PRESENTATION TO THE 2ND SESSION OF THE ANTICORRUPTION LEARNING NETWORK

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

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

• The PSC has been at the forefront of
  anti-corruption initiatives in the Public Service
  since its inception.
• The PSC has to coordinate the implementation of
  the National Anti-Corruption Forum (NACF), a
  cross-sectoral forum in the fight against
  corruption.
• The NACF is the national blueprint outlining the
  role of all sectors and was developed on
  realization that the war against corruption can
  only be through a multi-pronged, collaborative
  and all-inclusive approach.
• The PSC has promoted professional ethics and has
  also been directly involved in the management of
  initiatives to prevent corruption in the Public
  Service.
• Such initiatives include the Financial Disclosure
  Framework for senior managers through which
  potential conflicts of interest are managed
• the implementation of the National
  Anti-Corruption Hotline [phone]).

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Introduction (Cont-)

• Cabinet approved a single National
  Anti-Corruption Hotline (NACH) on 14 August 2003
  (Cabinet Decision dated 17 September 2003).
• In terms of the Cabinets direction, the NACH was
  assigned to the PSC and cases are referred to
  Departments for investigation.
• The PSC is required to investigate certain
  categories of cases such as face to face
  interviews, high profile cases involving heads of
  Departments, etc.
• The purpose of the NACH is to establish a
  centralized hotline system that will serve the
  public service as a whole as opposed to a
  decentralized system.
• The NACH caters for Government Departments,
  agencies and public bodies

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Introduction (Cont-)

• Hotlines in Departments were phased out due to
  inconsistencies, ineffective and duplication of
  human and financial resources.
• These hotlines were operated at a cost of over
  R60 million per annum to Government.
• The management of a single anti-corruption
  hotline for the Public Service is currently
  operated at a cost of approximately R3 million
  per annum.
• The NACH is accessible to the public regardless
  of where they may be in the country.
• The service is available 24 hours per day and all
  official languages are catered for.

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OBJECTIVES

• The objectives of the NACH are to
• deter potential corruption by making all
  employees and other stakeholders aware that the
  Public Service is not a soft target
• detect incidents of corruption through
  encouraging whistle blowers to report incidents
  which they witness occurring in the Public
  Service
• ensure the successful investigation of alleged
  corruption and to provide feedback to
  whistle-blowers
• assist the Public Service in identifying areas of
  corruption risk in order that preventative and
  detective control measures can be appropriately
  improved or developed
• raise awareness that Government takes corruption
  seriously and
• enable callers to report corruption anonymously
  thus encouraging whistle- blowing.

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Cases of corruption reported to the NACH

• Since the inception of the NACH, 01 September
  2004 to 30 June 2009, a total of 6305 cases were
  referred to Departments.

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Cases referred to Departments as at 31 March 2008
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Cont-

• The number of cases received since September 2004
  to March 2008 has increased from 13.5 to 36.
• The reasons for such increase could be the
  following
• Advertisement of the NACH in the Media
• Increased willingness of citizens to report
  alleged corruption
• Events of corruption reported in the media that
  draws attention to corruption
• An increase in the actual extent of corruption

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Types of allegations received
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Types of allegations reported to the NACH as at
31 March 2008
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INVESTIGATION OF CASES BY DEPARTMENTS

• Departments investigate referred allegations of
  corruption with a view to report back to the PSC.
• Where necessary cases may be referred to an
  appropriate agency for investigation.
• All investigations must be executed as speedily
  as possible(40 days feedback to the PSC).
• Full investigation reports MUST be submitted to
  the PSC in order to evaluate the cases and
  capturing them on the CMS.
• Status report MUST be submitted on a regular
  basis

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Feedback on cases received by the PSC as at 31
March 2008
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Provision of feedback to the PSC

• The NACH only received feedback on 31 of all
  cases referred to departments.
• Feedback declined in 2007-2008.
• There is poor coordination of cases with regard
  to the referral of cases from the Offices of the
  respective Directors-General to the relevant
  provincial departments.
• The causes delay in providing feedback to the
  PSC.
• The slow feedback by departments is impacting
  negatively on the credibility of the NACH.

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Closing of cases on the CMS of the PSC as at 31
March 2008
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Report on Measuring the effectiveness of the NACH
2008

• FINDINGS
• There are a slow rate feedback due to a lack of
  capacity and accountability by senior managers to
  deal effectively with NACH cases.
• Only three hundred and thirty five cases were
  closed on CMS.
• Adequate financial and human resources are not
  allocated to combat and prevent corruption by
  departments and their political principals.
• Problems experienced by departments in the
  handling of NACH cases appears to be linked to
  the lack of investigative capacity and
• the fact that departments do not have appropriate
  structures or specialized units to deal with
  cases of alleged corruption as required by the
  Minimum Anti-Corruption Capabilities set by
  Cabinet
• there seems to be lack of will/reluctance to
  investigative cases by departments and lack of
  investigative capacity therefore is used as an
  excuse

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Findings (Cont-)

• Outcome of investigations
• The successful investigation of cases resulted in
  the recovery of R86 million from perpetrators
• As a result of the successful investigation of
  cases, 81 officials were found guilty of
  misconduct
• Of these cases 15 officials were suspended
• 25 officials were given final written warnings
  and
• 29 officials were dismissed.

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Recommendations

• Provinces must review their referral protocols.
• Minister for the Public Service and
  Administration should issue regulations on the
  Management of the Hotline.
• Departments should create Forensic Investigative
  Capacity
• Provinces must establish Integrity Management
  Units to deal with investigations.
• Departments should commit themselves in dealing
  with abuse of GG vehicles, abuse of school and
  social grant fraud
• An SMS facility should be considered to increases
  access to the NACH.
• PSC must install the Web Enabled System
• Departments must conduct risk assessments on
  corruption

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Web Enabled System (WES)

• The Web Enabled System for case referrals to
  departments has been installed at the PSC in July
  and will be operational in August.
• The PSC will commence the process with a pilot
  phase that will include Correctional Services,
  Gauteng and Mpumalanga Provincial
  Administrations.
• The advantages of the WES
• Paperless environment-the system moves away from
  the paper-based management of tip-offs reports
• Easy monitoring and assignment of tip-off
  reports- the system can able to monitor the
  status of any action plans that have been
  assigned to the investigators to any specific
  tip-off report.
• E-mail reminders- are sent to users to remind
  them of how many days are remaining to attend to
  action plans.
• Flexible reporting-The system is able to generate
  Excel reports based on the criteria of the user.

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CONCLUSION

• This presentation provided a picture of the
  as-is situation with the management of the
  Hotline.
• Clear challenges have emerged.
• The departments investigation capacity and means
  to improve the rate of feedback needs to be
  considered.
• Training for forensic investigators and data
  analysts needs to be considered.
• Have specialized courts to deal with corruption
  cases in each province.

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THANK YOU!