1. WHISTLE BLOWING POLICY PRESENTATION TO THE PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS 22 JUNE 2011 1

2. 1.Purpose 2.Background 3.Whistle Blowing Principles 4.Legal Framework 5. Implementation of the policy 6.Monitoring and Reporting 7.Policy Review 8.Conclusion PRESENTATION OUTLINE 2

3. To brief the Portfolio Committee (Committee)on the development and implementation of anti-fraud and corruption systems/ programmes within the Department of Human Settlements (Department ) PURPOSE 3

4. BACKGROUND The Department is responsible for the provision of adequate housing and creation of sustainable human settlements throughout the Republic of South Africa (RSA). This responsibility is often derailed by the high levels of fraud and corruption within the human settlements sector. 4

5. BACKGROUND The fraud and corruption activities affect the following processes:  application and approval of housing subsidies,  the tendering processes and awarding of housing contracts;  the manner in which funds allocated for human settlements development are used;  the approval of payments and payment of service providers by relevant officials;  the construction of housing (including quality of material used and shoddy workmanship); and  the allocation of houses to beneficiaries. 5

6. BACKGROUND The challenges listed above prompted the Department to develop and implement numerous policies and strategic documents to curb the rot that is impacting negatively into government’s ability to provide adequate housing and create sustainable human settlements. One of the polices which was developed by the Department is the Whistle Blowing Policy (Policy), which was initially approved in November 2007. 6

7. WHISTLE BLOWING PRINCIPLES The Department acknowledges that the employees are often the first to realizes that a crime or malpractice could have been committed within its operational environment. However, they may not express their concerns or warn the Department for fear of being regarded as being disloyal to their colleagues or fear of victimisation from management. 7

8. WHISTLE BLOWING PRINCIPLES The Whistle Blowing policy is based on the following principles:  Whistleblower’s right to speak;  Transparent and accountable officials (and workplace)  Ensure and promote disclosure of information;  Participation and protection of the source of information; and  Law enforcement against offenders. 8

9. LEGAL FRAMEWORK This policy is underpinned by the Protected Disclosure Act, Act No. 26 of 2000 (the Act). Section 1 of the Act defines disclosure as – “any disclosure of information regarding any conduct of an employer, or an employee of that employer, made by any employee who has reason to believe that the information concerned shows or tends to show one or more of the following : 9

10. LEGAL FRAMEWORK  That a criminal offence has been committed or is likely to be committed ;  That a person has failed, is failing or is likely to fail to comply with any legal obligation to which that person is subjected to;  That a miscarriage of justice has occurred or is likely to occur;  That the environment has been or is likely to be damaged; 10

11. LEGAL FRAMEWORK  That the health or safety of an individual has been endangered or is likely to endangered;  Unfair discrimination as contemplated in the Promotion of Equality and Prevention of Unfair Discrimination Act, 2000 (Act No.4 of 2000)  That any matter referred to in the above paragraphs has been, is being or is likely to be deliberately concealed; 11

12. IMPLEMENTATION OF THE POLICY 1.How to make the disclosure The disclosure could either be made personally, telephonically or in writing, in the following manner:  Anonymous complaint/ tip-off;  Open identity complaint/ tip-off;  Before the incident takes place; and  After the incident has taken place 12

13. IMPLEMENTATION OF THE POLICY 2. Who can make the disclosure Any employee of the Department who is either permanent, temporal and any of the following levels:  Member of staff;  Supervisor; and  Management. 13

14. IMPLEMENTATION OF THE POLICY 3. Where can the disclosure be made The disclosure can be made through the following:  National Anti-Corruption Hotline: 0800 701 701;  Departmental Anti-Corruption Hotline: 0800 14 6873;  Fax line: (012) 421-1425; and  Visit to our offices at 240 Walker Street, Sunnyside, Pretoria. 14

15. IMPLEMENTATION OF THE POLICY 4. Requirements for making the disclosure An employee who is making the disclosure must ensure that he/ she is:  Acting in good faith;  Has a reasonable belief that the allegations are substantially true;  Complying with appropriate channels and procedures outlined by the policy; and  Not making malicious reporting/ false accusations. 15

16. IMPLEMENTATION OF THE POLICY 5. Implementation Plan The plan seeks to support the Department’s commitment in fighting fraud and corruption and contribute towards the delivery of adequate housing and creation of sustainable human settlements. This is done by the Department and its stakeholders through:  Identifying and addressing areas of potential risk;  Detecting the existence of fraudulent activities;  Increasing levels of awareness about fraud; and  Establishing effective anti-fraud practices. 16

17. MONITORING & REPORTING The Department established an internal investigation directorate which is, amongst others, tasked with the development and implementation of policies, strategies and other systems that are aimed at preventing, detecting and reducing fraudulent and corrupt activities within the human settlements sector. 17

18. MONITORING & REPORTING This directorate is in the process of developing monitoring tools for the Department’s fraud prevention strategy and this policy. These tools will help to:  Monitor the implementation of the policy;  Monitor compliance with the prescripts of the policy;  Identify further gaps in the system (if any?);  Recommend appropriate interventions; and  Report on the impact of the policy. 18

19. POLICY REVIEW The Department recognises that the industry is dynamic and there is always a likelihood of new trends of fraud and corruption developing throughout RSA. This makes it necessary to review and update the policy on an annual basis to ensure that the Department is able to timeously respond to challenges posed by housing fraud and corruption as well as any emerging trends. The policy was reviewed and approved by the Director-General in March 2011. 19

20. CONCLUSION It is our view that the implementation of this policy, coupled with the fraud prevention strategy and programme, will improve the efficiency and impact of the Department on the prevention, detection and reduction of fraud and corruption within the human settlements sector. 20

21. THANK YOU 21