PROVINCIAL ANTI-CORRUPTION AND FRAUD PREVENTION PLAN 2011-2016

1. PROVINCIAL ANTI-CORRUPTION AND FRAUD PREVENTION PLAN 2011-2016

2. PL ANS TO DETERFRAUD AND CORUPTION • Systems to deter fraud and corruption comprises strengthening internal controls, building financial management capacity and strengthening governance. • These measures are complemented by an Anti- Corruption and Security Management (ACSM) Unit established co-ordinated by the Office of the Premier (OTP) under the ambit of the Provincial Anti-Corruption Forum and Council developed the Anti-Corruption Action Plan (PACAP) which is anchored on Four Pillars.

3. MEASURES TO STRENGTHEN THE FINANCIAL MANAGEMENT CAPACITY • These look at strengthening governance, internal controls, and increasing the footprint of the FIS (LOGIS & BAS) and improving the utilization of PERSAL and its functionality. • Treasury has deployed additional financial management capacity, focusing on Education and Health. PMDS Status Report

4. Focus enhancing Risk Management Strategy • Treasury is increasing its forensic investigative capacity. In the current year three forensic specialists have been appointed within the Technical Support Unitwhich focuses on: • Conducting fraud detection and screening of central supplier database; • Undertaking and providing assistance in fraud and corruption related investigations in provincial departments and liaise with law enforcement agencies; and • Assisting and guiding provincial departments in building Forensic Auditing and Investigative capacity. • Assisting municipalities in relation to Minimum Anti Corruption Capacity as per task team’s mandate. • The newly established Transversal Internal Audit Unit will support elimination of fraud & corruption by: • Promoting an anti-fraud / corruption culture within the province. • Anti-fraud (prevention) awareness workshops to all departments. • Fraud risk assessment for all provincial departments. • Fraud Prevention Strategies (FPS) implemented for all Departments. • Audit or Forensic investigation in areas with high susceptibility to fraud e.g SCM • A Forensic audit business plan has been developed which requires endorsement.

5. Anti-corruption Measures PMDS Status Report

6. Pillar One: Ethics and Fraud and Corruption Prevention • A two pronged approach adopted which involves: • Conduct anti-corruption and ethics awareness workshops; • Conduct training on professional ethics in collaboration with the Ethics Institute of Southern Africa; • 600 officials have been trained at provincial and municipal level to date ; • These sessions include awareness on procurement fraud, tax evasion and what measure to put in place to address these.

7. Pillar Two: COMBATING FRAUD AND CORRUPTION • As a way to encourage employees to report corruption a Whistle Blowing Policy was developed and approved by EXCO, which is consistent with the Protected Disclosure Act and Code of Ethics for the Eastern Cape Public Service. • The subsequent development of the electronic-web database was an important milestone in this regard as cases reported through the National Anti-Corruption Hotline are loaded onto the system and categorized accordingly.

8. Pillar Two: COMBATING FRAUD AND CORRUPTION cont’ • Departmental Fraud prevention plans are linked to the Provincial Fraud Prevention plans for efficient monitoring. • EXCO is considering implementing a policy forbidding public servants from trading with government . • Inroads are being made at municipal level wherein municipalities are being assisted with the development of Fraud Risk Assessments and the development of Fraud Prevention Plans. PALAMA have been approach to assist with capacity building in this regard.

9. Pillar Three: OVERSIGHT, TRANSPARENCY AND ACCOUNTABILITY • Transparency and accountability is enshrined in the Constitution which are key preventative measures against corruption. • It therefore calls for openness and accountability as opposed to abdication of responsibility. • Departments submit to Provincial Treasury monthly reports on incidents of financial misconduct, irregular and fruitless and wasteful expenditure • In terms of the provincial accountability model, these reports are escalated to the MECs on a quarterly basis to raise accountability for possible fraud related activities

10. Pillar Three: OVERSIGHT, TRANSPARENCY AND ACCOUNTABILITY • This therefore promotes reporting on these activities to different government institutions and structures for example legislature, parliament, PSC and EXCO. Status reports are prepare and submitted to these structures on a quarterly, and annual basis or when requested.

11. Pillar Four: PROVINCIAL ANTI CORRUPTION FORUM AND COUNCIL • The establishment of the Anti Corruption forum was established in 2005 represented by Business, Organized labour, BGO sectors, Religious fraternity, Public Service and members of the Executive Council. • The Honourable Premier appointed a member of the Executive Council as political Champion and ultimately Chairperson of the Forum.

12. Pillar Four: PROVINCIAL ANTI CORRUPTION FORUM AND COUNCIL Cont. • This forum’s mandate is to : • Contribute toward the establishment of a provincial consensus through coordination of cross sectional efforts against corruption; • Advise political administration on the implementation of effective strategies to combat corruption; • Share information and best practices on sectoral anti- corruption work; • Advise sectors on the improvement of sectoral anti-corruption strategies.

13. Pillar Four: PROVINCIAL ANTI CORRUPTION FORUM AND COUNCIL Cont. • The Anti Corruption Council comprises of HOD’s; SAPS; SIU, Public Protector, the State Security Agency and the Public service commission. • This structure is chaired by the Director General and its main objectives are: • To ensure the formulation, implementation and evaluation of anti corruption policy in the province; • To coordinate and integrate anti corruption work in the Public service and entities. • To facilitate research on trends and methodologies as well as effective ways of combating corruption. • To monitor the promotion of ethical behaviour in the public service • To ensure that the minimum anti corruption capacity is established in government departments.

14. Minimum Anti-Corruption Capacity • Fraud prevention & detection plans and policies are in place however the capacity in many cases to implement the plans are not available. • The function of anti – corruption is sitting with risk management & internal control. Generally knowledge and expertise to conduct investigations is lacking in these units. This hinders progress in the investigation process. • OTP conducts anti corruptions campaigns and fraud awareness programs on a quarterly basis in departments. OTP monitors investigations in departments and plays an advisory role in this regards. • A National Anti-corruption hotline is in place & quarterly reports are tabled in this regard. • Other initiatives undertaken to minimize fraud and corruption have been: • Centralisation of Supplier database (To reduce procurement fraud & enable blacklisting of suppliers) • NIA processes (Screening of candidates prior to appointment) • Disclosure of Financial Interests • A MAWG has been established to investigate Fraud in the Department of Health. This is a project between the SIU,SARS, National Treasury, Provincial Treasury which is being piloted in the Department of Health