PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION/ PERFORMANCE MONITORING & EVALUATION FACT SHEET ON COMPLIANCE WITH THE FINANCIAL DISCLOSURE FRAMEWORK FOR THE 2012/2013 FINANCIAL YEAR
OUTLINE OF PRESENTATION • Introduction • Efforts to counter non-compliance with the framework • Submission of financial disclosure forms by the due date of 31 May 2013 • Trend analysis on the submission of forms • Compliance by • national departments • Provinces • Directors-General • Provincial Directors-General and HoDs • Observations regarding the implementation of the FDF for the 2012/13 reporting period • Recommendations • Conclusion
INTRODUCTION • Shares and other financial interests • Directorships and partnerships • Remunerated work outside the public service • Consultancies and retainerships • Sponsorships • Gifts and hospitality from a source other than a family member • Land and property • Chapter 10 of the Constitution provides, amongst others, that a high standard of professional ethics must be promoted and maintained in the Public Service. • To this effect, all members of the Senior Management Service (SMS) are, in terms of the Public Service Regulations (PSR), required to disclose to their respective Executive Authorities (EAs), particulars of all their registrable interests not later than 30 April each year, in respect of the period 1 April of the previous year to 31 March of the current year.
INTRODUCTION (2) • The PSR further require of the EAs to submit copies of the forms on which the designated employees disclosed their financial interests, to the Public Service Commission (PSC) by not later than 31 May of each year. • Any person who assumes duty as an SMS member (or a designated employee) after 1 April in a year is required to make such a disclosure within 30 days after assumption of duty in respect of the period of 12 months preceding his/her assumption of duty. • Executive Authorities are required to submit such forms to the PSC, within a period of 30 days after they have been submitted. • Upon compilation of the Fact Sheet, the PSC brings the state of compliance with the Financial Disclosure Framework ( FDF) to the attention of the EAs.
EFFORTS TO COUNTER NON-COMPLIANCE WITH THE FDF • Due to past experiences of non-compliance with the requirement to file copies of the financial disclosure forms by the due date, strategies aimed at improving the compliance rate were implemented: • Letters were sent to the EAs to remind them of their responsibility to ensure that the forms are submitted on time. • The Short Messaging System was used to remind Directors-General and Heads of Department (HoDs) to assist EAs in ensuring that the forms are submitted on time. This is despite the fact that the submission of financial disclosure forms is not a delegated function, but an EA’s function. • An advertisement was posted in the print media (newspapers) in order to attract the attention of a wider spectrum of the relevant stakeholders, including SMS members.
TREND ANALYSIS ON THE SUBMISSION OF FORMS • The 2012/2013 reporting period shows a significant improvement in the submission of financial disclosure forms.
TREND ANALYSIS ON THE SUBMISSION OF FORMS (2) • Despite significant improvement in the submission rate by the due date in the current reporting period, there are some departments, both at national and provincial level that did not submit a single financial disclosure form to the PSC by the due date of the 31 May 2013. • This has affected the overall submission rate that has been recorded nationally.
COMPLIANCE BY NATIONAL DEPARTMENTS • Of the 5 425SMS members in national departments who were required to submit their financial disclosure forms for the 2012/2013 financial year, the PSCreceived 4 413(81%) by the due date of 31 May 2013. • The financial disclosure forms of 1012 SMS members were outstanding by the due date of 31 May 2013. • Out of 45 departments at national level, 24departments achieved a required 100% submission rate by the stipulated due date. • Tendepartments recorded partial compliance by submitting forms by the due date, albeit not the required 100%. • Elevendepartments had, as at the due date of 31 May 2013, not submitted a single financial disclosure form.
COMPLIANCE BY NATIONAL DEPARTMENTS (2) National departments that failed to submit forms by the due date
COMPLIANCE BY PROVINCES • The total number of SMS members who were compelled to disclose their financial interest within the provincial departments during 2012/2013 financial year was 4 002. • Out of this total, only 3 517 (88%)SMS members submitted their financial disclosure forms that were received by the PSC by 31 May 2013. • Financial disclosure forms of 485 (12%)SMS members were outstanding by the due date of 31 May 2013. • Three (3) provinces (Mpumalanga, Northern Cape and Western Cape) have complied with the Framework by recording a 100%submission rate by the due date of 31 May 2013.
COMPLIANCE BY PROVINCES (2) • Provincial departments that failed to submit forms by the due date
COMPLIANCE BY DIRECTORS-GENERAL • The financial disclosure forms of 34 Directors-General from national departments were received by the due date of 31 May 2013. • Included in the list is the Acting Director-General of the Department of Public Service & Administration. • The financial disclosure forms of the following seven (7) Directors-General were not submitted to the EAs by 30 April 2013. It was submitted to the PSC by the due date of 31 May 2013: • International Relations & Cooperation • Justice & Constitutional Development • National Treasury • Science & Technology • South African Police Service • Independent Police Investigative Directorate
COMPLIANCE BY DIRECTORS-GENERAL (2) • The financial disclosure forms outstanding by 31 May 2013:
COMPLIANCE BY PROVINCIAL DGs AND HODs • AllProvincial Directors-General complied with the Framework. • Eight EAs (Premiers), excluding the Premier of Kwazulu-Natal, had complied with the Framework by ensuring that the disclosure forms are received by the PSC by the due date of 31 May 2013. • The financial disclosure form of oneDirector-General, i.e. KwaZulu-Natal Province, was received by the PSC on 03 June 2013.
OBSERVATIONS REGARDING THE IMPLEMENTATION OF THE FDF FOR THE 2012/2013 REPORTING PERIOD • There is unwillingness on the part of certain SMS members to declare their registrable interest as required by the Framework. • To this end, a total of 1 497 financial disclosure forms are outstanding. • The above-mentioned figure also includes SMS members who have been placed on suspension and those who are on sick leave. • Some departments did not make concerted efforts to obtain completed financial disclosure forms from officials who were either on suspension or sick leave. • Failure to submit financial disclosure forms impacts negatively on the integrity of the Framework. • As a result it undermines the fight against corruption in the Public Service.
OBSERVATIONS REGARDING THE IMPLEMENTATION OF THE FDF FOR THE 2012/2013 REPORTING PERIOD • There were instances where employees/ managers submit their financial disclosure forms by 30 April to their respective EAs, but the EAs delayed the submission of such financial disclosure forms to the PSC. • There were departments that improved on the submission of the financial disclosure forms by the due date from 49% in 2008/2009 financial year to 84% in 2012/2013 financial year. • This is still not adequate because only 100%is expected from the departments with regard to the submission of the financial disclosure forms.
RECOMMENDATIONS • EAs must take appropriate disciplinary action against all SMS members who, without valid reasons, fail to submit their financial disclosure forms on time. • Departments must devise some means to enable SMS members who are on leave or on precautionary suspension to complete and submit their financial disclosure forms. • EAs must note and sign financial disclosure forms only after the required oath or affirmation has been administered by the Commissioner of Oaths/Justice of the Peace. • The ethical infrastructure in the offices of the EAs should assist the EAs with the management of the Financial Disclosure Framework.
RECOMMENDATIONS (2) • Departments must indicate the names of the SMS members who could not submit their financial disclosure forms. • SMS members on sick leave must, unless if circumstances dictate otherwise, have the forms delivered to them, preferably by a departmental official who is also a commissioner of oaths, and be assisted with the completion and submission of the form. • Portfolio Committees must closely monitor the status of compliance with the Framework by SMS members in the respective departments and call defaulting EAs and employees to account. • Portfolio Committees should assist in ensuring that recommendations made by the PSC are implemented.
CONCLUSION • Actions against defaulting SMS members should become visible through decisions by EAs; a culture of zero tolerance for unethical behaviour should be entrenched in the day to day functioning of the State. • An important ingredient in successfully applying the financial disclosure system is political support and leadership. • The PSC is concerned that despite constant reminders, many departments do not submit their financial disclosure forms by the due date. • The obligation to submit the disclosure forms to the PSC rests with the EAs. • The PSC is, therefore, of the opinion that the EAs should take action against SMS members who failed to comply with the Framework.
Thank you Siyabonga PSC Website: www.psc.gov.za National Anti-Corruption Hotline for the Public Service: 0800 701 701 National Anti-Corruption Hotline for the Public Service: 0800 701 701