LEGAL%20STATUS

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LEGAL STATUS

• The SIU is a Schedule 3 Public Entity
• Reports to Parliament and the President

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VISION MISSION

• To be a world-class anti-corruption agency
• An anti-corruption agency that performs high
  quality investigations of corruption and takes
  legal action to prevent and recover losses of
  state assets in the public interest

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Advantages of SIU

• Unique role in that only institution that uses
  the civil law to recover money
• Can do whole process from investigation to
  final litigation
• Added advantage that need not prove case beyond a
  reasonable doubt, but only on a balance of
  probabilities
• Also, unlike criminal fraud where state has to
  prove subjective intent
• In civil law a negligent or even innocent
  misrepresentation is sufficient

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Effective and economic investigations

• The SIU provides forensic investigation services
  at no additional cost to government
• Can match almost all private sector services at
  about a third of the cost
• Can also provide a proper completed investigation
  since it has investigative powers, members can
  take proper affidavits
• After private investigations the report usually
  need to be backed by proper evidence leading to
  delays

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(Continued)

• Also assist with the investigation and
  prosecution of the criminal matter alleviating
  the resource constraints in the criminal justice
  system
• The Special Tribunal ensures that litigation
  proceedings are swift as opposed to the lengthy
  delays that may occur in other courts.

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Building Partnerships

• It is vital to work with government to fight
  corruption effectively
• Focus on building good working relationships with
  those state institutions that need ongoing
  investigations
• Sensible to spend some of the funds going to the
  private sector on working with the SIU and
  building its capacity
• i.e. build capacity in the state that will be
  permanently available to fight corruption

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OVERVIEW 2002/2003

• In last years annual report reference was made
  to a 10 point strategy to put the SIU back in
  business as one of the premier corruption
  fighting institutions in our country.
  Significant progress has been made in
  implementing this strategy.

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1. Creating certainty about the future of the SIU

• It is no longer affecting staff morale in the SIU
• Although there is not long term certainty

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2. New cases for SIU

• There is now a steady flow of work to the SIU,
  esp through DCS
• 8 new investigations received during the year
• Still undue delays in receiving proclamations

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3. Increasing Capacity

• Investigative capacity has been substantially
  increased
• Permanent staff 40 increase - 74 to 103
• Total staff 58 increase - 85 to 133
• Filled old vacancies
• But mainly because of additional funding received
  from other state institutions

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• Important way of building capacity has been to
  build to develop an effective training program
• Increase skills of own staff
• But also take responsibility for training own
  recruits rather than poaching

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4. Improving representivity

• Employment equity plan is in place plus
  employment equity forum  
• A major focus in recruitment is to improve
  representivity, especially at a management level
• Challenge in financial investigations, but
  achieved good progress
• 67 of all permanent staff are from designated
  groups - 43 are black
• If contract workers are included, 48 of unit
  members are black

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5. Ensuring competitive salaries

• Salary grading performed by external consultants
  to align SIU salaries with equivalent structures
  in the public sector 
• Likely to be implemented during 2003/2004
• Confident that this will allow us retain our
  present staff by offering them a proper career
  path
• And allow us to continue to recruit skilled new
  staff

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6. Promoting greater efficiency

• A true project management approach adopted
• Successful in introducing clearer time frames and
  greater accountability
• Comparison done with best practice in the market
  with the aim of optimising productivity

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7. Legal changes to improve effectiveness

• Effectiveness of SIU severely affected by a
  number of judgements
• In addition, the present referral and litigation
  processes are ineffective
• Adv Wim Trengove SC briefed for advice on
  possible amendments, as well as on related
  constitutional issues
• Legislative amendments to be tabled in Parliament

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8. Establishing a national presence

• Previously SIU based in East London with teams
  focussed on each province and a satellite office
  in Umtata
• Decided that it would be more effective to
  establish a national presence
• Pretoria office now fully established
• Durban office experienced significant growth
• Satellite offices in Mpumalanga and Cape Town to
  be established during 2003/2004

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9. Improved cooperation with law enforcement

• A special effort has been made to improve
  cooperation with other law enforcement agencies
  to ensure effective criminal action where
  evidence is available indicating a criminal
  offence
• With resource constraints in the criminal justice
  system, not sufficient simply to refer matters to
  the police or NPA since there may not always be
  the capacity to deal with them adequately

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• Made investigators available to assist the police
  in compiling dockets that are court-ready eg
  Nontenja
• Cooperated closely with other law enforcement
  agencies, eg in JACT, DCS investigation, housing
  investigation
• Handed several matters to AFU where their powers
  more effective Magistrates case, Nontenja,
  Maropeng
• NDPP is prepared to give delegations to
  experienced lawyers in the SIU to do the
  prosecution in cases investigated by the SIU

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10. Building partnerships with government

• An effective partnership has been established
  with DCS 25 dedicated SIU members
• Limpopo Dept Transport
• KZN Department of Housing

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Notable cases

• Nontenja Umtata attorney who defrauded state of
  R19m - Accused sentenced to 20 years imprisonment
  and asset forfeiture order granted
• Witness Protection Program (KZN) - all staff
  removed - investigation of widespread corruption
  by officials of the WPP in conjunction with NPS,
  DSO and SAPS secret funds were abused, own
  houses let

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Notable Cases (cont.)

• KZN Tare Weight investigation of fraudulently
  reduced licence weights of vehicles resulting in
  losses of millions a lot of progress made and
  more than R1 million recovered
• Limpopo investigation of all drivers licences
  issued since 1994 in cooperation with provincial
  Dept of Transport
• Found nearly 10 000 licences issued irregularly
  and 1 400 already physically cancelled
• Working with DoT

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DCS investigation

• Full-time project team of 25 members
• R17m from 6 doctors, incl R7.6 m from Dr Bham
• Problems with prison and private pharmacies,
  petrol cards
• Assaults, drugs,
• Booking prisoners out
• Selling of jobs
• Promotions and appointments nepotism
• Agriculture
• False qualifications
• Irregular parole, remission

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Housing investigation

• Housing Massive investigations of all state
  subsidies granted in Gauteng, KZN and N Cape
  valuable lessons learnt
• Included are several conveyances entrusted with
  housing money, incl TR Mfeka, Mlaba Mkaya Inc, T
  Mvelase, HVB Makhanya
• Discussing a permanent national project with
  Minister of Housing

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• Univ Natal Law Clinic to assist small victims
• 42 866 sites inspected
• 27 projects completed

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Agri-Eco investigation

• Final report about to be issued
• Major asset verification done for the State R75
  million of assets secured

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JACT investigation in Eastern Cape

• Joint Anti Corruption Task Team in Eastern Cape
  with SAPS, NPA
• Instrumental in setting up infrastructure
• Seconded members to assist in criminal
  investigations
• Have applied for mandate to investigate in terms
  of Act 74/1996

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Umanyano investigation

• Recovery of assets of the former Transkei Road
  Transportation Corporation liquidated in 1996
• A number of fixed assets already identified and
  being recovered

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ACHIEVEMENTS
Outputs Performance Measures 2002/2003 Target 2002/2003 Actual (Unaudited) 2003/2004 Target
Investigation of corruption and prevention of losses to the State Savings (incl preventions) Cash recoveries R60m R40m R90,5m R37,5m R70m R50m
Totals R100m R128m R120m
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ACHIEVEMENTS
Savings and Preventions 2002/2003 Actual (Unaudited)
Total Notatable cases Agri-Eco asset verification Namaqualand Housing Project R90,5m R75,4m R14,0m
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ACHIEVEMENTS
Cash Recoveries (incl. cash recovered by third parties) 2002/2003 Actual (Unaudited)
Total Notatable cases Department of Correctional Services Ghost Workers pension funds R37,5m R17,0m R14,0m
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ACHIEVEMENTS
Description 2002/2003 Actual number of cases 2003/2004 Target number of cases
Criminal prosecutions initiated Criminal prosecutions concluded Disciplinary proceedings initiated Disciplinary proceedings concluded Other remedial action initiated Other remedial action concluded 13 1 125 unknown 3000 1400 200 300 3000
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ACHIEVEMENTS

• Notable cases
• Department of Correctional Services
• Limpopo Department of Transport
• KZN Housing conveyancers
• Not always possible to quantify impact of SIU

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BUDGET - INCOME
Details 2002/2003 Unaudited 2001/2002 Audited
Income - Government Grants - Department of Correctional Services - Limpopo Department of Transport R25,5m R22,9m R 2,5m R 0,4m R21,9m R21,5m R 0,0m R 0,4m
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BUDGET EXPENDITURE
Details 2002/2003 Unaudited 2001/2002 Audited
Expenditure - Operational salary expenses - Operating expenses - Non-operational salary expenses - Overhead expenses (incl. Depreciation) R30,2m R16,2m R 8,3m R 3,1m R 2,6m R19,6m R 9,6m R 5,1m R 2,8m R 2,1m
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• Excellent administration and financial controls
• PFMA compliant
• Good use of information technology
• Serious about training eg Computer Based
  Training

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• Thank you