Professional Ethics and Anti-Corruption

Presentation by the Public Service Commission to the

Portfolio Committee on Public Service and Administration

Cape Town

15 May 2002

Presentation on Professional Ethics and Risk Management reports:

RESEARCH AND EVALUATION REPORTS Requirements for Blacklisting Evaluation of Hotlines Risk Management- Provincial Overview Review of South Africa’s National Anti-Corruption

Agencies National Ethics Survey

PROMOTIONAL MATERIALS Explanatory Manual on Code of Conduct Whistle-blowing Guidelines

Blacklisting

Aims To identify existing legislation that

supports blacklisting To establish the gaps in existing

legislation, To consider the creation of an accessible

computerized national data basis of blacklisted companies, and

To establish where such a data basis could be appropriately based

Blacklisting: Research Methodology

Comparative study of foreign countries, international trends and best practices

Consultation with institutions implementing it. Determining the institutional, financial,

procedural and legal requirements for the creation of a computerized national database

Propose efficient and effective mechanisms and structures to detect companies involved in corrupt activities; and

Assess risks underlying blacklisting

Blacklisting findings

Key findings: State Tender Board Act provides for a form of

blacklisting-restriction of persons/ tenderers State Tender Board compiles a list of restricted

suppliers; updated and circulated to all departments. Distribution of and electronic Access to list is problematic

Provincial Tender Boards tend to follow procedures as set out by State Tender Board

Blacklisting findings continued…

PFMA and Treasury Regulations create basis for system that can be equated with the Register of Employees Dismissed used by the Banking Council of South Africa

Some form of black listing occurs in national and provincial departments- process is not uniform or coordinated

Systematic programme of blacklisting is very ambitious, initial implementation may be very litigious

Blacklisting findings continued…

Risks underlying blacklisting: False, misleading or incorrect information Outdated information Information unlawfully obtained More information collated than necessary for

intended purpose Collation of information infringes on rights to privacy

and not in line with the constitution limitations and justification of “reasonable and justifiable in an open and democratic society based on human dignity, equality and freedom”

Blacklisting findings continued…

Short to medium term measures to address corrupt and unethical conduct by companies

Anti-Corruption pacts Supplier/Procurement codes Public Information programmes Whistle Blowing mechanism Administrative processes prior to

blacklisting

Blacklisting findings continued…

Options for housing of blacklisting facility: National Treasury Office of the Public Service Commission Department of Public Service and

Administration

Evaluation of Hotlines

Purpose of the report: To assess the current situation in South Africa

regarding existence, operation and management of hotlines covering public sector corruption

To draw from comparative experience and assess how hotlines can be made more effective

To make recommendations on the feasibility of establishing a national anti-corruption hotline

Hotlines Findings

EXISTENCE AND FUNCTIONING OF HOTLINES

Only eight National Departments have established hotlines

Trade and Industry Public Works Water Affairs and Forestry Home Affairs Correctional Services Justice and Constitutional Development South African Police Service South African Revenue Services

Hotlines Findings continued…

Three provinces have not established hotlines: Eastern Cape North West Free State Province

Provinces with the most efficient hotlines are those that are well resourced

Only one department (Trade and Industry) has established International Best Practice on Hotlines

Management of information and cases

In Gauteng, reported cases are captured and compiled on a monthly basis. An estimated 54% of the reported cases coming through hotlines were solved.

In Northern Cape reported cases are captured and callers allowed to remain anonymous. Calls are not recorded

In Mpumalanga, 3600 calls were received in 2001. Twelve criminal charges were laid against individuals

In Western Cape Province there were a total of 83 recorded calls, resulting in 27 successful disciplinary/criminal being prosecuted

Hotlines Recommendations

There is a need for the establishment of a national hotline either in the Public Service Commission or Office of the Auditor-General

A data management system should be established for the national hotline to provide a coherent recording of disclosures

Hotlines Recommendations continued…

Training courses are needed to support the specialized staff working on hotlines

A Standard Investigating Procedure should be developed for the hotline investigation unit

There is a need for the implementation of International Best Practice

Responsibility for day to day operations of the hotline system must be at the appropriate management level to ensure buy in of senior managers and staff in the organization

Risk Management: Provincial Perspective

First report on risk management practices in the public service

Provides overview of the status of integrated risk management in the public service

Emanates from consultative workshops held in seven of the nine provinces in 2001. Workshops were done in partnership with the KZN Provincial Treasury

224 senior and middle managers attended

Risk Management: Workshop Aims

Provided officials with a theoretical framework of risk management

Provided understanding on the roles, responsibilities and relationships in the application of risk management

Provided them with an overview of the risk management experience in other provinces.

Provided an opportunity to discuss relevant provincial barriers

Risk management findings

Awareness is high at the level of accounting officers and internal audit components due to legal imperatives of PFMA

Formal Commitment to risk management processes exists at highest levels

Limited integration into strategic management processes is taking place

Most fraud prevention plans are not based on risk assessments

Departments lack capacity and resources to ensure effective learning, provision of background information, knowledge, skills and tools to implement risk management

Risk management: Findings

Consultants drive risk management processes. Contents of reports not cascaded to lower level staff

Officials at operations level (9-12) not empowered to implement risk management practices

Treasury Regulations and private sector good practice do not provide adequate framework for the public service

5 provinces have not repealed the Exchequer Act. Some arrangements are in conflict with PFMA and it leads to confusion

Risk management findings

Pockets of excellence exist in some provinces Comprehensive PFMA compliance monitoring

system was developed by the Eastern Cape. Best practice was developed and implemented in

KZN and Western Cape Accountability framework Role clarification Implementation principles and approaches Excel programs were developed to manage and

monitor risk

Compliance by provincial departments : April 2001

100% 80-90% 50-80% 20-50%

Gauteng,KZNN WestW CapeLimpopo

None Eastern Cape

N CapeF State

Audit of National Anti-corruption agencies

Purpose: To conduct an audit of agencies,

entrusted with aspects of the anti-corruption mandate

To establish the possibility of rationalizing agencies with similar functions

To contribute towards the development of a national anti-corruption strategy for the public service

Aspects of the assessment:

Aspects that were investigated: Mandates Structural arrangements Legislative reform Resource constraints Public perceptions Case Loads Performance Coordination

Mandates of Agencies

Some organizations audited have very specific mandates, e.g. Recovery of public funds and assets (Asset Forfeiture Unit and SIU)

In other cases, mandates are broad and overlap Public Service Commission, AG and Public Protector

investigate maladministration SIU and SAPS anti-Corruption Unit are the only

institutions focusing solely on corruption

Resources of agencies

Few bodies believe they have sufficient resources ICD only able to fill 100 of 500 desired posts

while the Public Protector could only fill half Training is seen as a top priority by all agencies Levels of interaction with the public vary across

agencies. This area requires attention. More needs to be done to determine client

satisfaction Forum shopping occurs as a consequence of the

multiplicity of agencies

Case Loads

Difficult to obtain information on cases Only certain agencies have readily available

figures (Independent Complaints Directorate, SIU and SAPS Commercial Crime Branch)

Significant backlogs that need to be dealt with urgently. AG is busy with a project in this regard

Cases land up at agency not best placed to deal with e.g. Public Protector, PSC, ICD and Directorate Special Operations

Performance and cooperation

Performance can be improved through better use of shared resources

Interaction does take place between agencies- specifically prosecuting authorities

No formal agreement regarding coordination of case related information

Need for formal co-operation exists

Single agency

A Single agency will not be appropriate at this stage

Real concerns exists about the location, funding and mandate

Not merely encouraged because existing mechanisms are not functioning optimally

Priority to obtain current agencies with some rationalisation and formalising coordination arrangements

Complimented by an audit on the capacity of anti-corruption units in the various national and provincial departments in 2002

National Ethics Survey 2001

Undertaken in partnership with KPMG, Transparency South Africa

First ever survey of its kind Purpose: to assess the ethical infrastructure

in place in public and private institutions Provides snapshot of current ethics practices A total of 166 respondents participated: 30

public service, 76 private sector, 60 civil society respondents

Ethics Survey: Focus areas

Ethics documents Ethics related evaluations Responsibility for the ethics function Resolution of ethics problems Reporting mechanisms Ethics training Performance evaluation Risk assessment Future ethics management

Ethics Survey findings

Flaws in basic ethics infrastructure- many organisations have not integrated ethics management practices into other management processes

Few organisations train new employees on the code of conduct

Many organisations do not assign ethics management to a senior manager

Ethics Survey findings continued…

Findings continued: 54% of respondents had access to

confidential reporting mechanisms 84% of organisations surveyed have

written documents outlining organisational values and principles

Most organisations have codes of conduct and whistle blowing mechanisms

Explanatory Manual On The Code Of Conduct

Serves as guide to employees to understand and resolve ethical dilemmas in their daily work

Five focus areas: serving government serving the public professionalism and integrity conflict of interest working in the service

Produced 1 million pocket-sized booklets to be distributed to all public servants

Promotion and implementation of Whistle Blowing mechanisms

Guidelines have been produced in easy to use, booklet format to serve as reference framework

Participatory and learning orientated workshops (in conjunction with Open Democracy Centre) are being conducted in the provinces to familiarize public servants with the Protected

Disclosures Act to implement best management practice on

whistle blowing mechanisms