ANTI - FRAUD AND CORRUPTION AWARENESS SECURITY & INVESTIGATION SERVICES:

LEGAL FRAME WORK The Constitution of the RSA act 108 of 1996 Public Finance Management Act, 1999 To prevent material loss through criminal conduct, un-authorized, irregular, fruitless and wasteful expenditure. Treasury Regulations on PFMA provides that in relation to such allegations the following should take place:

LEGAL FRAME WORK Disciplinary hearing and that the outcome be reported to the Executive Authority, Department of Public Service and Administration as well as Public Service Commission Public service act 103 of 1994 – promote co- ordination, better utilization of scarce human resources for cost effective service delivery

LEGAL FRAME WORK  Prevention and Combating of Corrupt Activities Act, 12 of 2004 Obliges organisations to report all corruption including incidents of fraud, theft,extortion and forgery.  Criminal Procedure Act 51 of 1977 Deals with search, arrest, seizure, entering of premises, forfeiture, disposal of property connected with crime, appearance of the accused, use of force to affect arrest.

LEGAL FRAME WORK Public service Act,1994 chapt.7 Obligations, rights and privileges of officers and employees sec. 30(a)(b)(c) and 31(1)(a)(i) The Municipal Finance Management Act (MFMA), To secure sound and sustainable management of the financial affairs of municipalitiesand other institutions in the local sphere of government

OVERVIEW FRAUD AND CORRUPTION DIFFERENCE BETWEEN THE TWO CONCEPTS CONFLICT OF INTEREST RECOGNISING CORRUPT ACTIVITIES IMPACT OR COST OF CORRUPTION PREVENTION OF FRAUD & CORRUPTION GOVERNMENT STANCE

HOW DOES FRAUD DIFFER WITH CORRUPTION CORRUPTION FRAUD ABUSE OF POWER FOR ILLEGAL GAIN OR PROFIT UNLAWFUL AND INTENTIONAL MAKING OF A MISPRESENTATION WITH INTENT TO DECEIVE AND DEFRAUD FRAUDSTER/CRIMINAL CAUSING ACTUAL OR POTENTIAL PREJUDICE / INJUSTICE TO ANOTHER VICTIM CORRUPTOR FOR THE COMMISSION OR OMISSION OF AN ACT IN RELATION TO THE EXERCISE OF POWERS OR PERFOMANCE OF DUTIES CORRUPTEE ACCEPTS GIFTS/ BRIBES ANY FORM OF GRATITUDE

PROCESS OF CORRUPTION CORRUPTOR CORRUPTEE UNLAWFUL- A PERSON -GIVE / OFFER - TO WHOM POWER HAS BEEN CONFERRED -TO OFFICIAL- UNLAWFULLY -TO WHOM POWER- RECEIVE / OBTAIN HAS BEEN CONFERRED- A BENEFIT ILLEGALY -TO COMMIT & EXCESS- TO COMMIT AN ACT IN FAVOUR OF CORRUPTOR -TO OMIT (NEGLECT DUTY)

Conflict of Interest A conflict of interest (COI) occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other. individualorganization

PROCESS OF FRAUD EXAMPLES OF PROCUREMENT FRAUD SCHEME -EMPLOYEES SIGNING OFF INFLATTED / FICTITIOUS /DUPLICATE INVOICES -RECEIVING KICKBACKS / COMMISSIONS / BRIBES -CREATION OF FALSE AND OR DUMMY COMPANIES -AUTHORISING PAYMENTS ON SAID COMPANIES -RECEIVING GOODS AND OR SERVICES FOR PERSONAL USE IN RETURN FOR LEGITIMATE BUSINESS.

RECOGNISING CORRUPT ACTIVITIES BRIBERY FRAUD EMBEZELLEMENT ABUSE OF POWER FAVOURITISM NEPOTISM CONFLICT OF INTEREST BREACH OF TRUST

Common Types of Fraud / Corruption Misuse of vehicle Payroll Fraud: Ghost workers Fraudulent claims: km travelled / SNT/overtime Irregular appointments Procurement

RECOGNISING CORRUPT ACTIVITIES cont. DESTROYING OF RECORDS/INFORMATION MISUSE OR SELLING INFORMATION TO EXTERNAL AGENTS INDUCEMENT TO AWARD A TENDER FAILURE TO REPORT CORRUPTION BY A PERSON WHO HOLDS AUTHORITY DIVULGING CLASSIFIED INFORMATION

IMPACT OF FRAUD AND CORRUPTION POOR SERVICE DELIVERY UNEMPLOYMENT LOW ECONOMIC DEVELOPMENT LOW INVESTOR CONFIDENCE POLITICAL INSTABILITY

PROACTIVE (INITIATIVE) POLICY DOCUMENT ON SPESIFIC TASK/ SERVICE CODE OF CONDUCT REPORTING FACILITY: NACH EFFECTIVE INTERNAL CONTROLS EFFECTIVE INTERNAL AUDIT PREVENTION OF CORRUPT ACTIVITIES ACT 12 OF 2004 PFMA AND TREASURY REGULATIONS

REACTIVE MEASURES INVESTIGATIVE AND LEGAL TEAM CRIMINAL AND DISCIPLINARY PROSECUTIONS CIVIL PROSECUTION FOR LOSSES INCURRED BY DEPARTMENT

Reporting fraud / corruption Any corrupt activity should to be reported to NACH ( National Anti – Corruption Hotline) National Toll free Personal visit to Investigation offices or call Director /6263 CFO /8

THANK YOU QUESTIONS?