty, unemployment and high income inequalities, and ensuring inclusion of the majority of the black population in the economy.

• Revitalising and building township economies: Over the next five years the Gauteng Provincial Government is determined to revitalise and mainstream the township economy by supporting the development of township enterprises, co-operatives and small-medium and micro enterprises that will produce goods and services that meet the needs of township residents, including food, school uniforms, work gear and furniture for government offices. The Gauteng Provincial Government is working with municipalities to provide training, financial support, infrastructure and markets to township entrepreneurs.

The biggest challenge will be non-compliance with legislative prescripts. Promotion of township enterprises requires the Gauteng Department of Economic Development to champion the procurement of specific goods and services such as catering, conferencing, furniture and other from these enterprises. Other provincial departments are also expected to support the revitalisation of township economies. The province will ensure that, in the awarding of business to township enterprises, procurement regulations and vetting of service providers are not flouted. Gauteng Treasury will also be requested to review the procurement framework to ensure that there are detailed procedures in place for departments.



• Developing key economic sectors: The provincial government has identified key sectors that have the potential to address the twin policy imperatives of creating decent employment and greater economic inclusion. These sectors include finance, automotive industry, manufacturing, Information Communication Technology, tourism, pharmaceuticals, creative industries, construction and real estate.

The provincial government commits to developing key economic sectors without fraudulent and corrupt activities. Failure to commit has a potential to damage the reputation of the provincial government.

• Promoting energy security: The transformation, modernisation and reindustrialisation of Gauteng as the leading economy in the country is not possible without energy security. The provincial government will work with municipalities and the private sector to develop an energy plan for Gauteng, with an emphasis on smart and green energy solutions.

International research demonstrates that the key role that the energy sector plays in society and economy make it vulnerable to corruption. Individuals in the public sector may find opportunities for personal gain due to the powers they hold over transformation and distribution of energy, including procurement for the development, operation and maintenance of energy system components. In cases where energy systems are being privatised, new opportunities may arise from differences in availability of and access to information by the public and private sector. For the same reason, individuals in the private sector may have economic and personal motivations to offer bribes to gain access to energy sources and further build and maintain transformation and distribution systems, or influence outcomes of privatisation efforts. Where energy systems or system components are already privatised, private sector decision makers may have considerable power over regional or even national socio-economic growth and development, and thus opportunities to abuse that power for personal gain. Lack of budget transparency and oversight – in public and private energy sector components – provide opportunities to hide corrupt activities19.

Signing of integrity pacts between private sector and government will need to be implemented to ensure accountable, transparent and corrupt free relationships. There must be maximum penalties for transgressors around price bidding, fronting and collusion.

• Promoting youth employment: The Gauteng Provincial Government will launch a programme that will draw young unemployed women and persons with disabilities into skills development and entrepreneurship training programmes linked to township renewal and revitalisation.

Officials who are tasked with enrolling applicants into skills development and entrepreneurship programmes are vulnerable to fraud and corrupt activities due to high demand for spaces in these programmes. The provincial departments that are implementing these programmes must conduct regular audits of intakes to eliminate unfair recruitment processes into the skills development and training programmes.

• Supporting small-medium and micro enterprises and cooperatives: The Gauteng Provincial Government is working with municipalities to ensure that affirmative government procurement policies support cooperatives and small-medium and micro enterprises owned by young people, women and persons with disabilities.

This will require effective implementation of policies and strategies as well as an integrated development and economic planning by the Gauteng Department of Economic Development. The aforementioned risks are critical to the TMR. The agencies for the Gauteng Department of Economic Development are allocated approximately 67% of the GDED budget and the department is relying on them to implement its strategies. Agencies work more closely with municipalities and the general public. Integration of the GDED’s plans with agencies and municipalities is important or else there may be duplication of effort and unnecessary competition.

19 http://pdf.usaid.gov/pdf_docs/PNACT875.pdf as at 12 February 2015.



The procurement framework should address how government could procure and support the small-medium and micro enterprises without flouting the procurement rules.

• Through the EPWP programme, the Gauteng Provincial Government has since 2004, created over 777,575 work opportunities in the province. Over 50,000 SMMEs and cooperatives have been provided with financial and non-financial support. Phase III of the Expanded Public Works Programme (EPWP) which will contribute to the national target of 6 million work opportunities over the next five years was launched.

• Tshepo 500 000: The Gauteng Provincial Government has launched the Tshepo 500 000 programme which is an employment creation and entrepreneurship development programme aimed at training, skilling and mentoring 500 000 young people through a set of projects aimed at empowering youth, women and people with disabilities giving them hope, employability and entrepreneurial skills over the next 5 years (2014-2019). The programme is underpinned by the following pillars: Transition and placement mechanisms for the preparation and placement of school leavers including establishment of a support mechanism; Direct Employment: mainly into public sector jobs which includes government facilitated private sector employment; Skills Development: Institutional training; Life skills training; Vocational training; Job shadowing; and Entrepreneur-ship: the identification , development and training in for SMME’s and Cooperatives.

The provincial government ensures that officials with adequate skills are employed to roll-out the Tshepo 500 000. However, most importantly is to put in place mechanisms that will guarantee transparent and timeous financial reporting on these programmes. This will eliminate corrupt activities within this programme. Poor reporting was identified by the National Department of Public Works as the major barrier to achieving the intended objectives of these programmes.

In order to ensure value for money, it is proposed that similar good governance measures should be implemented in the roll-out of these programmes. There should also be rigorous monitoring and evaluation and detailed reporting of progress and challenges including on the quality of work.

3.2.2 Decisive spatial transformation

The provincial government seeks to radically transform the spaces people live in by connecting and integrating places of work and human settlements. It is true that even after the end of apartheid; government has continued to build houses and human settlements that reproduce the spatial legacy of apartheid – far from work and economic opportunities and away from public transport nodes.

This will require long-term planning and will involve large scale infrastructure projects. Care has to be taken to mitigate risks of collusion, tender rigging and other anti-competitive behaviour.

In addition, radical steps will be taken to transform the spatial configuration and landscape of Gauteng Province through better and coordinated land use management and spatial development. The provincial government will work with municipalities and state-owned enterprises to ensure that a new built environment and inclusive spatial landscape emerges across the Gauteng City Region. This will be done through public transport infrastructure development and the creation of new integrated and sustainable human settlements and post-apartheid cities that are more connected, liveable, smart and green.

The construction industry accounts for about one-third of gross capital formation. Governments have major roles as clients, regulators and owners of construction companies. The industry is consistently ranked as one of the most corrupt: large payments to gain or alter contracts and circumvent regulations are common. The impact of corruption goes beyond bribe payments to poor quality construction of infrastructure with low economic returns alongside funding for maintenance and this is where the major impact of corruption is felt.

Regulation of the sector is necessary, but simplicity, transparency, enforcement, and thus a focus on the outcomes of poor construction are likely to have a larger impact than voluminous but poorly enforced regulation of the construction process. Where government is the client, attempts to counter corruption need to begin at the level of planning and budgeting. Output-based and community-driven approaches show some promise as



tools to reduce corruption. At the same they will need to be complimented by a range of other interventions including publication of procurement documents, independent and community oversight, physical audit and public-private anti-corruption partnerships20.

3.2.3 Accelerated social transformation

Economic and spatial transformation must be underpinned by and support an accelerated programme of social transformation at the centre of which is raising the living standards, and quality of life of the all the people of Gauteng.

• Education: At the centre of Gauteng’s social transformation is our determination to improve the quality of education which remains the backbone of radical socio-economic transformation. Gauteng’s public education system holds pride of place in the country and throughout the continent. Government will continue to invest energy and resources in improving the performance of schools in the townships and farming areas. Over the next five years smart classrooms will be introduced in public schools to ensure that all learners and teachers have progressive access to broadband and smart learning and teaching tools.

• Due to vastness of the Department of Education, special services to be rendered to the department demand tenders that cost sizeable amounts of money, for example, tenders for Learner-Teacher-Support materials that are about R500 000. The scholar transport tenders are a high risk area, subcontracting is very common between both the officials in the department and the industry. Due diligence should be applied to eliminate potential irregular procurement processes and tender rigging.

The Gauteng Department of Education has identified high risk areas that could hamper their efforts to support the implementation of this strategic objective as follows:

• Tender rigging for capital projects. • Abuse of power and resources. • Mismanagement of funds. • Appointment irregularities. • Lack of qualified district officials for rendering support to schools. • Rapid urbanisation resulting in increased learner enrolments and demands for classroom space and

resources.

The financial mismanagement of funds in schools and recruitment irregularities has been identified by the Gauteng Department of Education as the most common manifestation of corruption. Hence, the following interventions are being introduced:

• Capacity building programmes for members of the School Governing Bodies(SGB) and school management on customised financial management.

• Ensure finalisation and implementation of Charter of Accounts for Schools. • Monitoring and tracking of utilisation of state funds at school level. • Audited School Financial Statements audited by registered auditors. • Update of financial regulations/directives. • Consider developing a policy barring SGB and staff members from doing business with the same

school that they are working for.

• According to the 2014 Corruption Watch Annual Report, financial mismanagement in schools involves a host of activities that include the misappropriation of funds, lack of financial accountability, disregard for processes and a lack of financial reporting to both parents and other members of the School Governing Bodies. The report further indicates that school principals are manipulating the tender process to enrich themselves. The most cited manner in which the tender process is corrupted is by the allocation of tenders to friends and family members of the school principal or School Governing Body members. Furthermore, the report states that school principals are stealing money by altering the signatories on the school bank account and then signing blank cheques and then the money is not accounted for in the financial statements.

20 Charles, K. 2007. Construction, Corruption and Developing Countries. World Bank. Washington. Available at https://openknowledge.worldbank.org as at 12 February 2015.



• Quality public healthcare: this is the lifeblood of a thriving economy and productive society. The urgent turnaround of the Gauteng Department of Health and all public health institutions is one of the priorities of the fifth administration. The Gauteng Provincial Government will stabilise the finances of the department, improve the delivery of quality healthcare, reduce waiting times and queues, increase the number of professional staff and invest in health infrastructure and ICT as part of a programme to modernise public services and e-governance.

• A wide range of corruption risk areas exist in the public health care irregular procurement processes – awarding of contracts and the theft of hospital resources such as linen, medicines, equipment and food. The protection of public property, including the buildings and ensuring optimum security within premises is crucial. Unethical conduct by doctors towards patients is a topical issue that is costing the provincial government huge sums of money.

Fruitless and wasteful expenditure was incurred due to interest on late payments to suppliers and settlement of lawsuits by the Gauteng Department of Health. There is a need to tighten internal controls to eliminate manipulation of internal policies particularly those for supply chain management. The department should also guard against vulnerability of staff members to service providers who are desperate for their invoices to be processed. Therefore, thirty (30)-days rule for the processing of invoices should be strictly adhered to by the department.

• Competitive tender procedures can bring down the prices of generic medicines. • Building, maintaining and operating good healthcare infrastructure, whether hospital, medical

centres or other health care units, is crucial to the provision of good healthcare services for citizens. • Public contracts for healthcare infrastructure should be tendered and awarded competitively. • Research shows that escalating costs due to the escalation in prices of raw material often cost

government far more than the initial projected price. Good governance measures including M&E, reporting, site verification and ongoing risk management should be employed. Contractors performing poorly or handing over shoddy work should be blacklisted on a provincial database.

• Urban poverty and hunger: the provincial government will take decisive steps to ensure that increasing numbers of Gauteng residents are able to move from poverty and welfare dependency to productive economic participation. According to the 2014 State of the Province Address, whilst Gauteng is a relatively wealthy province, urban poverty and hunger remain the stubborn realities for many households. The number of people living in poverty has decreased from 32.4% in 2001 to 22% in 2011. This as a result of the policy intervention of providing social grants, to date the provision of social grants is 2.2 million of the 16 million South Africans benefitting nationally.

An urgent intervention will be welcomed in this area especially noting that the Gauteng Department of Social Development has indicated that there is a high number of individuals obtaining social grants, but do not qualify, because they offer bribes to officials responsible to process their forms. The areas of utmost concern to departments are those where officials have to use their discretion. This puts more strain on the national fiscal.

• Safety: to realise our vision of building a socially and economically inclusive Gauteng City Region, the province must build safe and secure communities. Government will work with various sectors of society to build a new social movement against crimes perpetrated against women, children and the elderly and step up the war against drugs.



This is one of the areas in which media and anecdotal reports of corruption including bribery are most prominent. Partnerships are important as corruption is a systemic and societal problem that requires a comprehensive, holistic and united response and action by different sectors of society. There is a need to improve working relations between the Gauteng Department of Community Safety and law enforcement agencies which include Metro Police units and South African Police Services. Measures have been implemented to reduce fraud and corruption in Driver’s Licence Testing Centres. A long-term plan is to develop a comprehensive strategy that will not only focus on the fight against corruption but include the fight against crime in general

3.2.4 Transformation of state and governance

Government cannot talk about radical socio-economic transformation without fundamentally changing the way state institutions relate to society. Part of the radical shift in government involves how it deals with and eradicates corruption among public officials and public servants, including in the private sector. Gauteng government will introduce measures to strengthen the integrity of public institutions and public processes so that fraud and corruption are prevented and detected early in the value chain to prevent losses. He said it was not enough to talk about fighting corruption.

The Gauteng Provincial Government has announced the Integrity Management Unit at the Office of the Premier to drive the agenda of integrity promotion across government departments. This will assist with the implementation of the Public Administration Management Act which indicates that no public servant is allowed to do business with government and that all managers comply with the declaration of interests. The Integrity Management Unit will also strengthen forensic investigations of fraud and corruption and act swiftly against those found guilty of corruption. It is imperative for the Gauteng Provincial Government to have a dedicated integrity management unit that has clear strategic objectives related to fighting corruption thereby strengthening provincial government’s effort to combat corruption.

3.2.5 Modernisation of the Public Service

As part of our vision of modernising the delivery of public services and expanding e-governance to improve people’s quality of life, we will see greater efforts in harnessing ICT in education, health, human settlements and safety. This is consistent with our vision of building a smart, knowledge-based and innovation-driven Gauteng economy. A key intervention is the roll-out of the Gauteng Broadband Network. The Gauteng Provincial Government and municipalities are working together with the private sector in the massive roll-out of broadband and free Wi-Fi across the province as the backbone of the new economy.

The use of information technology systems in delivery of government services should be accompanied by continuous advanced capacity building programmes on digital forensics for investigators. The increasing use of internet and other technology in all aspects of life has created new opportunities for technology to be used in perpetrating almost every type of fraud, and in most cases, investigators gather some types of digital evidence. These include conducting an investigation involving computers, forensic examination and analysis, digital forensic software and computer investigation and computer forensics.

3.2.6 Modernisation of the economy

The provincial government will work with research institutions to promote innovation and fast-track the development of new sectors and industries that will usher Gauteng into an innovation-driven, knowledge-based, smart and green economy. The potential for Gauteng to be the key driver of new sectors such as mineral beneficiation and agro-processing will also be enhanced.



The use of research institutions is necessary as there is a need for research to strengthen anti-corruption strategies and programmes. Partnerships will also be explored through the Gauteng Province Anti-Corruption Forum.

3.2.7 Modernisation of the human settlements and urban developments

New post-apartheid cities will be a combination of modern public transport modes, integrated and sustainable human settlements that are socially and economically inclusive and promote urban green development. Particular attention will be paid to the West Rand and Sedibeng Regions, respectively, in order to revitalise their economies and connect them to the economic centres of the Gauteng City Region. The renewal of old towns and inner-city regeneration will be a key focus of the provincial government, working together with municipalities and the private sector.

Gauteng government will speed up the handing over of existing housing projects that are complete and make sure that all houses are allocated to the legitimate owners. As part of preventing and the abuse of the housing waiting list, the provincial government will introduce the use of biometric technology to manage the response to those on the waiting lists.

The provincial government will work with municipalities and national government to ensure that all township roads and streets are tarred, eradicate the bucket system, all hostels turned into family units and prevent illegal land invasion and growth of informal settlements. Better and integrated urban planning and development is the best way to manage rapid urbanisation. According to Corruption Watch, corruption in the housing sector occurs in the provincial and local spheres of government21.

The Gauteng Department of Human Settlements has identified corruption and fraud risks in their approved 2014/2015 Fraud Prevention Plan as follows:

• Supply Chain Management. • Conflict of interest (officials doing business with state, not declaring their financial interest as required,

officials performing remunerative work outside the department without approval). • Payment of contractors for services not rendered. • Recruitment of staff. • Housing subsidy management. • Collection of rent from the affordable rental housing. • Allocation of RDP houses. • Usage of departmental resources. • Contract management to ensure that service providers adhere to contractual obligations and where breach

has been identified, corrective action be taken.

Corruption Watch has highlighted risks that could hamper the successful implementation of service delivery as follows:

• Embezzlement of funds that are allocated for housing: this is widespread in the provision of low-cost housing in metropolitan areas, where the municipality employs a third party to manage municipal flats and other low-cost housing. Money allocated for these projects is embezzled by housing officials in the department.

• Procurement irregularities associated with building of houses: procurement processes are particularly vulnerable to corruption. This pertains to both the selection of suppliers – where procedures are flouted and tenders are allocated to family and friends of housing officials – and the over-payment of suppliers so that officials in the human settlements department, by colluding with suppliers, can embezzle funds.

• Allocation of houses: houses are allocated to specific individuals as a result of their connection to politically powerful people.

21 Corruption Watch. 2014. Corruption Watch Annual Report page 18. Available at www.corruptionwatch.org as at 19 February 2015.



The use of research institutions is necessary as there is a need for research to strengthen anti-corruption strategies and programmes. Partnerships will also be explored through the Gauteng Province Anti-Corruption Forum.

3.2.7 Modernisation of the human settlements and urban developments

New post-apartheid cities will be a combination of modern public transport modes, integrated and sustainable human settlements that are socially and economically inclusive and promote urban green development. Particular attention will be paid to the West Rand and Sedibeng Regions, respectively, in order to revitalise their economies and connect them to the economic centres of the Gauteng City Region. The renewal of old towns and inner-city regeneration will be a key focus of the provincial government, working together with municipalities and the private sector.

Gauteng government will speed up the handing over of existing housing projects that are complete and make sure that all houses are allocated to the legitimate owners. As part of preventing and the abuse of the housing waiting list, the provincial government will introduce the use of biometric technology to manage the response to those on the waiting lists.

The provincial government will work with municipalities and national government to ensure that all township roads and streets are tarred, eradicate the bucket system, all hostels turned into family units and prevent illegal land invasion and growth of informal settlements. Better and integrated urban planning and development is the best way to manage rapid urbanisation. According to Corruption Watch, corruption in the housing sector occurs in the provincial and local spheres of government21.

The Gauteng Department of Human Settlements has identified corruption and fraud risks in their approved 2014/2015 Fraud Prevention Plan as follows:

• Supply Chain Management. • Conflict of interest (officials doing business with state, not declaring their financial interest as required,

officials performing remunerative work outside the department without approval). • Payment of contractors for services not rendered. • Recruitment of staff. • Housing subsidy management. • Collection of rent from the affordable rental housing. • Allocation of RDP houses. • Usage of departmental resources. • Contract management to ensure that service providers adhere to contractual obligations and where breach

has been identified, corrective action be taken.

Corruption Watch has highlighted risks that could hamper the successful implementation of service delivery as follows:

• Embezzlement of funds that are allocated for housing: this is widespread in the provision of low-cost housing in metropolitan areas, where the municipality employs a third party to manage municipal flats and other low-cost housing. Money allocated for these projects is embezzled by housing officials in the department.

• Procurement irregularities associated with building of houses: procurement processes are particularly vulnerable to corruption. This pertains to both the selection of suppliers – where procedures are flouted and tenders are allocated to family and friends of housing officials – and the over-payment of suppliers so that officials in the human settlements department, by colluding with suppliers, can embezzle funds.

• Allocation of houses: houses are allocated to specific individuals as a result of their connection to politically powerful people.

21 Corruption Watch. 2014. Corruption Watch Annual Report page 18. Available at www.corruptionwatch.org as at 19 February 2015.

• Local councillors solicit and accept bribes to allocate RDP houses: local councillors are reported to be accepting bribes from people to whom houses have not yet been allocated. Bribes are accepted either to speed up the allocation process for people who have already registered, or to get access to a second house.

• Fraudulent identities to gain access to RDP houses: false identities are used to get RDP houses. Fraudsters either use the identities of dead people, or of people who are not eligible for an RDP house.

• Unauthorised allocation of houses: local councillors sell RDP houses or allocate them to friends and family members.

• Others include: falsification of title deeds, illegal occupation of houses, land invasion and illegal selling of government owned land.

The intervention measures will be put in place to deal with the risks mentioned above as follows:

• Intensify anti-corruption measures through the Anti-Fraud and Corruption Unit at the Department of Human Settlements with specific focus on investigation, prosecution and recovery of funds.

• The department would also consider acquisition of a proper service provider database management system for monitoring and evaluation of services at supply chain management. This would assist with screening of service providers to check their suitability for the department to do business with them. Adherence to the Supply Chain Management Policy, processes and procedures will also be prioritised especially for big tenders that involve building of human settlements.

• Intergovernmental relations will also be strengthened to ensure better provision of services to the residents of the province.

• Partnering with civil society organisation like Corruption Watch through the joint programme of action that will be developed by the Gauteng Province Anti-Corruption Forum.

3.2.8 Modernisation of public transport infrastructure

Gauteng will look different over the next five to fifteen years. Combined with public transport infrastructure rollout and the development of the Aerotropolis, and Oliver Reginald Tambo Special Economic Zone, driven by the provincial government and municipalities, this infrastructure investment has major potential to create more than 300 000 jobs and boost the development of new small-medium and micro enterprises and township enterprises that are owned and managed by black people, women and youth.

Corruption in capital works happens in many ways including bribes, kickbacks, collusion, bid rigging, and fraud. These activities can take place in the following areas22:

• Selection and award of contract (for instance, restrictive or deceptive bid specifications) • Design and construction specifications (for instance, padding of design and cost estimation) • Project supervision (for instance, false certification of compliance) • Contract claims (for instance, falsifying need or quantities in change orders)

Detecting corruption in selection and award of contract: Corruption in the tender process typically falls into three categories:

Bribes and kickbacks – key decision makers seek to manipulate the procurement process to award the work to a particular contractor, in return for a payment from that contract. Bribes are payments received in advance, in return for an agreement from the decision maker to decide in a certain way. Kickbacks are payments made to the decision maker after the fact (for example, once the construction contract has been awarded to a pre-determined firm.

Bid rigging – includes actions that influence a bid in a non-competitive way to achieve a prearranged objective.

22 World Bank. 2009. Deterring Corruption and Improving Governance in Road Construction and Maintenance. Available at www.openknowledge.worldbank.org as at 12 February 2015.



For instance, bid rigging could include some type of information or procedural asymmetry to tip the scale in favour of a contractor or consortium (as in, sole-source contracts or manipulated bid specifications).

Fraud – Bidders misrepresent the qualifications of the firm or individual staff, in a way that materially affects their ability to undertake the project to the required standard. Such fraud may involve collaboration of decision makers or utility staff (for example, and agreement to not carry out proper site inspections).

Fraud, corruption and other irregularities in procurement of public transport infrastructure are the major concern. The provincial government should consult with law enforcement agencies to find a viable solution in introducing life style audits, particularly for the officials at responsible departments. Service providers found to be involved in bribing departmental officials should also be blacklisted.

The development of public transport infrastructure and modern public transport notes will include the creation of new integrated and sustainable human settlements and the building of post-apartheid cities that are more connected and more socially and economically inclusive, and that promote urban green development.

The Gauteng Provincial Government should consider introducing Integrity Testing for companies doing business with the state. This will include background checks for their respective officials serving on Board of Directors.

3.2.9 Reindustrialisation of Gauteng

Another radical intervention the Gauteng Provincial Government will focus on is the reindustrialisation of the Gauteng economy through strategic infrastructure development. The massive rollout of public transport infrastructure across the province shall be utilised to revitalise and modernise old industries that will locally manufacture or assemble buses, trains and locomotives.

In order to boost employment and economic inclusion, the provincial government and municipalities will procure 75% of all goods and services from South African producers, especially small-medium and micro enterprises, township enterprises and black-owned, women and youth enterprises.

The Gauteng Provincial Government will guard against manipulation of supply chain management policies by the members of the Departmental Acquisition Committees (DAC). There are serious allegations that DAC members reduce threshold values to be less than R500 000 to prevent an open tender process.

As indicated above, the biggest challenge will be non-compliance with legislative prescripts. Promotion of township enterprises requires the Gauteng Department of Economic Development to champion procurement of specific goods and services such as catering, conferencing, furniture from these enterprises. Other provincial departments are also expected to support revitalisation of township economies. The risk is that, in the awarding of business to township enterprises, procurement regulations and vetting of service providers may be flouted.

The government is working closely with state-owned enterprises, Passenger Rail Agency of South Africa and Transnet, to re-industrialise our province and build economic infrastructure that will boost employment creation and economic inclusion through investing more than R300 billion in post, freight, rail and pipeline capacity.

The Gauteng Department of Infrastructure Development has identified the risks that can hamper achievements of their objectives and has subsequently developed action plans as follows:

Risk Action

Service providers submitting inflated claims. Claims are verified and work is assessed for the quality and value by professional indemnity prior to processing.

Capacitate Project Managers and Planners by providing training on business processes.

Unjustly request for extension of contract duration by service providers.


Revise delegation of authority within the department to ensure proper channels are being followed.

Manipulation of business processes, (e.g. payment process, authorisation) for personal gain.

Code of Conduct for professionals legislated by statutory bodies.

Conduct education and awareness on the Business Processes and Procedures Manual.

3.2.10 Taking the lead in Africa’s new industrial revolution

As we undertake the onerous task of radical economic transformation, we do so knowing fully well that ours is currently the leading economy in the country and Southern African Development Community region and a key player in Africa’s economy. According to the World Bank Development Report, between 2000 and 2010 six of the ten fastest economies were from Africa. Gauteng is the fourth biggest economy on the continent, contributing 11% to Africa’s economy. Globally, there has been an economic shift towards countries of the south, particularly the (Brazil, Russia, India, China and SA) BRICS countries. All these facts underscore the strategic significance of our province in strengthening economic trade and partnerships with African and Brazil, Russia, India and China.

The Gauteng Provincial Government should note the following:

• As mentioned above, Gauteng is the economic hub of the country and is the fourth largest economy on the continent. This results to high demand to foreign nationals who would like to move to the province. Individuals who wish to acquire a South African passport or identity document, but do not qualify for it, are likely to offer bribes to officials of the Department of Home Affairs.

• South Africa, as part of the global community, has signed and ratified a number of international instruments. For example, the Organisation of Economic Cooperation and Development Convention on Bribery of Foreign Public Officials in International Business Transactions – this Convention is aimed at reducing corruption by encouraging sanctions against bribery in international business transactions carried out by companies based in the Convention member countries.



For instance, bid rigging could include some type of information or procedural asymmetry to tip the scale in favour of a contractor or consortium (as in, sole-source contracts or manipulated bid specifications).

Fraud – Bidders misrepresent the qualifications of the firm or individual staff, in a way that materially affects their ability to undertake the project to the required standard. Such fraud may involve collaboration of decision makers or utility staff (for example, and agreement to not carry out proper site inspections).

Fraud, corruption and other irregularities in procurement of public transport infrastructure are the major concern. The provincial government should consult with law enforcement agencies to find a viable solution in introducing life style audits, particularly for the officials at responsible departments. Service providers found to be involved in bribing departmental officials should also be blacklisted.

The development of public transport infrastructure and modern public transport notes will include the creation of new integrated and sustainable human settlements and the building of post-apartheid cities that are more connected and more socially and economically inclusive, and that promote urban green development.

The Gauteng Provincial Government should consider introducing Integrity Testing for companies doing business with the state. This will include background checks for their respective officials serving on Board of Directors.

3.2.9 Reindustrialisation of Gauteng

Another radical intervention the Gauteng Provincial Government will focus on is the reindustrialisation of the Gauteng economy through strategic infrastructure development. The massive rollout of public transport infrastructure across the province shall be utilised to revitalise and modernise old industries that will locally manufacture or assemble buses, trains and locomotives.

In order to boost employment and economic inclusion, the provincial government and municipalities will procure 75% of all goods and services from South African producers, especially small-medium and micro enterprises, township enterprises and black-owned, women and youth enterprises.

The Gauteng Provincial Government will guard against manipulation of supply chain management policies by the members of the Departmental Acquisition Committees (DAC). There are serious allegations that DAC members reduce threshold values to be less than R500 000 to prevent an open tender process.

As indicated above, the biggest challenge will be non-compliance with legislative prescripts. Promotion of township enterprises requires the Gauteng Department of Economic Development to champion procurement of specific goods and services such as catering, conferencing, furniture from these enterprises. Other provincial departments are also expected to support revitalisation of township economies. The risk is that, in the awarding of business to township enterprises, procurement regulations and vetting of service providers may be flouted.

The government is working closely with state-owned enterprises, Passenger Rail Agency of South Africa and Transnet, to re-industrialise our province and build economic infrastructure that will boost employment creation and economic inclusion through investing more than R300 billion in post, freight, rail and pipeline capacity.

The Gauteng Department of Infrastructure Development has identified the risks that can hamper achievements of their objectives and has subsequently developed action plans as follows:

Risk Action

Service providers submitting inflated claims. Claims are verified and work is assessed for the quality and value by professional indemnity prior to processing.


Unjustly request for extension of contract duration by service providers.


Revise delegation of authority within the department to ensure proper channels are being followed.

Manipulation of business processes, (e.g. payment process, authorisation) for personal gain.

Code of Conduct for professionals legislated by statutory bodies.

Conduct education and awareness on the Business Processes and Procedures Manual.

3.2.10 Taking the lead in Africa’s new industrial revolution

As we undertake the onerous task of radical economic transformation, we do so knowing fully well that ours is currently the leading economy in the country and Southern African Development Community region and a key player in Africa’s economy. According to the World Bank Development Report, between 2000 and 2010 six of the ten fastest economies were from Africa. Gauteng is the fourth biggest economy on the continent, contributing 11% to Africa’s economy. Globally, there has been an economic shift towards countries of the south, particularly the (Brazil, Russia, India, China and SA) BRICS countries. All these facts underscore the strategic significance of our province in strengthening economic trade and partnerships with African and Brazil, Russia, India and China.

The Gauteng Provincial Government should note the following:

• As mentioned above, Gauteng is the economic hub of the country and is the fourth largest economy on the continent. This results to high demand to foreign nationals who would like to move to the province. Individuals who wish to acquire a South African passport or identity document, but do not qualify for it, are likely to offer bribes to officials of the Department of Home Affairs.

• South Africa, as part of the global community, has signed and ratified a number of international instruments. For example, the Organisation of Economic Cooperation and Development Convention on Bribery of Foreign Public Officials in International Business Transactions – this Convention is aimed at reducing corruption by encouraging sanctions against bribery in international business transactions carried out by companies based in the Convention member countries.



Its goal is to create a truly level playing field in today’s international business environment. Countries like South Africa that have signed the Convention are required to put in place legislation that criminalises the act of bribing a foreign public official. Provinces, therefore, have an important role to play in assisting the national government to implement these conventions. Effective implementation of these conventions could also encourage foreign direct investment in the country which will boost the economy of the province and benefit residents in general.

3.3 Procurement Processes

Procurement is considered one of the areas of government activity most prone to corruption as it involves a large share of public resources. Corrupt procurement affects government spending in all sectors, and its consequences can be far-reaching. One of the difficulties of detecting corruption in procurement lies in the many forms in which corrupt activities can occur. Corruption in procurement can occur at various points in the process, including: project identification and design; advertising, pre-qualification, bid document preparation and submission of bids; bid evaluation and award of contract; and contract performance, administration and supervision. Corruption thrives in environments where transparency is weak – as in many procurement systems – where information is restricted to a small circle of people due to the “confidential” nature of the data23.

All the Gauteng Provincial Government departments identified fraud, corruption and other irregularities in supply chain management process as their main challenge. The Gauteng Province Anti-Corruption Forum should develop strategies to eliminate irregularities around supply chain management as they involve and affect all sectors of society. Government alone will always find it difficult to eliminate challenges that are being experienced around supply chain management. However, in order to improve the application of the supply chain management process in departments, the Public Service Commission recommends, amongst others, the following:

• Reinforcing the need for ethical behaviour by all parties involved in the supply chain management process: departments should continuously be supported by on-going training, education and communication of the due supply chain management process. The objectives of a fair, transparent and equitable supply chain management process must be communicated to all role-players involved. If the procurement workforce is not equipped to handle the increasing complexity of procurement, officials will not be able to maximise value for money and implement the goals of national procurement strategies. Capacities and training of the workforce are indicators for the performance of a procurement system24.

• On-going forensic or other specialised audits within the supply chain management process: these audits should be aimed at identifying weaknesses which contribute to fraud, corruption and other irregularities.

• Regular fraud detection reviews: performance of regular fraud detection reviews will ensure timely identification of potential fraud and other irregularities.

• Ensuring segregation of duties: the different steps in the supply chain management process should be assigned to different officials to ensure the segregation of duties and thus strengthen control over the process. Rotation of functions is also encouraged.

• Contract management and supplier performance: these could be measured in terms of delivery management, relationship management and contract administration25.

• Recording deviations in the supply chain management process: deviations must be recorded in writing and authorised in terms of the delegation of authority. Critical management oversight during this process should be enforced.

It is important to note that the Gauteng Provincial Government has opened the tender process to greater public scrutiny and probity so as to make it difficult for anyone to manipulate the award of tenders. The provincial government has started a pilot focusing on the Provincial Treasury and the Gauteng Department of Roads and

23 World Bank. 2008. Mauritania: Anti-Corruption Study. Washington, DC. Available at https://openknowledge.worldbank.org as at 12 February 2015. 24 www.oecd.org/gov/ethics/procurement-key-performance-indicators.htm 25 www.oecd.org/gov/ethics/procurement-key-performance-indicators.htm



Transport. The aim is to move with speed to include all departments, particularly those with big budgets like Health, Education and Infrastructure Development. This will ensure fair, transparent and equitable supply chain management process in the province. The Open Tender Process26 for the Gauteng Provincial Government will work as follows:

• Tender design, where the conditions, both standard and special, of the contract are established, as well as the bid evaluation criteria and estimates of time and cost. This information must be accurate and detailed, as vagueness opens the process to corruption;

• The tender specification committee will sign off on the tender documents and bid evaluation criteria, and agree on a tender publication date;

• The supply chain management process will kick in at this point. The tender box will be opened in public and details of each bidder and bid amount will be read out, so that the public will be able to immediately identify bidders that offer lower prices. In addition, tender documents will be imprinted in public to avoid potential switching of crucial information later on. The provincial treasury will also publish the list on its website within 48 hours, and make public the date on which the evaluation process will start.

• The bid evaluation committee takes over, and once it has done its work, will recommend the lowest bidder. If this is not possible, it must supply reasons for its decision and motivate for the second lowest bidder. This stage will be verified by the probity audit team, and the names of bidders who comply with the requirements will be published on the website.

• The bid adjudication process will now be opened for public observation. • The tender will be awarded and the name of the successful bidder will be published, as well as the tender

amount and the expected construction period. • Every three months, a team will visit the site to ensure that work is on track, and contractors who do not

perform will be reported to Treasury.

These will be aligned to the procurement management regulations that are being touted by the national government through the Office of the Chief Procurement Officer based at the National Treasury. Some of the comprehensive prevailing regulations to reshape supply chain management process include, amongst others, the following:

• An e-tender portal • A national database of all approved and complaint suppliers • An online shop where government departments will place all orders of less than five hundred thousand

(R500 000)

The 2014 Anti-Corruption Summit dealt with promoting ethical procurement amongst sectors and resolved that:

• There should be maximum punishment for price bidding and fronting transgressors. • Community structures should be empowered to have oversight of community projects. • Leadership: societal, academic, government and political has an important role in creating a corrupt-free

society. • Eviction law: make Eviction Policy to start at lower levels of government like police stations. • Strengthen our public sector institutions with resources (i.e. Public Protector).

3.4 Conclusion

This chapter discussed integrity management within the Gauteng Province’s multi-pillar programme of radical transformation, modernisation and reindustrialisation of Gauteng. The potential risks that could destabilise successful implementation of the pillars as identified by provincial departments are outlined together with remedial actions. Supply chain management processes as well as interventions to eliminate fraud, corruption and irregularities in the procurement process are also discussed. The next chapter will focus on the prevention strategies by discussing the promotion of ethical culture within our sectors.

26 www.gautengonline.gov.za under Open Tender as at 11 February 2014



CHAPTER 4: PREVENTION

4.1 Introduction

This chapter is focusing on prevention strategies by discussing the promotion of ethical culture within our sectors. International instruments, policies and regulations that are applicable to anti-corruption will be outlined. The chapter further indicates the importance of arranging for physical and information security. It also argues that employee vetting must also be prioritised by all components of our sectors. Risk management is also discussed in this chapter.

4.2 Ethical Culture

Building a reputation of integrity builds trust in organisations. It takes years to build but may be lost in seconds. There are many examples of nepotism, collusion, bid-rigging and abuse of resources that cuts across sectors. Integrity is germane to good governance and refers to the application of values, principles and norms in the operations of organisations. Achieving a culture of integrity requires coherent efforts to integrity management systems and monitor and enforce them in daily practice. It also requires sectors to anticipate risks and apply tailored countermeasures. It is imperative that leadership ‘walks the talk’ in setting the tone for the organisation with regard to policies and practices and the management of partnerships and stakeholders, and developing an internal culture of ethical performance in whatever space it operates in.

Building Integrity is about reducing the space and opportunity for corrupt practices. Developing a multi-stakeholder programme to build integrity will be a stepping stone to a corruption free Gauteng City Region. Government proposes the signing of integrity pacts with stakeholders as sectors engages with each other to reiterate their commitment to integrity.

Each year, governments spend huge sums of money on public procurement – funding roads, bridges, schools, housing, water and power supply and other community improvement projects. But with these vast expenditures, opportunities for corrupt activities are rife. Integrity Pacts are a tool for preventing corruption in public contracting. They are essentially an agreement between the government agency offering a contract and the companies bidding for it that they will abstain from bribery, collusion and other corrupt practices for the extent of the contract. To ensure accountability, Integrity Pacts also include a monitoring system typically led by civil society groups.

While Integrity Pacts help ensure clean operations on the part of contractors and public officials during the execution of a project, they also yield other benefits. Integrity Pacts provide enhanced access to information, increasing the level of transparency in public contracts. This, in turn, leads to greater confidence and trust in public decision-making, less litigation over procurement processes and more bidders competing for contracts. Integrity pacts can also encourage institutional changes, such as the increased use of e-procurement systems, simplified administrative procedures and improved regulatory action27.

The Public Service Commission, KPMG and Transparency SA conducted a survey in 2001 titled “Ethics in practice in South Africa” which focused on practices of ethics in business, non-governmental organisations and public sector and concluded that this process will involve a range of activities that will demonstrate the organisation’s commitment to ethics and ethical behaviour and should include28:

• developing comprehensive ethics programmes; • effective measurement of ethical performance, and integration of this measurement and reporting with

existing focus areas such as finance and the environment; • ensuring the effective design and implementation of ethics policies; • developing appropriate ethics training programmes at all levels within the organisation;

27 http://www.transparency.org/whatwedo/tools/integrity_pacts/4/ as at 10 February 201528 Public Service Commission, KPMG and Transparency SA. 2001. Ethics in practice in South Africa.



• developing effective whistle blowing mechanisms, and ensuring that employees understand the need for – as well as the consequences of whistle-blowing; and

• appointing – and supporting – senior level staff to coordinate and implement ethics programmes

The 2014 Gauteng Summit resolved that government, business and civil society need to entrench a paradigm of ethics and integrity: Noting that, corruption is not only fought through policies, procedures and systems; fundamentally it is about human behaviour both at an individual and an organisational level. This is applicable for both civil servants and citizens. Effort will be focused on:

• Promoting awareness on ethics and integrity; • Promoting responsible citizenship and engaged citizens; • Promoting education in schools and in communities; • Making use of integrity officers as sounding boards for ethical practice; • Recommitting ourselves to Batho Pele principles and entrenching values in the organisation that drive

ethics and integrity; • Actively managing performance (rewards and sanctions) towards ethical behaviour and practice; and • Streamlining policies and procedures.

To this end:

• The leadership should communicate the organisations commitment to fighting fraud and corruption and driving good governance measures in the organisation.

• All organisations to implement an Integrity Management Framework. • Partnerships for citizen education should be employed.

4.3 Good Governance

As the Global City Region expands, and radical economic transformation and re-industrialisation become the drivers of economic growth, trade and investment will expand beyond the borders of the city region and the pace of delivery increases. All sectors need to have the capability to deal with the change and good governance measures need to be in place. Governance is the process of decision-making and the process by which decisions are implemented. Governance applies to all decision-makers in South Africa who would typically be government, business, labour and civil society. Accountability is one of the key principles of good governance, with other crucial elements being transparency, responsiveness, implementing participatory governance and following the rule of law. Accountability is the way in which individuals and organisations are held responsible for their actions and occurs either internally and externally, but is not mutually exclusive. It must also be morally based and procedural. The public at large, stakeholders of an organisation as well as its funders are beneficiaries of, or expect accountability.

The negative social and economic consequences of corruption affect us all directly and indirectly, having its greatest impact by diverting resources intended for the vulnerable into the hands of a few. Furthermore, it has a devastating impact on investment growth and development. What this means is that all organisations need to put into practice good governance mechanisms which range from putting in appropriate controls; proactive ethics programmes; and transparent reporting processes. The King III report has a chapter on: corporate citizenship; leadership, integrity and responsibility, and highlights principles for good governance; whilst focusing on companies, the principles are equally applicable to organisations. In South Africa, corporate citizenship includes, among many others, issues related to transformation, human rights, human capital, social capital, safety and health. Lastly, the report reflects the requirement that corporate governance requires effective and responsible leadership to ensure that the company is run ethically, in a transparent and accountable manner. The foregoing, together with an empowered citizenry will enable all sectors to hold each other to account, thus moving the Global City Region forward, together.

The 2014 Summit resolutions focusing on promoting good governance within sectors of society at the Gauteng City Region Anti-Corruption Summit on 07 November 2014 were as follows:

• Leadership has to show political will in fostering good governance by implementing programmes that target leadership capability which fosters good governance.

• Senior Management Service (SMS) members have to declare personal interests. • Greater emphasis be placed on the protection of whistle-blowers.



• All public officials have a duty to report any suspected breaches of law. • There should be better use made of existing laws such as Prevention and Combating of Corrupt Activities

Act (PRECCA) to curb corrupt practices. • The moral regeneration movement should be brought back. Education in ethical behaviour be an important

component of school education and be introduced into the Life Orientation curriculum in schools. • Citizen education is paramount and forms a necessary component in the fight against corruption. This will

also contribute to an understanding of what it means to be a responsible citizen. In addition, we need to understand the mandate of government so that we can create a corruption-free society.

• The state needs to deal with inappropriate qualifications for key positions and that cadre deployment should be limited.

• Orientation of new employees in the government departments needs to be uniform. • Uncorrected perceptions generated by the media regarding government officials and practices needs to be

addressed. • There is greater emphasis on ethical leadership as criteria for ‘good leadership’. • Raise awareness through various media platforms about the impact of corruption on the socio-economy

of the country. • Foster the rule in all levels of the organisation and in society. • Protection of freedom of speech. • South Africa must study the impacts of corruption from sister countries like Nigeria, Zimbabwe and Republic

of Congo are experiencing. • We need to be extremely mindful of creating too many institutions to deal with corruption, because that

could cause a derailment of the actual issue.

4.4 Training and Awareness

In order to reiterate the commitment towards a zero tolerance for corruption, organisations should employ a comprehensive communication and awareness campaign on anti-corruption and ethics issues, including detection of corruption and how it was dealt with. Employees need to be trained on policies and procedures and training. Training should comprise (but not be limited to) organisational codes, ethics awareness, good governance measures and where to report contraventions in behaviour.

To this end:

• Develop and implement a targeted communication campaign to promote South Africa’s anti-corruption and good governance successes and highlight the consequences of corruption.

• Establish accredited curricula for anti-corruption studies and training for all levels within the organisation, including establishment of partnerships with higher education facilities.

• Entrench ethics training at school level. • Establish partnerships with organised stakeholders in the business and civil society sectors, to curb

corrupting practices by members of these sectors and to advocate professional ethics and integrity with members.



4.5 International Instruments, Policies and Regulations

The government in South Africa has committed itself to a number of ethics and anti-corruption frameworks. This section of the framework will discuss the international instruments, policies and regulations that are available to fight corruption.

4.5.1 International instruments

According to the Department of Public Service and Administration (2014), South Africa, as part of global community, has signed and ratified the following international instruments:

• The United Nations Convention Against Transnational Organised Crime – the purpose of the Convention is to promote cooperation to prevent and combat transnational organised crime more effectively and came into effect on 29 September 2003. For example, Article 9 of the United Nations Convention Against Transnational Organised Crime states that each state party shall, to the extent appropriate and be consistent with its legal system, adopt legislative, administrative or other effective measures to promote integrity and to prevent, detect and punish the corruption of public officials. This Convention provides an effective tool and legal framework for international cooperation in combating, inter alia, such criminal activities as money-laundering, corruption, illicit trafficking in endangered species of wild life flora and fauna, offences against cultural heritage and the growing links between transnational organised crime and terrorist crimes. The following protocols supplement this Convention: Protocol to Prevent, Suppress and Punish Trafficking in Persons, Especially Women and Children; Protocol against the Smuggling of Migrants by Land, Sea and Air; Protocol against Illicit Manufacturing of and Trafficking in Firearms, Their Parts and Components and Ammunition.

• The United Nations Convention Against Corruption (UNCAC) – the purposes of the Convention are to

promote and strengthen measures to prevent and combat corruption more efficiently and effectively; to promote and support international cooperation and technical assistance in the prevention of and fight against corruption (including in asset recovery) and to promote integrity, accountability and proper management of public affairs and public property. The Convention provides measures to combat corruption in the public and the private sectors, as well as for civil society.

• The Organisation of Economic Cooperation and Development (OECD) Convention on Bribery of Foreign Public Officials in International Business Transactions – this Convention is aimed at reducing corruption by encouraging sanctions against bribery in international business transactions carried out by companies based in the Convention member countries. Its goal is to create a truly level playing field in today’s international business environment. Countries like South Africa that have signed the Convention are required to put in place legislation that criminalises the act of bribing a foreign public official.

• The African Union (AU) Convention on Preventing and Combating Corruption – the Convention seeks to, firstly promote and strengthen the development in Africa by each State Party, of mechanisms required to prevent, detect, punish and eradicate corruption and related offences in the public and private sectors. Secondly, promote, facilitate and regulate cooperation among the State Parties to ensure the effectiveness of measures and actions to prevent, detect, punish and eradicate corruption and related offences in Africa. Thirdly, coordinate and harmonise the policies and legislation between State Parties for the purposes of prevention, detection, punishment and eradication of corruption on the continent. Fourthly, promote socio-economic development by removing obstacles to the enjoyment of economic, social and cultural rights as well as civil and political rights. Lastly, establish the necessary conditions to foster transparency and accountability in the management of public affairs.

• The Southern African Development Community (SADC) Protocol Against Corruption – the purposes of this Protocol are to promote and strengthen the development of mechanisms needed to prevent, detect, punish and eradicate corruption in the public and private sector; to promote, facilitate and regulate cooperation among states to ensure the effectiveness of measures and actions to prevent, detect, punishment and eradicate corruption in the private and public sectors; to foster the development and harmonisation of policies and domestic legislation of states relating to the prevention, detection, punishment and eradication of corruption in the public and private sector.



4.5.2 South African Legislative Framework

Underscoring South Africa’s efforts to combat and prevent corruption are the following pieces of legislations, regulations and frameworks:

Table 5: Legislative and Regulatory Framework

Instruments Applicable Legislation/Regulation

Purpose

Ethics, integrity and discipline

Public Administration Management Act, 2014 (Act 11 of 2014)

To provide for the organisation, management, functioning and personnel related matters in the public administration in the three spheres of government

Anti-Corruption Public Service Anti-Corruption Strategy (DPSA:2002)

The Strategy provides a framework for the Public Service through which corruption is addressed in a systematic and coordinated manner using a three-fold approach of preventing, combating and creating awareness of corruption.

Integrity Public Service Integrity Management Framework (DPSA: 2013)

To strengthen measures and standards for managing integrity and promoting ethical conduct in the public sector. This Framework entails measures for managing unethical conduct that may arise as a result of financial interests, gifts, hospitality and other benefits, post-public employment and remunerative work outside the public sector. Further proposals are made in respect of deployment of ethics officers in the public sector and minimum conduct requirements

Anti-Corruption (Gauteng specific)

Gauteng Anti-Corruption Strategic Framework (GPG:2010)

The Gauteng Anti-Corruption Strategic Framework is the guiding document for anti-corruption initiatives in Gauteng. The purpose of this framework is to have an approach that is holistic, integrative and pragmatic enough to enhance government’s efforts in intensifying the fight against crime and corruption Gauteng-wide.

Anti-Corruption (Local government sphere)

Local Government Anti-Corruption Strategic Framework (DPLG: 2006)

The Strategic Framework seeks to promote a culture of good and ethical governance that is intolerant to corrupt and fraudulent behaviours in the local government sphere.

Public Finance Public Finance Management Act, 1999 (Act 1 of 1999)

Establishes the framework for accountable management of public funds and provides for criminal prosecution of Heads of Department if found guilty of financial negligence, unauthorised, fruitless or wasteful expenditure.

Transparency The Promotion of Access to Information Act, 2000 (Act 2 of 2000)

Promotes transparency in government as well as the private sector.

Accountability The Promotion of Administrative Justice Act, 2000 (Act 3 of 2000)

Promotes fair administrative procedures and redress for citizens. The Act requires government to follow fair procedures when taking decisions that affect the public or an individual. Citizens have the right to request written reasons for decisions they disagree with, which enables one to judge whether the decision was influenced by corruption.

Whistle-blowing The Protected Disclosures Act, Act, 2000 (26 of 2000)

Promotes whistle-blowing as a preventative anti-corruption measure and protects whistle-blowers from “occupational detriment” as a result of blowing the whistle in good faith.

Gauteng Whistle-blowing Policy (GPG: 2009)

To provide means by which GPG staff is able to raise concerns with the appropriate line management, or specific appointed persons in the various provincial departments, where they have reasonable grounds for believing that there is fraud and corruption within their departments.



Instruments Applicable Legislation/Regulation

Purpose

Corruption The Prevention and Combating of Corrupt Activities Act, 2004 (Act 12 of 2004)

Provides effective legislation to combat corruption in all its forms. Reintroduces the common law act of bribery.

Financial Misconduct Treasury Regulation 4.3 Monitor the incidents and trends of financial misconduct and make recommendations thereto.

Financial Disclosure Chapter 3 of the Public Service Regulations, 2001

Promotes integrity in the Public Service through the careful management of potential conflicts of interest through financial disclosures. All senior managers in the Public Service are required to disclose their financial interests to their Executive Authorities, copies of which must be provided to the PSC for scrutiny.

Professional Ethics Code of Conduct for the Public Service, Chapter 2 of the Public Service Regulations

The Code of Conduct and its explanatory manual is a useful guide in the promotion of good governance and ethical conduct of public servants. It promotes honesty and integrity in the workplace.

4.6 Physical and Information Security

According to the Minimum Information Security Standards (MISS), physical security refers to condition which is created by the conscious provision and application of physical security measures for the protection of persons, property and information. Whereas, information security requires that condition be created by the conscious provision and application of a system of document, personnel, physical, computer and communication security measures to protect sensitive information.

Organisations should ensure that appropriate systems are in place for physical and information security, and continual review upgrade of systems should take place as criminals find new ways of breaching the security measures in place.

Examples of information security lapses include:

• Breaches of confidentiality • Abuse of privileged information • Tampering with information • Misrepresentation of data • The improper removal of documents (including information in electronic format)

As a result, information that needs to be safeguarded from unauthorised, improper, fraudulent or corrupt use includes:

• Official documents and reports • Correspondence • Databases • Internal management information systems

Ways of protecting and safeguarding this information must be put in place, including:

• Firewalls to protect electronic data • Using passwords for restricted access to privileged information • Implementing information back-up systems • A proper document safeguarding process (for example, controlling access to classified information) • Developing a comprehensive business continuation plan to deal with natural and unnatural disasters (like

floods, fires or bomb attacks)

The main physical security threat arises in the area of control over its information and physical assets, e.g. theft of assets such as Information Technology equipment, and office furniture. Sectors must consider conducting a regular detailed review of the physical security arrangements at its offices and other sites and improve weaknesses identified. Specific focus areas will be physical security over infrastructure, assets and staff. Sectors



must implement a comprehensive policy relating to physical security related matters that is compliant to MISS.It is recommended that all employees should be sensitised on a regular basis to the fraud and corruption risks associated with information security and the utilisation of computer resources, in particular – access control, and ensure that systems are developed to limit the risk of manipulation of computerised data. Regular communiqué to be forwarded to employees pointing out security policies, with a particular emphasis on e-mail and internet usage and the implications (e.g. disciplinary action) of abusing these and other computer related facilities. Where employees are found to have infringed on prevailing policy in this regard, disciplinary action must be taken. Regular reviews of information and computer security should also be considered. Weaknesses identified during these reviews to be addressed.

4.7 Employee Vetting

Sectors are urged to arrange vetting of officials in management positions, working in high risk areas as well as those working in anti-corruption units. Human Resources Departments must also arrange pre-screening of officials before confirming their appointments. Security vetting is the systematic process of investigation followed in determining a person’s security competence. Sectors must familiarise themselves with the Minimum Information Security Standards and ensure that their officials receive training thereof.

All vetting applications must be processed by accredited screening institutions like the South African Police Service, the State Security Agency (both Domestic and Foreign Branch) or South African National Defence Force that, in terms of the rationalisation agreement, are responsible for the security screening/vetting of persons within their jurisdictions. Sectors must also note the following:

• Security screenings of contractors supplying services to government departments or other government institutions: The onus is on the department/institution concerned in each case to indicate expressly in documents sent to the State Tender Board or private contractors whether there are security implications that should be taken into account in advance when they perform their duties for the department/institution involved. If there are such implications, reasons must be given for the inclusion of a clause in the tender document indicating the degree of clearance required, as well as a clause to ensure the maintenance of security during the performance of the contract. The clause could read as follows:

“Acceptance of this tender is subject to the condition that both the contracting firm and its personnel providing the service must be cleared by the appropriate authorities to the level of CONFIDENTIAL/SECRET/TOP SECRET. Obtaining a positive recommendation is the responsibility of the contracting firm concerned. If the principal contractor appoints a subcontractor, the same provisions and measures will apply to the subcontractor. Acceptance of the tender is also subject to the condition that the contractor will implement all such security measures as the safe performance of the contract may require.”

• The security responsibilities of the contractor will be determined by the department/institution concerned.

• Period of validity of security clearances: The Head of an institution or his/her delegate must ensure that an officer in respect of whom a security clearance of Secret or Top Secret has been issued, is rescreened every five (5) years and every ten years in respect of a confidential clearance. Enquiries will be done with the supervisor every five (5) years with respect to the security competence of an official who has received a confidential clearance. This arrangement does not preclude rescreening before a period of five years has lapsed in the case of occupational change or where something prejudicial has been established about an officer which may affect his or her security competence. Personnel in ultra-sensitive posts should be cleared every three years.

• Transferability of Clearances: A security clearance issued in respect of an officer while he/she is attached to a particular institution is not automatically transferable to another institution, for example when the officer is transferred. When an officer changes his employer, the responsibility for deciding whether an applicant’s existing clearance will be accepted or whether the rescreening of such an officer will be requested in the prescribed way rests with the new employer. However, for the purpose of meetings and other co-operative functions clearances are transferable. The employing institution is responsible for informing the chairman of such a meeting in writing as to the level and period of validity of the clearances of the representatives involved.

• Responsibilities of the screening authority: The screening authority will investigate and advise on the security



competence of a person on the basis of prescribed guidelines. After the investigation the screening authority will merely make a recommendation regarding the security competence of the person concerned to the head of the requesting institution, and this should in no way be seen as a final testimonial as far as the utilisation of the person is concerned.

• Responsibilities of the Head of the requesting institution: The Head of an institution or his delegate must make a decision and issue a clearance after receiving the recommendation made by the screening institution, and in accordance with circumstances/information at his/her disposal.

- Notwithstanding a negative recommendation from the screening authority, for whatever reason, the head of the institution may still, after careful consideration and with full responsibility, use the person concerned in a post where he/she has access to classified matters if he/she is of the opinion that the use of the person is essential in the interest of the Republic of South Africa or his/her institution, on the understanding that a person satisfying the clearance requirements is not available.

- When any person is utilised without a clearance, the responsible screening institution and the State Security Agency must be furnished every year with a certificate regarding such person’s security conduct. Any conduct entailing a security risk must be reported immediately to the screening authority concerned.

- Heads of institutions whose officers attend meetings where classified matters are discussed must inform the chairperson of such a meeting in writing of the level of security clearance of such officers. It is the responsibility of the chairperson to satisfy himself/herself regarding the security clearance of all those present at the meeting.

- Further, it is also the responsibility of the Head of the institution or his/her delegate to arrange the following:

ü ensure that there is continuous supervision of persons in respect of whom security clearances have been issued;

ü present security awareness programmes for his/her employees and to warn staff members not to supply personal particulars of colleagues/officers to unauthorised persons;

ü ensure that persons dealing with classified matters sign the prescribed declaration of secrecy;ü pertinently bring to the attention of the officers working with classified matters any other legislation,

regulation and/or orders that entail secrecy and/or the protection of activities, installations, etc. of any particular institution.

ü to point out to employees dealing with classified matters when they resign or leave the service that they will continue to be the target of foreign intelligence services and that they remain subject to the declaration of secrecy.

ü to ensure that all classified documents in the possession of the person concerned are returned when such person resigns or leaves the service; and

ü to ensure that no information comes into the possession of an individual that is not essential for the performance of his or her duties.

4.8 Risk Management

Identification of fraud risks is an important component to identify and evaluate fraud risks and the likelihood and significance of the risk, the identification of the most vulnerable areas, the effectiveness and efficiency of controls; what the residual fraud risk is and the organisation’s response with regard to preventative and detective controls. Further, there should be an evaluation of the effectiveness of the identified controls. To this end organisations should:

• Develop a risk methodology and management framework that are implemented at both a strategic and operational level and ensures that identified risks find application in the department’s/organisations anti-corruption strategy/plan, relevant business plan/s and training and awareness strategy;

• Develop governance processes in respect of risk management, including an Enterprise Risk Committee with approved Terms of Reference;

• Develop a framework that sets minimum requirements pertaining to the necessary capacity and capability to implement co-ordinated, accurate risk reporting, including monitoring in respect of the action plans relating to risks identified are in place.

• Develop risk mitigation plan that allocates identified risk to risk owners including fraud, corruption and ethics risks.



• Establish relevant lines of communication, relations, processes and procedures in place, to facilitate the analysis of pertinent data and or information.

Furthermore, the King III Report (2009: Institute of Directors in Southern Africa) outlines the requirements for an Ethics Risk Assessment: An ethics risk assessment should consider the following:

• Whether there is clarity on the accountability for managing ethics; • Identifying ethics risks through engagement with stakeholders; • Establishing a process to identify perceptions on ethics issues; and • Determining the organisation’s ethics risk profile and identifying vulnerable areas for attention.

4.9 Conclusion

This chapter focused on the prevention strategies by discussing the promotion of ethical culture within our sectors. International instruments, policies and regulations that are applicable to anti-corruption were outlined. The chapter further indicated the importance of arranging for physical and information security. The chapter also argued that employee vetting must also be prioritised by all components of our sectors. Risk management was discussed in this chapter. The next chapter will discuss the detection measures for corruption.



CHAPTER 5: DETECTION

5.1 Introduction

The chapter discusses the detection of corruption within sectors of society. The specific focus will be the development of a corruption database, conducting regular internal audits, swift management action against corrupt activities and creating safe whistle-blowing and reporting mechanisms.

5.2 Corruption Database

Organisations should implement measures such as a corruption database which tracks vulnerabilities for fraud and corruption within an organisation. The database may contain, but not be limited to, information such as follows:

• Ethics culture surveys; • Service delivery reports; • Complaints reports; • Audit reports; • Hotline findings; • Investigation reports; • Trend analysis; • Submission rates of financial disclosures; and • Potential and conflicts of interest.

It is not enough to keep records, there should be ongoing analysis of manifestations of corruption and trends and these should inform standard operating procedure and policy review. Information kept on the system should be communicated to relevant oversight bodies.

5.3 Internal Audit

Internal auditing is defined as “an independent appraisal function established within an organisation to examine and evaluate its activities as a service to the organisation.” Internal audit should assist in tracking manifestations of corruption, finalisation of investigations and more importantly how the recommendations of research reports are implemented. Random audit checks should be conducted.

According to Flaherty (2009) the internal auditing process involves identifying the internal auditing universe, assessing business risk, designing and gaining approval of the audit plan and performing individual internal audits. Consequently, the entity’s internal auditors should have a key role in the overall internal control process. This role includes the prevention and detection of corrupt actions. Flaherty further indicates that the role of internal auditor also promulgates standards of code of ethics, training and certification program. Professional rule related to the prevention of corruption include29:

• Independence - the auditor must be independent of the activity being audited and of adequate organisational status to be influential.

• Communication - the auditor must freely report the results of his work to management and the board when appropriate

• Scope of Work - requires auditors to determine compliance with laws and regulations • Code of Ethics - calls for higher standards of honesty, objectivity and diligence.

The Gauteng Provincial Government should formalise working relations with the Institute of Internal Auditors in South Africa(ITASA) which is part of an international network representing the interests of Internal Auditors worldwide. As a part of this international network, the IIA SA upholds and supports the fundamental tenets of

29 Flaherty, J. 2009. Role of Internal Auditors in the Anti-Corruption Battle. Paper submitted at the International Anti-Corruption Conference (IACC). Available at www8iacc.org/papers/jflaherty.html.



the profession - the Code of Ethics and the International Standards for the Professional Practice of Internal Auditing. The Institute of Internal Auditors in South Africa supports the profession by providing a wide range of services dedicated to the education and advancement of internal auditors and dynamically promoting and developing the profession in South Africa. The Institute of Internal Auditors in South Africa’s objectives are to build the profession, its credibility and a thriving business environment in South Africa. The Institute of Internal Auditors in South Africa serve internal auditors in South Africa by offering Technical Guidance, Professional Training Programs, Certification Programs, Continuing Professional Development Opportunities, Conferences and Networking Opportunities30.

5.4 Management Action

Management are the drivers for ensuring that policies and procedures with regard to anti-corruption and ethics are implemented across the organisation. Allocation of both human and financial resources for training should be prioritised. Discussions and monitoring of anti-corruption policies and procedures (including the organisations fraud prevention plan) are the responsibility of all managers across the organisation.

Management should not only ensure that allegations of corruption are investigated, but should also ensure that the investigations are finalised and that the recommendations of the reports are implemented. Where necessary, follow up on disciplinary processes, criminal prosecution and recovery. Management should implement Fraud Detection Reviews in high risk areas and proactively implement mitigation measures where appropriate.

It is also recommended that management must clearly state regularly and practically demonstrate that fighting corruption is the responsibility of every employee within their organisations. This can be done through public pronouncements on anti-corruption which need to be followed by firm action in respect of allegations of corruption.

5.5 Whistle-blowing and reporting mechanisms

The most effective way of detecting corruption is when officials are provided with machenisms to report corrupt activities.Unfortunately though, many officials never report corrupt activities that they see. Studies show various reasons for this, including:

• They did not believe the department would do anything about it. • Fear of retaliation from management, including, the lack of an anonymous and confidential means of

reporting.

To address this fear, people need to be provided with a safe, confidential and private way of reporting. Some of the ways of doing this are:

• Using the National Public Service Anti-Corruption Hotline i.e. 0800 701 701 • Internal reporting mechanisms (such as helplines, email facilities; free post and fax lines) • Whistleblowing / protected disclosure policies

All employees should have a mechanism to report any unethical conduct. To this end, organisations should:

• Develop whistle-blowing framework that clearly sets out how employees and others could blow the whistle, and how these instances would be responded to. Establish a clear system to support the provisions of the framework across the public sector. This should include assigning the responsibility of receiving such reports, co-ordinating them and tracking the progress.

• Raise awareness and provide training on whistle-blowing. • Promote a culture of whistle-blowing amongst employees and citizens. • Establish guidelines for the implementation of the Protected Disclosures Act, including guidelines that

make a distinction between whistleblowing and witness protection. • Improve conditions for and functioning of the system of witness protection, including the issuing of

guidelines on the conditions and how the system functions.

30 www.iiasa.org.za as at 19 February 2015.



NB: Sectors are urged to also consider Continuous Assessment Monitoring which is a service that assists in interrogation of data on a daily basis to determine if there are any irregularities in their normal business operations and assist with preventing and detecting fraud by providing exception reports.

It is important to note that, as at February 2015, the Department of Justice and Constitutional Development was in the process of reviewing the Protected Disclosures Act and has since submitted the Draft Protected Disclosures Amendment Bill. Therefore, there might be changes regarding whistle-blowing and reporting mechanisms.

5.6 Conclusion

The chapter discussed the detection of corruption which should focus on developing a corruption database, conducting regular internal audits, management action, creating safe whistle-blowing and reporting mechanisms. The next chapter will focus on resolution of reported cases of alleged corruption.



CHAPTER 6: INVESTIGATION

6.1 Introduction

One of the strategic priorities of the framework is to intensify anti-corruption awareness programmes which result in investigation and reporting of cases of alleged corruption. The Gauteng Provincial Government is aware that this requires effective follow-up and maximum penalties for the process to get credibility. This chapter seeks to outline investigation approach that is in place for the Gauteng Provincial Government and advise on some of the methods that should be considered by various sectors to ensure finalisation of alleged cases of corruption.

6.2 Gauteng Province’s approach to investigation

Gauteng Province has a centralised Gauteng Provincial Forensic Audits at Gauteng Treasury which has been mandated by the Premier to manage cases received from the National Anti-Corruption Hotline. The protocol for the case management of cases received from the National Anti-Corruption Hotline is as follows:

• The cases of alleged corruption in Gauteng Province are mostly received from the National Anti-Corruption Hotline which is a central database managed by the Public Service Commission for the reporting and monitoring of alleged corruption in the South African public service.

• The Public Service Commission forwards provincial cases to the Gauteng Provincial Forensic Audit which was established within the Gauteng Provincial Government to combat fraud and corruption by providing forensic services that include prevention, detection and investigation of all manifestation of corruption.

• The Gauteng Provincial Forensic Audit analyses whether all reports referred to them by the PSC which relate to the Gauteng Provincial Government departments and municipalities. The Gauteng Provincial Forensic Audits also scrutinises information provided by whistle-blowers to verify whether it is sufficient to warrant an investigation and allegations made are within the broad definition of fraud and corruption. This process contributes to the speedy resolution of Hotline cases within the province.

• All cases falling beyond the jurisdiction of the Gauteng Provincial Government are sent back to the Public Service Commission for appropriate referral.

The cases of alleged corruption which implicate officials from the Gauteng Provincial Government departments are then addressed to the relevant Accounting Officer for their decision and resolution. In instances where departments do not have the capacity to investigate cases of alleged corruption and fraud, the Accounting Officers are encouraged to request the assistance of the Gauteng Provincial Forensic Audits.

Important to note that the Gauteng Provincial Government, through the Office of the Premier and Gauteng Provincial Forensic Audit, is also in the process of developing a case management system for the management of National Anti-Corruption Hotline cases. The cases recorded in the data registers of departments do not always correspond with those contained in the National Anti-Corruption Hotline schedules. This in turn raises concerns about the accuracy, completeness and validity of the data contained in these data registers as there are discrepancies in the figures in the provincial database, when compared to the national database. This discrepancy is also found between departmental databases and the provincial database. To alleviate this problem, the province would like to maintain an electronic database to manage the National Anti-Corruption Hotline cases.

On completion of these cases, the Gauteng Provincial Forensic Audits provide reports to management and supports the resolution of cases by leading evidence during disciplinary and court proceedings. However, it is important to highlight that the Gauteng Provincial Forensic Audits is also responsible for proactive measures as follows:

• To facilitate fraud risk assessments that are aimed at identifying and addressing fraud and corruption risks which have an impact on the achievement of the objectives of the Gauteng Provincial Government departments. The proactive anti-corruption programmes are then designed as action plans to minimise the departments’ exposure to corrupt activities.



• To conduct fraud detection reviews in the province based on departmental requests focusing on the fraud risks identified during the fraud risk assessment process.

• To conduct integrity workshops in order to educate and create awareness on the manifestation of fraud and corruption within the public service in Gauteng and information of the channels available for reporting.

Departments with internal investigative capacity investigate their own cases and in some instances, departments outsource these investigations to external agencies. In line with Gauteng’s stance to improve performance and reduce corruption, all investigations must be executed as speedily as possible. In order to track progress on investigation of alleged cases of corruption that are referred to the Gauteng Provincial Government departments, status reports are required to be submitted on a regular basis in forty (40) days interval. This is to ensure that finalised cases do not remain open on the database. Once the investigations have been finalised, the cases are referred to anti-corruption agencies, where necessary, for criminal charges to be instituted. Departments are expected to send details of these cases, referred to the anti-corruption agencies, to the Department of Community Safety for follow up and records management.

The Gauteng Provincial Forensic Audits undertakes regular follow-ups for feedback on matters referred to the provincial departments. Upon receipt of feedback, the Gauteng Provincial Forensic Audits updates the provincial database. Progress reports must include: cases investigated, investigation reports, corrective measures taken, recovery of money and proof of the implementation of recommendations of the investigation reports. The Gauteng Provincial Forensic Audits provides quarterly reports to the Public Service Commission on the status of cases referred to the Gauteng Province. In instances where cases are resolved by the Gauteng Provincial Government departments, the Gauteng Provincial Forensic Audits provides regular updates to the Public Service Commission as and when these reports are received. Further to this, departments are encouraged to implement recommendations of the investigation reports and provide proof in order to ensure that cases are closed on the National Anti-Corruption Hotline database that is managed by the Public Service Commission.

The 2014 Summit resolved the following with regard to investigation and prosecution:

• Completion of cases should be on Key Performance Areas of all the Accounting Officers in Gauteng Province. • Investigation should focus on treating weakness in controls. • Head of Investigation Unit must have direct reporting line to the Accounting Officer. • Appropriate recruitment processes should occur. • Investigators must be properly trained and have necessary skills. • Officials responsible for initiating disciplinary proceedings must be properly skilled. • A centralised office should be established to play an oversight role in investigations. • A multi-disciplinary team to be established to handle backlog of cases. • Institutional structure must stop working in silos and have synergy with law enforcement agencies. • Knowledge management and sharing systems should be put in place to promote sharing of best practices. • Systems should be put in place that will deal with the value chain of corruption, not just public servants but

both corrupt and the corrupted should be dealt with. • Establish mechanisms to promote change of perception. • Establish dedicated programmes, units and resources on anti-corruption in the Service Delivery War Room.



6.3 Methods of investigation

Sectors of society should encourage their investigators, when investigating cases of alleged corruption, to consider the following methods:

• Analysis of documents: investigators usually obtain a great deal of documentary evidence when conducting fraud investigations. It is critical that the investigator understands the relevance of this evidence and how it should be preserved and presented. Investigators should always keep in mind that documents can either help or hurt a case, depending on which documents are presented and how they are presented.

• Interviewing theory and application: this is a question and answer session designed to elicit information. It differs from an ordinary conversation in that an interview is structured, not free-form, designed for a purpose and might consist of only one question or a series of questions. Investigators are taught amongst others characteristics of a good interview, types of questions and legal considerations when conducting an interview.

• Covert examination: this is an investigation technique designed to obtain evidence by the use of agents whose true role is undisclosed to the target. There are two major forms of covert operations: undercover and surveillance. It should however be advised that investigators in the province should consider legal implications before using this type of investigation.

• Sources of information: to provide information to help develop a case. These include government systems like PERSAL and municipal payroll systems, commercial sources of information, directories, banks and financial institutions, national and international law enforcement agencies.

• Accessing information online: investigating via internet searches and online public database searches.

• Data analysis and reporting tools: data mining and analysis, using data analysis software, core data analysis functions, reporting and case management software.

• Digital forensics: the increasing use of internet and other technology in all aspects of life has created new opportunities for technology to be used in perpetrating almost every type of fraud, and in most cases, investigators gather some types of digital evidence. These include conducting an investigation involving computers, forensic examination and analysis, digital forensic software and computer investigation and computer forensics.

• Tracing illicit transactions: Financial interviewing is not unlike other kinds of interviewing. But in financial interviews, evidence often develops in bits and pieces that, when viewed separately, might appear to lead nowhere. This method focuses on comprehensive guidelines for information to be collected in financial interviews, direct and indirect methods of tracing financial transactions and locating hidden assets.

• Reporting standards: ensuring that investigators write good quality investigation reports that do not comprise grammatical errors, reporting mistakes, incorrect structure, references. A well-written report will omit irrelevant information, thereby allowing pertinent facts to stand out.

6.4 Internal Capacity

Sectors need to ensure that internal capacity is also available to deal decisively with reported cases of alleged corruption. For larger departments within sectors it might be worthwhile expanding their internal capacity. Analysis of past years’ case loads and expenditure will give a clear indication on this. This is a cost effective approach as in some instances external agencies tend to be expensive when conducting investigations.

Sectors are encouraged to arrange capacity building programmes for their investigators to facilitate improved case resolution for cases of alleged corruption emanating from the National Anti-Corruption Hotline for the Gauteng Provincial Government departments. This will assist to eliminate backlog and increase the rate of case resolution in the province.



The province will improve the investigative and anti-corruption skills and capacity within sectors. Principals of individual sector components should be required to review the placement and appropriate expertise of their current anti-corruption practitioners. These investigators as capacitated in pro-active anti-corruption skills will be able to guide their colleagues in preventative measures. Training should also be linked to national and international standards and methodology to ensure a more uniform and professional way of dealing with investigations throughout the province.

Organisations should ensure the appropriate capacity, capability and resources (including sophisticated technology and budget) for investigation of allegations of fraud and corruption. This may include having the appropriate organisational structure, with the anti-corruption head having unrestricted access to the head of the organisation. There should be a formalised policy or Standard Operating Procedure in place, which outlines amongst others how cases will be allocated. Organisations may also make use of external capacity, however this must be overseen by someone within the department and there should be clear terms of reference for the external investigator.

To this end organisations should:

• Establish internal capacity and capability to investigate all allegations of corruption. The capability should be independent, professional and formally mandated to undertake investigations, without fear and favour.

• Develop a governance framework to ensure that the manner in which cases are allocated for investigation is done so in an objective and responsible manner, together with the necessary neutral checks and balance; sets out criteria for the appointment of external investigators (if required) and ensure that employees involved in investigations are vetted.

6.5 Cooperation with other agencies

Section 34 of the Prevention and Combating of Corrupt Activities Act requires that all matters (i.e. theft, fraud, extortion, forgery and uttering of a forged documents) involving amounts of over R100 000 should to be reported to the South African Police Service by the Head of Department or equivalent or designated official. Sectors are encouraged to develop guidelines requiring all criminal matters are reported to the relevant law enforcement agencies. Sectors should however ensure that, as part of skills transfer, their internal investigators are educated by external investigators while conducting investigations concerning their respecting sectors. The benefit of the process is that investigators can learn best practices and share experience with each other.

To this end organisations should:

• Develop a framework supported by relevant procedures and/or processes, pertaining to which matters are required in terms of legislation and/or other policy provisions to be reported to law enforcement agencies.

• Improve coordination of cooperation between agencies, including through the establishment of formal approved Memorandum of Understandings with the relevant law enforcement agencies.

6.6 Conclusion

The chapter discussed the provincial approach to investigating cases of alleged corruption received from the National Anti-Corruption Hotline. Sectors are also advised on the methods of investigation and are requested to have internal investigative capacity as well as organising assistance from other anti-corruption agencies. These will fast track finalisation of complex cases. The next chapter deliberate on the implementation process and role of different players.



CHAPTER 7: RESOLUTION

7.1 Introduction

The discussion on this chapter will be centred on the resolution of cases of alleged corruption by sketching the disciplinary process to be taken, implementation of improved controls, arranging for civil recovery and criminal prosecution and explore the possibility of making related recoveries by engaging other agencies like the Asset Forfeiture Unit at the National Prosecuting Authority.

7.2 Disciplinary Action

The Minimum Anti-Corruption Capacity requirements advise that for an effective disciplinary procedure the following should be in place:

• Disciplinary code in place: The provincial departments should use the Public Service Co-ordinating Bargaining Council’s ‘Disciplinary Code and Procedures for the Public Service’.

• Sufficient industrial relations policy: There should be sufficient Labour / Industrial relations specialists within the components of sectors to ensure the swift, fair and procedurally correct resolution of cases. To determine the right levels of capacity one should consider the number of cases. There should be no significant vacancies.

• Suitably qualified Labour Relations Officers: Labour relations officers should have appropriate training and/or experience. A tertiary qualification (preferably a university degree for senior personnel) in labour relations would be preferable.

• Make use of suitably qualified Presiding Officer: Independent presiding officers should be used. They should also be sufficiently and appropriately experienced to hear the cases being brought before them, and have significant knowledge of disciplinary procedures.

• Special arrangement in place for complex cases: Special care should be taken that the presiding officers who are in charge of complex fraud and corruption matters are competent to do so. It might be prudent to use a legal practitioner and sectoral bargaining council arbitrator in complex legal cases. See clause 7.3.c and f of PSCBC Resolution 1 of 2003 - Schedule 1.

• Management reports on outcomes of disciplinary actions compiled: Quarterly reports should be compiled on the outcomes of disciplinary cases and these should be communicated to the relevant managers / committees. This could be the same report generated by the information management system.

7.3 Improved Controls

The National Treasury’s Risk Management Framework for the Public Service identifies the following focus areas for internal controls:

• Adequate segregation of duties: Duties and responsibilities in authorising, processing, recording, and reviewing transactions and events should be separated among individuals and not left to one person.

• Custody and accountability for resources: Access to resources and records must be limited to authorised individuals - who are accountable for their custody or use.

• Prompt and proper recording and classification of transactions: This is done to ensure that information retains its relevance and value to management in controlling operations and decision-making, and to ensure that timely and reliable information is available to management.

• Authorisation and execution of transactions: This requires that employees execute their assigned duties in accordance with directives - and within the limitations set by management or legislation.

• Documentation: Internal control policies and procedures, and all transactions and significant events, must be clearly documented.



• Management supervision and review: Competent supervision must be provided - including assignment, review and approval of an employee’s work.

• Additionally, specific computer controls should be put in place.

One of the recommendations of all investigation report should be on operational improvements: this would include recommendations to implement ethics and fraud and corruption risk management strategies and system, process enhancements. The following recommendations and control weaknesses may be highlighted in reports. However, should not be seen as a ‘blueprint’ for reporting purposes:

• Corrective Action: This would include issues that will need to be remedied as a result of the investigation outcome;

• Disciplinary Action: This would include any recommendations on suspension and disciplinary action that may be taken against an official. This process must include the Team Manager/Head of Department, Human Resource manager and Line Manager of the staff member involved. This process must be guided by the Suspension Guide and Disciplinary Procedure Guide.

• Criminal Action: An Investigator has an obligation to report any criminal activity to the South African Police Services and this should be included in the report;

• Operational Improvements: This would include recommendations to implement financial crime risk management strategies and system, process enhancements;

• Further investigation: This would include any issues that were identified during the course of the investigation that may require additional work to identify further suspected fraudulent or improper activity.

7.4 Civil Recovery

In order for the organisation not to bear the burden of the financial loss through fraud and corruption, organisations should implement formal procedures for recovery of funds. Organisations should develop a framework relating to institution of recovery of any losses as a result of corruption and related activities (Refer to the textbook on Effective Financial Management). The case management database is timeously and accurately updated to reflect progress on all fraud related recoveries and all documents received or generated in support of any recovery action taken are scanned for record keeping purposes.

Civil recovery takes place when the company/department/municipality institutes a delictual claim against the staff member, client or any third party that has caused harm or damage (financial / non-financial loss) to the company/department/municipality. Civil recovery can commence by way of a summons or notice of motion in the High Court or Magistrates Court. The jurisdiction of the Regional Magistrates Court as from March 2014 is limited to R400 000. Where the value exceeds R400 000 the High Court has jurisdiction to accommodate such claims. Refer to Government Gazettes, namely, No 37450 of 18 March 2014; No 37477 of 27 March 2014; No 37448 of 18 March 2014, which amended the monetary regulations of small claims courts, magistrates’ court and the High Court.

Important to note that, in order to follow proper processes, the civil recovery claims must be negotiated with the Legal Services and the Office of the State Attorney.

Investigation personnel are tasked with ensuring that fraud related recoveries are timeously identified, via on-going assessment of cases in progress, and action, to reduce the risk of financial arising from irregularities investigated. All fraud related recoveries should be handled via the following procedures:

• Recovery action should be initiated by the responsible Investigator within 5 working days from date of receipt of any investigation or immediately after discovery of suspicious activity;

The recovery action plan should include:

• Establishing the most appropriate recovery action after ITC/Experian (we are of the view that let’s not use product specific names but rather use the word “Consumer Credit Profile” search engines;

• Deeds Registrar enquiries are done and taking into consideration the investigation findings; • Identification of any department personnel to whom intended recovery action must be communicated prior

to any action being taken, to ensure compliance with the department’s debt handling procedures; • Agreement should be reached with the relevant department personnel as to the most appropriate recovery

action and responsibilities should be assigned;



• Where a party to the investigation is liable to repay monies and undertakes to refund the department, a Deed of Settlement should be completed with the Debtor in the prescribed format;

• The Deed of settlement must be a mutual agreement which must only be finalised after consultation with the debtor and the staff member representing the company. The consultation should be conducted in a professional manner and the relevant evidence should be produced to the debtor. The requirements of the consultation should be in line with the interview requirements and the agreement should be free and voluntary. The debtor must declare that he is in a ‘sound and sober’ state at the time and that he has not been improperly influenced in any way to sign the deed of settlement. The investigator must in no way make any promises in return for acceptance of the deed of settlement. The deed of settlement must be completed in the presence of a witness and the procedure should be recorded. The debtor must be provided with the relevant evidence in support of the findings and information on how the debt was calculated;

• In cases where a Deed of settlement has been signed and no payment has been received, a letter of demand must be issued to the debtor. In the event that no response is received notification is sent to debtor management who will take further steps on the recovery;

• The Investigator must ensure that the case management database is timeously and accurately updated to reflect progress on all fraud related recoveries;

• The Investigator must ensure that all documents received or generated in support of any recovery action taken are scanned for record keeping purposes.

The recovery of funds can take place in different forms i.e. civil recovery, criminal recovery, withholding/recovery from pension funds and Asset Forfeiture Unit. The Minimum Anti-Corruption Capacity requirements advise sectors to have a policy in place which specifies that it will be attempted to recover losses sustained through crime, for example from the perpetrators. Some discretion should be allowed as it might not always be in the best interest of the department to follow this route due to, for example, unfavourable cost-benefit ratios. A clause that such losses will be recovered should be included in appointment contracts.

7.5 Criminal Prosecution

Criminal recovery takes place when an accused is found guilty in a criminal court and the prosecutor requests a Section 300 order in terms of the Criminal Procedure Act which is a compensatory order, where the victim is monetary compensated. This order will serve as a money / civil judgment against the accused. Criminal recovery claims must be negotiated with Group Legal Services.

Once an investigation results in the identification of sufficient evidence to support the initiation of a criminal investigation by the SAPS, the responsible Investigator must first ensure that the evidence is discussed with the responsible manager, to ensure that criminal cases are only initiated where valid grounds exist for doing so. The Investigator and Team manager must ensure the following:

• The responsible manager must review the evidence gathered and inform the investigator concerned whether criminal action must be progressed;

• Where a criminal investigation by the SAPS is to be initiated, prior written notification must be forwarded to the relevant Business Unit Head, to ensure compliance and that evidence thereof is maintained. The report issued will suffice for this purpose;

• All suspect, complainant and investigator affidavits must be prepared in the prescribed format and copies included in the SAPS docket, along with certified copies of all relevant evidence referred to in any affidavits;

• Ensure that original documents are not handed over to the SAPS when opening a criminal docket; this is subject to debate, rather let us say the original evidentiary documents should be preserved and presented to SAPS or NPA at an appropriate time or we can phrase it in the following manner “Ensure that certified copies of original document are used when opening a criminal docket with SAPS, original evidentiary documents should be preserved and presented to SAPS or NPA at an appropriate time”;

• The South African Police Service docket must be registered at the correct SAPS unit; • All criminal case information i.e. SAPS case number and investigating officer details must be updated on

the case management system before the matter is handed over to the responsible manager for further action;

• The Investigator must ensure that regular follow up is made on the status of criminal cases and that the case management system is updated accordingly;

• A copy of all evidence presented to the SAPS must be scanned for record keeping; • The Investigator must ensure that all queries of the public prosecutor and the SAPS are timeously attended



to and that he/she is adequately prepared for affording evidence in court; • Upon finalisation of the criminal matter the case management system must be updated with all relevant

fields.

7.6 Referring to other agencies

In the event that a criminal case has been registered, the Investigator must explore the possibility of making related recoveries by engaging the Asset Forfeiture Unit of the National Prosecuting Authority. In cases where referral to other more appropriate institutions is con sidered, the mandates of these institutions should be taken into con sideration in order to facilitate an informed decision:

Table 6: Nature of cases to be referred to anti-corruption agencies

Nature of case Agency to refer toAll criminal acts of theft, fraud, bribery, extortion, corruption, including any matter that falls within the ambit of S34 of the Prevention and Combating of Corrupt Activities Act.

South African Police Service (SAPS)

Impacts on security of State or the integrity of a department. State Security Agency (SSA)

Request is made when an audit is required in a matter that involves public funds.

Auditor-General (AG)

Serious cases of malpractice or maladministration in State Institutions, especially where public funds are involved and can be recovered civilly.

Special Investigating Unit (SIU)

Serious cases of corruption relating to members of the Executive, Legislature or elected officials.

National Prosecuting Authority (NPA) or Directorate for Priority Crimes (DPCI also known as the HAWKS)

When referring a case to an appropriate institution, departments should follow the following processes:

• Draft a report that includes a description of the offence and the particulars of suspect(s) or witness (es). • This report will serve as reference point for the records of both the referring and the receiving agencies. • Collect exhibits and other corroborating documentation that is available. This is for the record of both the

referring and the receiving agency, especially if there is a threat that evidence might be tampered with. • Collect any other information that is available and may be of help to an investigator. • Identify the agency to which the case can be referred. The matter can first be discussed telephonically or in

a meeting with the chosen agency. • Formally refer the case to the chosen agency with due consideration to the security classification attached

to the investigation of the relevant cases.

7.7 Conclusion

The chapter focused on the resolution of cases of alleged corruption by sketching the disciplinary process to be taken, implementing improved controls, arranging for civil recovery and criminal prosecution and exploring the possibility of making related recoveries by engaging other agencies. The next chapter will discuss the provincial approach to investigation.



CHAPTER 8: IMPLEMENTATION AND ROLE-PLAYERS

8.1 Introduction

The purpose of this chapter is to outline the implementation process and functions of the following role-players:

• Office of the Premier; • Gauteng Provincial Forensic Audits in the Gauteng Department of Finance; • Gauteng Department of Community Safety; • Gauteng Department of Cooperative Governance and Traditional Affairs; • Provincial Anti-Corruption Coordinating Committee; • Gauteng Intergovernmental Anti-Corruption Forum; • Provincial Anti-Corruption Forum; and • Gauteng Anti-Corruption Working Group.

8.2 Office of the Premier (Integrity Management Unit)

The Office of the Premier’s primary function in this regard is to provide strategic leadership in the prevention of corruption by ensuring that high standards of organisational ethics is maintained and promoted throughout the province. The Office of the Premier must also eliminate potential risks associated with corruption in a proactive manner. The Office of the Premier will support the development, implementation, monitoring and evaluation of the provincial anti-corruption strategies and action plans to give effect to the relevant strategic intentions outlined in the strategy.

The Office of the Premier provides strategic direction to the Gauteng Provincial Government departments regarding the following:

• Ethical organisational culture; • Policies and procedures; • Training and awareness programmes; • Corruption risk management systems; and • Development of action plans by all Gauteng Provincial Government departments to give effect to the

implementation programme of the strategy.

The Office of the Premier will establish an Integrity Management Unit to drive the agenda of integrity promotion across government departments with specific focus on the following:

• Forensic and Anti-Corruption • Vetting and Compliance • Security Management

The functions of the Office of the Premier are the following:

• Advise the Heads of Department Forum and the Gauteng Executive Council on the status of anti-corruption programmes.

• Serve as the Chair for the Provincial Anti-Corruption Coordinating Committee and be the Secretariat of the Gauteng Province Anti-Corruption Forum.

• Provide guidance on the development of anti-corruption policies and strategies. • Organise, depending on the availability of funds, ethics and anti-corruption capacity building programmes

for officials within the Gauteng Provincial Government departments and municipalities. • Oversee the coordination of anti-corruption prevention in the province and provision of efficient support to

provincial government departments on anti-corruption strategies. • Coordinate and plan annual anti-corruption programmes.



• Support programmes that are intended to promote ethical conduct in Gauteng. • Monitoring and evaluation of the anti-corruption programmes. • Provide quarterly status reports to the Heads of Department Forum on the implementation of anti-corruption

programmes by the Gauteng Provincial Government departments. • Represent Gauteng Provincial Government departments in the national anti-corruption forums.

As indicated, it is imperative for the Gauteng Provincial Government to have a dedicated integrity management unit that has clear strategic objectives related to fighting corruption thereby strengthening provincial’s effort to combat corruption.

8.3 Gauteng Provincial Forensic Audits

As discussed in Chapter Six, Gauteng Province has a centralised Gauteng Provincial Forensic Audits at Gauteng Treasury which has been mandated by the Premier to manage cases received from the National Anti-Corruption Hotline. The services of the PFA are directed towards the fair and objective deterrence, prevention, detection, and investigation of fraud and corruption. The Gauteng Provincial Forensic Audits is also responsible for the following:

• To investigate all fraud and corruption impacting or having the potential to impact on Gauteng Provincial Government. All practices and procedures utilised during investigations shall comply with the requirements of the legislation, regulations and frameworks of the Republic of South Africa and other international laws as applicable.

• To ensure that the Gauteng Provincial Government departments implement the recommendations arising from investigations and audits. An implementation plan should be in place within thirty (30) days of such report and proof must be submitted to the Gauteng Provincial Forensic Audits.

• To manage relationships with supporting relevant law enforcement agencies by coordinating signed Memorandums of Understanding between these agencies and Premier.

• To facilitate fraud and corruption risk assessments that are aimed at identifying and addressing fraud and corruption risks which have an impact on the achievement of the objectives of the Gauteng Provincial Government departments. The proactive anti-corruption programmes must then be designed as action plans to minimise the departments’ exposure to corrupt activities.

• To conduct fraud detection reviews in the province based on departmental requests focusing on the fraud risks identified during the fraud risk assessment process.

• To coordinate integrity workshops in order to educate and create awareness on the manifestation of fraud and corruption within the public service in Gauteng and information of the channels available for reporting.

• Develop information systems to identify and detect fraud and corruption threats and to address internal and external threats to Gauteng Provincial Government.

• Serve as the Secretariat of the Provincial Anti-Corruption Coordinating Committee and also provide support to the Office of the Premier as the Secretariat of Gauteng Province Anti-Corruption Forum.

8.4 Gauteng Department of Community Safety

The Gauteng Department of Community Safety derives its mandate primarily from Section 206 (3) of the Constitution of the Republic of South Africa, 1996, (the Constitution) which, inter alia, entitles the province to monitor police conduct and to oversee the effectiveness and efficiency of the South African Police Service (SAPS), including receiving reports on the functioning or performance of the police service. The Gauteng Department of Community Safety will support the implementation of the provincial anti-corruption programmes by assisting with the following:

• Facilitate, coordinate and monitor all criminal investigations and court proceedings emanating from investigations within Gauteng Provincial Government.

• Ensure that all the Gauteng Provincial Government departments report all criminal activities to the South African Police Services and then to the Gauteng Department of Community Safety.

• Develop a register of all criminal matters in Gauteng Provincial Government and ensure successful conclusion of all such cases.



8.5 Gauteng Department of Cooperative Governance and Traditional Affairs

The Gauteng Department of Cooperative Governance and Traditional Affairs derives its mandate from the Constitution of the Republic of South Africa, 1996 (Act 108 of 1996) and other related national and provincial legislation. Section 152 (2) of the Constitution states that a municipality must strive, within its financial and administrative capacity, to achieve the objects as set out in subsection (1). It requires municipalities to provide a democratic and accountable local government. The Gauteng Department of Cooperative Governance and Traditional Affairs will support the implementation of the provincial anti-corruption programme by ensuring the following:

• Support the Office of the Premier to coordinate the biannual Gauteng Intergovernmental Anti-Corruption Forum.

• Provide guidance to municipalities in the province on the development of anti-corruption policies and strategies.

• Organise, depending on the availability of funds, ethics and anti-corruption capacity building programmes for municipal officials in Gauteng.

• Coordinate and plan, in consultation with the Office of the Premier, annual anti-corruption programmes for municipalities in Gauteng.

• Serve as a link between municipalities, Office of the Premier and the National Department of Cooperative Governance and Traditional Affairs.

• Ensure that each municipality is represented consistently by a relevant official in the provincial forums. • Assist the Gauteng Provincial Forensic Audits, where necessary, when conducting investigations on

allegations of fraud and corruption in municipalities.

8.6 Provincial Anti-Corruption Coordinating Committee

The Gauteng Provincial Anti-Corruption Coordinating Committee which consists of representatives from the Gauteng Provincial Government departments was formed for the following objectives:

• To ensure a robust process of the implementation of the provincial anti-corruption framework. • To oversee and monitor the implementation of the provincial anti-corruption framework. • To report on the implementation of departmental and sectoral anti-corruption programmes. • To serve as a podium for information sharing on anti-corruption and fraud initiatives relating to prevention,

detection, investigations, as well as prosecutions i.e. processes that government departments need to follow.

• To ensure effective and efficient coordination that is integrated on anti-corruption initiatives at the Gauteng Provincial Government departments.

• To prevent unnecessary duplication of initiatives and efforts in the fight against corruption in Gauteng public service.

• To establish a system for information collection, coordination, dissemination and management on provincial anti-corruption strategies and challenges.

The Provincial Anti-Corruption Coordinating Committee meets quarterly and is aimed at all Chief Financial Officers, Risk Managers, Ethics Officers or Ethics Managers, Security Managers and Head of Anti-Corruption Units in all the Gauteng Provincial Government departments. All the Gauteng Provincial Government departments are expected to regularly present progress on the implementation of their anti-corruption programmes to the Provincial Anti-Corruption Coordinating Committee. The activities of this committee must be reported on an annual basis to the Heads of Department Forum.

8.7 Gauteng Intergovernmental Anti-Corruption Forum

In order to facilitate the implementation of the provincial anti-corruption programmes the Gauteng Intergovernmental Anti-Corruption Forum was formalised to meet annually in order to report on progress and challenges with the implementation of sectoral anti-corruption strategies and to share findings. The overall objectives of the Gauteng Intergovernmental Anti-Corruption Workshop are as follows:



• To identify trends in ethics and corruption prevention and share best practice; • To discuss the need to implement minimum anti-corruption capacity requirements at Gauteng municipalities; • To deliberate on the need for alignment of anti-corruption measures between the national, provincial and

local spheres of government; and • To outline measures for resolving corruption cases in departments and municipalities.

Important to note that the forum will comprise of officials from departments and municipalities but other officials from national departments and other sectors will attend also attend as per invite. Departments and municipalities are encouraged to ensure that they are represented consistently by a relevant official in the provincial intergovernmental anti-corruption meetings.

8.8 Gauteng Province Anti-Corruption Forum

Consultation with various sectors in the province came up with a strong view that consideration should be explored to form a multi-sectoral anti-corruption structure in the province as stated in the Resolutions of the Summit and the Gauteng Anti-Corruption Strategic Framework. The purpose of the Gauteng Province Anti-Corruption Forum is to work collectively in order to create a societal environment that is not conducive to corruption and the abuse of power. The Forum will aim to achieve this purpose by implementing the following objectives:

• Identify prominent corruption related issues facing all sectors of society, and - develop fraud risk management strategies for addressing these issues; - assign responsibility for implementing the strategies; - monitor the implementation; and - hold those responsible for implementation accountable.

• Share information and best practice on sectoral anti-corruption work; • Explore synergies to leverage and consolidate collective efforts where possible; • Advise the Gauteng Provincial Government on initiatives and strategies to combat corruption; and • Advise sectors on the improvement of sectoral anti-corruption strategies.

The sectors of society which form part of the forum must sign a Memorandum of Understanding which is a written agreement to identify their working relationships and guidelines. This Memorandum of Understanding for the Provincial Anti-Corruption Forum will outline areas of common understandings and also clarifies what kind of support will be provided and creates more meaningful ways for communication or participation. It also defines the rights and responsibilities of each involved entity.

The Secretariat of the Gauteng Province Anti-Corruption Forum will be provided by the Office of the Premier supported by the Gauteng Provincial Forensic Audits. Sectors, through the Gauteng Anti-Corruption Working Group, will also develop a Joint Anti-Corruption Programme.

Diagram 1: Gauteng PACF Structure

REPORTING LINES

Gauteng Anti-Corruption Working Group

Gauteng ProvincialLegislature

Secretariat

Provincial Audit Committee

Gauteng Anti-Corruption Forum

Gauteng Anti-Corruption Summit



8.9 National Anti-Corruption Forum

The National Anti-Corruption Forum, which is the major anti-corruption body in the country responsible for consolidating and articulating a National Integrity Framework to address corruption, is comprised of various sectors, namely civil society, business, labour and government. Each sector is represented by ten members nominated by their respective constituencies. The National Anti-Corruption Forum was established to combat and prevent corruption, build integrity and raise awareness, and was launched in South Africa in Cape Town on June 2001. The objectives of the National Anti-Corruption Forum are as follows:

• Contribute towards the establishment of a national consensus through the co-ordination of sectoral strategies against corruption;

• Advise government on national initiatives on the implementation of strategies to combat corruption; • Share information and best practice on sectoral anti-corruption work; and • Advise sectors on the improvement of sectoral anti-corruption strategies.

The Gauteng Province Anti-Corruption Forum should support the implementation of the National Anti-Corruption Programme as developed by the National Anti-Corruption Forum. This includes to ensure that regional and community-based anti-corruption forums are operational by establishing these (where they do not exist) and maintaining them (where they do exist).

8.10 Gauteng Public Service Integrity Commissioner

As an additional mechanism to ensure the objective and effective implementation of anti-corruption measures, an independent Public Service Integrity Commissioner based in the Gauteng Provincial Legislature should be retained to consider key anti-corruption measures relating to the political office bearers (Members of the Provincial Legislature including Members of the Executive Council).

8.11 Conclusion

This chapter focused on the roles of different role players in implementing the framework. These include the Office of the Premier, Gauteng Provincial Forensic Audits, Gauteng Department of Community Safety, Gauteng Department of Cooperative Governance and Traditional Affairs, Provincial Anti-Corruption Coordinating Committee, Gauteng Intergovernmental Anti-Corruption Forum, Gauteng Province Anti-Corruption Forum, National Anti-Corruption Forum and the Gauteng Public Service Integrity Commissioner. The next chapter will outline the reporting and review mechanisms of the strategy.



CHAPTER 9: REPORTING AND REVIEW9.1 Introduction

The chapter will outline reporting channels which include Gauteng Executive Council. Sectors are encouraged to put in place mechanisms for their components to report monthly, quarterly and annually. These will assist to compile the annual anti-corruption report to be submitted to the Department of Public Service and Administration. The chapter further indicate the reviewing period for the framework. Awareness, training and education as well as communication and signing off of the framework are discussed. The conclusion is drawn to summarise the whole framework.

9.2 Gauteng Executive Council

The custodian of this policy is the Gauteng Executive Council and will be supported by the Gauteng Province Anti-Corruption Forum. There will be quarterly reporting from departments to the Gauteng Executive Council, while the Office of Premier plays an oversight on this level of reporting.

9.3 Monitoring and Evaluation

The Office of the Premier must ensure that progress reports are prepared and coordinated by all the sectors through various structures formed like the Provincial Anti-Corruption Coordinating Committee; the Intergovernmental Anti-Corruption Forum; the Gauteng Anti-Corruption Forum and Heads of Department Forum. Different reports shall be prepared describing actions taken by sectors towards implementing strategies outlined in the implementation plan. The Office of the Premier, supported by the Gauteng Anti-Corruption Working Group, will then prepare a consolidated annual report to be submitted to the Gauteng Executive Council, Gauteng Legislature and Department of Public Service and Administration. The reporting process for the strategy and implementation plan will be as follows:

i) Monthly Progress Reports: sectors are urged to ensure that their individual units have internal mechanism to monitor monthly implementation of the strategy. For example, Heads of Anti-Corruption Units in the Gauteng Provincial Government departments must submit monthly progress reports to their respective Heads of Department. Individual unions, businesses and civil society organisations must also ensure that reports on the implementation of the framework are submitted to their principals. These reports, when consolidated, will support the work of the Gauteng Province Anti-Corruption Working Group.

ii) Quarterly Progress Reports: These reports shall include key process and output indicators against set targets for the quarter. The quarterly progress report shall be used for reviewing progress and forward planning by sectors. These will be managed at sector level. For example, Gauteng Provincial Government departments will submit their reports to the Provincial Anti-Corruption Coordinating Committee and these will inform a report to be submitted to the Heads of Department Forum. Business, civil society and organised labour organisation will also use their mechanisms to tract quarterly progress on the implementation of the framework.

iii) Annual Review Reports: At the end of each financial year, an annual progress report on the implementation of the strategy will be prepared to objectively highlight key achievements against set targets, constraints factors, lessons learned and recommendations on the way forward.

iv) Mid-term Evaluation Report: A mid-term evaluation will be conducted in 2018 to provide feedback on progress made with the implementation of planned activities. Any new developments, trends, challenges or outliers identified will be noted and, if need be, amendments to the strategies and activities will be done.

v) End-Term Evaluation Report: An evaluation will be carried out at the end of a five year period (2015 – 2020) to determine success rate in implementation of the framework. The end term evaluation report will consist of achievements, lessons learnt and way forward. This will inform the process of developing a revised strategy for 2020 – 2025.



For mid-term and end-term evaluation reports, actual performance against set target shall be measured and variances established. If any, underlying casual factors for the variance shall be identified and appropriate remedial measures including a review of the objectives or strategies shall be recommended.

9.4 Department of Public Service and Administration

The Department of Public Service and Administration requests regular reports on implementation of anti-corruption programmes from all government departments. This is further supported by the Minimum Anti-Corruption Capacity requirements which advise all the national/provincial departments and organisational components to submit their anti-corruption report to the Department of Public Service and Administration on an annual basis. It is for that reason that the Gauteng Office of the Premier will submit annual anti-corruption report on the anti-corruption activities in the province during each financial year.

9.5 Review of the strategy

A strategy such as this one needs to be reviewed and revised on a continuous basis. However, for the most pragmatic purposes this strategy will be reviewed and revised in 2020 to allow a five year period for implementation of the strategic objectives.

9.6 Awareness, training and education

The Heads of Anti-Corruption Units in provincial government departments and municipalities will be responsible for ensuring that employees and officials receive appropriate training and education with regard to this framework.

The other sectors of society like business, civil society and organised labour federations will also be expected to provide awareness, training and education on this policy and progress will be tracked at the Provincial Anti-Corruption Forum.

9.7 Communication

The Office of the Premier through Provincial Communication Services and Communication Departments within sectors of society will be responsible for the overall communication of this strategy.

9.8 Signing off and approval

The Gauteng Executive Council will be responsible for the approval of the revised Gauteng Province Anti-Corruption Strategy. The Premier signs off the approved framework. Departments, municipalities and sectors will be required to develop their specific strategies accompanied action plans that will give effect to the implementation programme of the framework.

9.9 Conclusion

It is in the above pragmatic, holistic and integrated approach that the Gauteng Provincial Government shows its commitment to fight corruption in all its forms in line with the national government of South Africa and the international world in order to ensure good governance and organisational integrity.



LIST OF REFERENCES

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NOTES


GAUTENGPROVINCIAL GOVERNMENTREPUBLIC OF SOUTH AFRICA

Web: www.gautengonline.gov.za

National Anti-Corruption Hotline for the Public Service:0800 701 701 (Toll-Free)


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