Anti-Corruption Programme Presentation to Portfolio Committee

1. PRESENTATION TO PORTFOLIO COMMITTEE: ANTI-CORRUPTION PROGRAMME 19 MAY 2010 11

2. Outline of the presentation • Background • Measures in place to fight Corruption • Structures in place to fight Corruption • Capacity to fight Corruption • Compliance with international anti-corruption legal instruments • Benefits and value-add of being Party to international and regional legal instruments • Conclusion 22

3. 1. Background • The dpsa is responsible for driving the government’s anti-corruption framework since 2001. • The dpsa is also responsible for implementing Outcome 12: “An Effective, Efficient and Development Oriented Public Service”. • One of the four outputs for this outcome is Output 4: ‘Tackling Corruption Effectively” • In implementing this output going forward for 2010-2014, the implementation of the following activities will be the key deliverables of the draft PS Anti-corruption Framework 33

4. 2. Measures to Fight Corruption • Public Service Anti-Corruption Strategy,2002 • Draft Public Sector Anti-Corruption Framework • Public Service Charter 44

5. Public Service Anti-CorruptionStrategy • The Anti-Corruption Coordinating Committee (ACCC) is responsible for the implementation of the Public Service Anti-Corruption Strategy. • The Strategy has been in place since 2002 and a comprehensive audit was undertaken in 2005/2006. • An overall implementation of 96% was achieved with implementation gaps identified in the following areas: • Post-public service employment • Participation of private citizens in disciplinary proceedings • Inclusion of ethics audit in the Annual Reports • Mobilisation of public service unions in the fight against corruption 55

6. Public Sector Integrity Management Framework (Draft) • The Framework is aimed at strengthening and regulating good governance and probity in the public sector. • This will be achieved through the following: • Simplification of the implementation of existing ethical codes and anti-corruption measures in order to improve compliance; • Promotion of integrity and good governance and striving to build more accountable and efficient public service and; • Put measures in place to ensure that appropriate action is taken in the event of non-compliance i.e. disciplinary action, recovery of losses, prosecution, and sanctions. • The Framework is undergoing consultation processes. • Presented to the following structures to date: • G&A Cluster System • Anti-Corruption Coordinating Committee 66

7. Public Sector Integrity Management Framework (Draft) • Measures addressed in the Framework include the following: • Financial disclosure by all public servants; • Prohibiting public servants from conducting business with government; • Public servants to recuse themselves, (and disclose in writing to the Ethics Officer) from any processes in which their families or business partners stand to benefit from a contract conducted with their department; • Prohibiting public servants from accepting gifts of any value from private entities; • Prior approval before undertaking remunerative work outside the public service (selected categories of employees); • Appointment of Ethics Officers to administer the implementation of the Framework 77

8. Public Service Charter (Draft) • The Charter is aimed at public servants to re-commit themselves to the principles of the Code of Conduct and the Batho Pele Principles • Provides a statement of commitment to the people of South Africa for the way in which public servants will carry out their daily duties and contribute towards securing a fairer, sustainable and better future for all South Africans. • The following components are addressed in the Charter: • 5 ethical principles of a public cadre, 8 attributes of a public servant, • 9 commitments of a public servant to the people of South Africa; • 7 rules of engagement for a public servant and 12 commitments of a public servant to the public service. • The Charter is still undergoing consultation. 88

9. 3. Structures to Fight Corruption • Inter-ministerial Committee on Anti-Corruption • Anti-Corruption Co-ordinating Committee • National Anti-Corruption Forum • G&A Working Group on Anti-Corruption 99

10. Anti-Corruption Coordinating Committee • The Anti-Corruption Coordinating Committee was established by Cabinet in 2003 to coordinate anti-corruption activities in the public service. • The ACCC is comprised of senior representatives of key departments and agencies that have a transversal anti-corruption work. These departments and agencies include:Public Service and Administration – Convener, Defence; Financial Intelligence Centre; International Relations and Cooperation, Government Communication and Information Service; Home Affairs; Justice and Constitutional Development; National Intelligence Agency; National Prosecuting Authority; National Treasury; Office of the Public Service Commission; Cooperative Governance and Traditional Affairs ; Public Enterprises; South Africa Local Government Association; Police; South African Revenue Services Special Investigating Unit; Trade and Industry; and a Provincial representative from each Province nominated by the respective Premiers Offices. 1010

11. Anti-Corruption Coordinating Committee • The mandate of the ACCC is to: • Ensure that the fight against corruption is fully coordinated and integrated, with synergies between the elements of prevention, detection, investigation, prosecution and monitoring, as well as synergies between the different spheres of government; • Advise the government on regional and international cooperation, including coordination of representation in the international and inter-governmental forums; • Establish a system for information collection, coordination, dissemination and management; and formulate proposals on a national anti-corruption strategy. • A Workshop to review the functioning of the ACCC will be held in May 2010. The aim of the workshop is to review the mandate and functions of the ACCC to ensure that the ACCC responds to new challenges and aligns its work to that of the Inter-Ministerial Committee on Corruption. The workshop will emerge with a program of action for the ACCC. 1111

12. National Anti-Corruption Forum • The National Anti-Corruption Forum was established in June 2001 and consists of representatives from the public and private sectors and civil society organizations. • The 3rd National Anti-Corruption Summit was held in August 2008. • One of the resolutions of the Summit related to the review of the functioning of the National Anti-Corruption Forum. • A Workshop was held in April 2010 to review the functioning of the NACF. • A inter-sectoral Task Team was established to take forward the outcomes of the Workshop relating to the structure of the NACF and the location of the Secretariat. • The Report of the Task Team is expected by the end of May 2010. 1212

13. 4. Capacity Development to Fight Corruption • Anti-Corruption Unit • Training Programmes 1313

14. Anti- Corruption Unit • The DPSA will be launching the Special Anti-corruption Unit to speed up investigation and conclusion of anti-corruption cases in collaboration with anti-corruption agencies such as the Special Investigating Unit. • A Corruption Management Information System (CMIS) is also being developed to collect data on all cases of corruption. This system will also allow for e-filing of financial disclosure forms and will be linked with other relevant systems and databases to verify and monitor potential and real cases of conflict of interest and corruption. 1414

15. Training Programmes • In 2002 Cabinet approved the establishment of the Minimum Anti-corruption Capacity Requirements in departments to fight corruption.  The DPSA is currently completing an audit of the Minimum Anti-corruption Capacity Requirements to assess the capacity in departments to detect, prevent, investigate and resolve corruption cases and design the necessary training specifications. • Furthermore, between May and November 2010, the DPSA in collaboration with PALAMA will be implementing the Public Sector Anti-corruption Capacity Building Programme aimed at strengthening the capacity of employees including anti-corruption practitioners and law enforcement officials to fight, prevent, resolve and investigate corruption. 1515

16. 5. International Anti- Corruption Instruments • OECD Convention • UN Convention • APRM 1616

17. International anti-corruption legal instruments • On 19 June 2007, South Africa became the 37th country to accede to the OECD Convention and to join the OECD Working Group on Bribery in International Business Transactions (WGB). • The WGB is tasked with monitoring and evaluating countries’ efforts to implement the Convention through a peer review mechanism that is applied consistently and equally amongst all members. • The review process involves two phases: Phase 1 involves reviewing Parties’ compliance to the OECD Convention and Phase 2 focuses on the implementation and application of the Convention at the national level. • The Phase 1 evaluation was undertaken in 2008 and the Phase 2 evaluation is currently underway. • The OECD Convention is relatively narrow and specific in its scope. It focuses solely in the use of domestic law to criminalise bribery of foreign public officials. • Applies to both active and passive bribery but does not apply to: • forms of corruption other than bribery, • bribery that is purely domestic, or • to bribery in which the direct or indirect recipient of the benefit is not a public official.

18. Compliance: OECD Anti-Bribery Convention • South Africa is compliant with the OECD Anti-Bribery Convention. • The following issues were highlighted for further engagement as part of the Phase 2 evaluation: • The requirement of intent to commit foreign bribery; • The prosecution of legal persons and whether penalties for companies are effective and dissuasive; • Prosecution of persons who committed foreign bribery partly in South Africa; and • The effectiveness of the proposed Directorate of Priority Crime Investigation. 1818

19. Implementation: OECD Anti-Bribery Convention • Measures have been put in place to ensure the effective implementation and application of the Convention. • The OECD Task Team was established in 2007 to ensure the effective implementation of the Convention. • DPSA, NPA, SAPS, FIC, National Treasury, DIRCO, SARS, DTI, DOJCD • The NPA and SAPS are responsible for the proactive and effective investigation and prosecution of alleged cases of foreign bribery. • The DPSA is responsible for coordination of the preventative measures within the private and public sectors. • SARS is responsible for ensuring the non-tax deductibility of bribes. • FIC is responsible for the money laundering aspect of the Convention. • National Treasury, IRBA, Auditor-General and DTI are responsible for the accounting and auditing requirements of the Convention • DIRCO is responsible for the international cooperation and assistance provided to companies. • DOJCD is responsible for the provision of Mutual Legal Assistance and extradition assistance. 1919

20. Benefits of Accession: OECD Anti-Bribery Convention • Peer review and benchmarking against international good practice • Made up of 30 OECD members and 7 non-OECD members • Strengthening of policy, legislative and institutional capacity • Monitoring processes focuses on the legislative compliance and assesses structures, mechanisms and measures in place to combat foreign bribery • New techniques for the investigation and prosecution of cases • Leveling of the playing field • Tour-de Table discussions provides a platform for holding developed countries accountable for corruption in the developing world. • Provision of information in terms of efforts taken in terms of investigation and prosecution of cases. • Supply-side of bribery • Focus on the role of multi-national companies in provision of bribes • Proactive investigation of bribery cases 2020

21. UN Convention • South Africa ratified the United Nations Convention against Corruption in November 2004. • UNCAC is the first internationally legally binding instruments against corruption. • The Implementation Review Group was established in 2009 to assist with the review of the Convention. • The first meeting of the IRG will take place in July 2010. 2121

22. APRM • South Africa was one of the first countries that acceded to the APRM in March 2003, in Nigeria • MPSA was appointed to map out a strategy for the country. • National Governing Council (NGC) was formed from cross-sections of society • The cross-cutting themes tracks issues of corruption and how we are putting mechanisms in place to curb corruption within SA • We are measured by the Bribe Payers Index of Transparency International as to the degree of perception of corruption 2222

23. CONCLUSION • Over and above the implementation of above activities, the DPSA through a Delivery Agreement with COGTA, PALAMA and the Public Service Commission will jointly implement additional activities supporting output 4 of outcome 12 • The activities will include conducting public perception surveys and the implementation of a national, standardized ethics campaign for the public sector.

24. THANK YOU 2424