PUBLIC SECTOR
PROGRESS REPORT ON THE IMPLEMENTATION OF THE SUMMIT RESOLUTIONS TO THE PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION– 26th MARCH 2003
INTRODUCTION
The Representatives of government who attended the Public Sector Anti-Corruption Conference in 1998 gave a report of that conference at the Summit. That report included, inter alia, measures that government had taken to put in place the law, regulations, procedures and institutions to fight the scourge of corruption. The Summit subjected these measures to critical review to assess whether they were effective and adequate to fight corruption so that Government could introduce such changes as may be considered correct and necessary. What follows is a bold attempt, based on some of those measures to create a climate hostile to corrupt practice in our country.
1.1 A review and revision of legislation:
- The new bill makes provision for a much more detailed list of offences and penalties, unlike the Corruption Act of 1992. It will be more effective and detailed than its predecessor, amongst others.
- The common law offence of bribery is re-introduced, as well as a section dealing with the possession of "unexplained property".
The Financial Intelligence Centre Act, 2001, sets up a regulatory anti-money laundering regime which is intended to break the cycle used by organised criminal groups to benefit from illegitimate profits. By doing this the Act aims to maintain the integrity of the financial system. Apart from the regulatory regime the Act also creates the Financial Intelligence Centre.
The Financial Intelligence Centre is established in order to identify the proceeds of unlawful activities and to combat money laundering activities. It aims to do so by making information collected by it available to investigating authorities (the Police Service, the Scorpions, the Special Investigating Unit and the Asset Forfeiture Unit), the intelligence services and the Revenue Service. The Financial Intelligence Centre will also exchange information with similar bodies in other countries.
This Act came into effect on 1 April 2000, and part of a broader government strategy on improving financial management in the public sector. Treasury Regulation 4.3, determines that national and provincial departments should report details relating to financial misconduct cases to the Public Service Commission upon finalisation.
In terms of the PFMA, financial misconduct can be defined as conduct by an official, which entails any material loss through criminal conduct, and/or unauthorized, irregular, fruitless and wasteful expenditure.
Forty national and provincial departments reported finalized misconduct
cases relating to financial misconduct. In total, these departments charged 434 officials with financial misconduct for the period ending 31 March
2002.
Of the 434 officials charged with financial misconduct, criminal proceedings were instituted against officials in 91 cases. Only in 5 of the 91 cases, the officials were found not guilty.
Protected Disclosures Act commenced on 16 February 2001.
Guidelines for practical implementation are in the process of finalization.
During 2002, a round of promotional and consultative workshops were held in the provinces. Key findings include:
Promotion of Access to Information Act, 2000 has been assented to.
This Act is vital in terms of its intentions, because it allows for:
- Became effective on 30th November 2000
- Gives effect to administrative action that is lawful, reasonable and procedurally fair.
- Gives the right to written reasons for administrative action.
2. ESTABLISHMENT OF SPECIAL COURTS TO ADJUDICATE ON CORRUPTION CASES.
- A specialized commercial crimes court and prosecuting unit was established as a pilot in Pretoria in 2000, and a second pilot site was established in Johannesburg in 2002.
3. TO ESTABLISH SECTORAL CO-ORDINATING STRUCTURES TO EFFECTIVELY LEAD AND MANAGE THE NATIONAL ANTI- CORRUPTION PROGRAMME IN THEIR SECTORS AND TO FEED INTO THE DEVELOPMENT OF A NATIONAL CO-ORDINATING STRUCTURE.
Government conducted a thorough "Review of South Africa’s National Anti-Corruption Agencies" in 2001. Amongst the key findings was the fact that very little or no co-ordination and co-operation exists among them. This has now been addressed by the establishment of an inter- departmental Anti-Corruption Co-ordinating Committee (ACCC).
National Anti-Corruption Forum was launched in June 2001 and a Memorandum of Understanding was signed during the launch. The NACF had one executive meeting thereafter, and then when into a period of relative inactivity. This was due to the difficult task of reconciling diaries of an executive of 10 members and other logistical problems.
The good news is that the NACF has now been revitalized and is experiencing a level of enthusiasm last observed at the launch in 2001.
The challenges for the NACF include:
2. PREVENTING CORRUPTION
A central database of corrupt businesses has been established and departments cannot utilize businesses that appear on the blacklist.
The blacklist is accessible on the National Treasury’s Website.
Government has in principle approved that corrupt employees be blacklisted from employment in the public service, and this system will be implemented once the legal issues have been resolved.
8 National Departments have established Hotlines
No Hotlines in Eastern Cape, North West and Free State.
Trade and Industry has established International Best Practice on Hotlines
In Gauteng the reported cases are captured and compiled on a monthly basis. 54 % of the Hotlines reported cases were solved in 2000.
In Mpumalanga annual calls were 3600 in 2001. Twelve (12) criminal charges were laid against individuals.
In Western Cape there were 83 recorded calls, while 27 disciplinary/criminal charges were laid.
Disciplinary codes revised
Report on the investigation into dismissals as a result of misconduct was completed in 1999.
Examples include persons in Home-Affairs and Correctional Services.
A joint effort with the UN has produced a Corruption Country Assessment.
The report highlights the discrepancy between the perceived high levels of corruption and the experienced low levels of corruption.
New Public Service Regulations and Public Finance Management Act of 1999 contain elements that address these issues. Honesty and integrity is a defined competency identified for the Senior Management Service (SMS)for the public sector. Ethics and fair dealing is one of five pillars in newly established Procurement Guidelines.
The Financial Disclosure Framework makes it compulsory for senior managers to disclose financial interests as well as gifts received above R350 in order to avoid conflicts of interest. Satisfactory co-operation was received from departments. However, as at 31 January 27% of managers had not submitted their financial disclosure forms. All Executing Authorities have been informed to charge those SMS members with misconduct for failing to comply with Public Service Regulations Chapter 3, in terms of the Disciplinary Code and Procedures, as contained in the SMS handbook. Managers of the SMS through this exercise are expected to include observance of ethical conduct as part of public management.
3. BUILDING INTEGRITY AND RAISING AWARENESS
A platform has been established to offer a corruption-prevention short course of a yearly basis. Two such courses have already been conducted at the University of Pretoria in 2001 and 2002.
Public Service Code of Conduct, new Disciplinary Code and practical guidelines on the Code of Conducts are in place.
A project is underway to translate the guidelines into all official languages.
No particular strategy in place as yet.
Workshops on the code of conduct and risk management have been conducted in all nine provinces. Professional ethics has been incorporated in public service training offered by SAMDI.
No visible government media campaign. Some media houses are very visible in reporting on corruption. GCIS prepared Draft Communication Plan for National Integrity Strategy and the introduction of the National Anti-Corruption Forum. A limited media campaign was launched in December 2002. More funds are needed to activate and sustain such a campaign.
4. WAY FORWARD
The challenges ahead include: