INPUT TO THE AD HOC JOINT COMMITTEE ON ECONOMIC GOVERNANCE AND MANAGEMENT ON FIGHTING CORRUPTION

1. INPUT TO THE AD HOC JOINT COMMITTEE ON ECONOMIC GOVERNANCE AND MANAGEMENT ON FIGHTING CORRUPTION PUBLIC SERVICE COMMISSION

2. Introduction • Government has put in place a comprehensive public service anti-corruption strategy in the fight against corruption. • The Public Service Commission (PSC) plays a leading role in the fight against corruption in the public service. • This presentation will provide an overview of Government’s strategy against corruption whilst specifically highlighting the PSC’s involvement in preventing and combating corruption.

3. Public service anti-corruption strategy • The Public Service Anti-corruption Strategy contains nine considerations which are inter-related and mutually supportive. These are: • Consolidation of the legislative framework - In 2004, Parliament passed the Prevention and Combating of Corrupt Activities Act • The efficacy of existing departments and agencies must be improved through the establishment of appropriate mechanisms to co-ordinate and integrate anti-corruption work. • Improved access to report wrongdoing and protection of whistle blowers and witnesses. • Prohibition of corrupt individuals and businesses. • Improved management policies and practices: this requires specific improvements to procurement systems, employment arrangements, the management of discipline, risk management, information management and financial management.

4. Public service anti-corruption strategy - continued • Management of professional ethics: this requires a renewed emphasis including the establishment of a generic ethics statement for the Public Service that is supported by extensive and practical explanatory manuals, training and education. • Partnerships with stakeholders – hence the National Anti-Corruption Forum involving the private sector and civil society. • All sectors must be encouraged to undertake ongoing analyses of the trends, causes and impact of corruption and to advocate preventive measures. • Awareness, training and education to support the above developments and launch of a public communication campaign.

5. Legislative framework • The Protected Disclosures Act (PDA) number 26 of 2000. • The PDA protect whistleblowers in both the public and private sectors from suffering victimization in the workplace for doing the whistle on suspected maladministration, fraud and corruption. • The Promotion of Administrative Justice Act, number 3 of 2000. • This act holds all organs of state accountable for any decision taken on behalf of its citizens. Any negative administrative decision on behalf of a citizen must be accounted for in writing. Such decisions can also be appealed. • The Promotion of Access to Information Act, number 2 of 2000. • This Act promotes transparency both within the public and private sectors. • The Financial Intelligence Centre Act, Act number 38 of 2001 (FICA) • This act combats money laundering, especially in the form of large sums of cash. It compels all financial institutions to report, without delay, such large sums of cash in transactions in order to prevent money laundering.

6. PSC’s role in preventing and combating corruption • Financial Disclosure Framework • All senior managers in the public service have to disclose their financial interests to the PSC on an annual basis. Such disclosures promote both transparency and accountability in order to both detect and prevent real conflicts of interest, especially in the area of supply chain management. A compliance rate of 80%has been achieved. • National Anti-Corruption Hotline (NACH) • The Hotline is managed by the PSC. Since the launch of the NACH over 1108 cases of corruption and maladministration have been referred or are in the process of being referred to departments for further handling and investigation.

7. PSC’s role in preventing and combating corruption - continued • Ethics Management in the Public Service • The Code of Conduct for public servants was issued in 1997. Since then, extensive training and promotion of the Code has been done by the PSC. As part of the popularization of the Code, an Explanatory Manual was issued in 2003 and it was also translated into all official languages. • Hosting of National Anti-Corruption Summits and secretarial support to the National Anti-Corruption Forum • The PSC was a key role player in arranging the first and second National Anti-Corruption Summits. The second summit was held during March 2005. The Summit was attended by 400 delegates from the public and private sectors as well as civil society.

8. PSC’s role in preventing and combating corruption - continued • The Second Anti-Corruption Summit adopted the following action oriented resolutions: • A. Ethics, Awareness and Prevention • To promote leadership in all sectors of society that is committed to the creation of a culture of integrity and to restore confidence in the fight against corruption. • To foster a greater culture of transparency and accountability in all sectors. • To encourage whistle blowing and reporting in all sectors, and strengthen measures to protect all persons from victimisation where they expose corrupt and unethical practises. • Ethics training must form a critical part of the ethics and awareness programme of all sectors, including incorporation in the school curricula. • Values and principles of Codes of conduct of the various sectors must be established, promoted and enforced through a defined programme. • To conduct a joint research programme to audit the state of professional ethics in each sector.

9. PSC’s role in preventing and combating corruption - continued • B. Combating • To promote, support and strengthen co-operation and co-ordination between and within the different sectors. • To ensure better co-ordination among the different agencies responsible for combating corruption. • To acknowledge the role-played by government in the establishment of a database for blacklisting, and to further support this initiative by the creation of a common database for blacklisting across all sectors. A mechanism for information sharing across all sectors should be developed. • To strengthen capacity for the implementation of anti-corruption legislation, at institutions of service delivery especially at Provincial and Local government. • Where corruption is endemic, initiatives such as the Joint Anti-corruption Task Team should be instituted to combat corruption, particularly at Provincial and Local government. • The shortcomings of the Protected Disclosure Act should be addressed and resolved by the Law Commission and a report to be provided to the Parliamentary Committees on Justice by the end of 2005. • To encourage regulation of post public sector employment to ensure a “cooling off” period to avoid conflict of interest. • To strengthen the capacity of the law enforcement agencies to identify and recover assets obtained through illicit or corrupt means in line with Chapter 5 of the UN Convention Against Corruption.

10. PSC’s role in preventing and combating corruption - continued • C. Oversight, Transparency and Accountability • All oversight structures at Provincial and National levels should be strengthened. • Establish a joint research initiative to evaluate the implementation by the Executive of resolutions made by Parliament and its committees pertaining to corruption. • To review the Financial Disclosure Framework of public representatives, and senior public managers and where necessary to ensure better management through greater compliance, timeous submission, improved procedures and the enforcement of penalties/sanctions in the absence of compliance. • The Financial Disclosure framework should be extended to include senior management in Local Government, parastatals and other public officials with designated responsibilities in procurement. • Encourage Business and Civil Society to apply financial disclosure provisions to senior people at director level in their sectors.

11. PSC’s role in preventing and combating corruption - continued • Secretarial support to the National Anti-Corruption Forum (NACF) • The Summit recommitted its support to the NACF as an appropriate multi-sectoral structure to drive a joint national anti-corruption strategy. • The PSC continues to provide secretarial support to the NACF. • Emanating from the Summit, a National Programme against corruption was launched by the NACF. Some of the joint projects of the National Anti-Corruption Programme which the PSC will be directly involved in are: • To produce a user-friendly guide to the Prevention and Combating of Corrupt Activities Act, • To conduct a joint research programme to audit the state of professional ethics in each sector and • To host an information-sharing session on Blacklisting.

12. PSC’s role in preventing and combating corruption - continued • The majority of the interventions of the PSC focuses on the prevention of corruption. However, it also has a direct involvement in the combating of corruption. • The PSC has a responsibility in terms of its mandate to investigate public administration and personnel practices. • A number of audits and forensic investigations into public administration practices have already been conducted by the PSC. • Most of the investigations are related to mal-administration, corruption and other irregularities in respect of human resource and procurement practices. • The investigations emanate from complaints lodged with the Commission, and requests from, among others, Executing Authorities, public servants and whistle-blowers. • These investigations culminate in reports containing findings and recommendations in an attempt to remedy, rectify and/or improve practices investigated.

13. Other anti-corruption measures • The Anti-Corruption Co-ordination Committee (ACCC) • The Public Sector Anti-Corruption Strategy is coordinated by a multi-departmental Anti-Corruption Co-ordination Committee (ACCC), which is convened by the Department of Public Service and Administration (DPSA). The ACCC submits regular progress reports to the Governance and Administration cluster of Cabinet. • The Directorate of Special Operations (DSO) • The Directorate’s role is to investigate and prosecute individuals who organize crime and profit from it. The DSO intervenes in criminal activities that have the greatest economic, social or security impact on the citizens and the state of South Africa. • The Asset Forfeiture Unit • The Asset Forfeiture Unit (AFU) was established to use civil forfeiture to recover assets suspected of having been used or obtained in the commission of a crime. • Supply Chain Management • A new supply chain management system has been developed by the National Treasury for implementation in all departments. As part of the system a comprehensive code of conduct for supply chain officials has been developed.

14. CONCLUSION • The commitment of government in its fight against corruption in the public service is clearly visible through the number of interventions that it has put in place. • The PSC through its mandate will continue its activities to prevent and combat corruption in the public service. • Of importance is to continue to build on relationships with all sectors of society through forums such as the NACF in galvanizing the fight against corruption.