1 / 18

ANTI - FRAUD AND CORRUPTION AWARENESS

SECURITY & INVESTIGATION SERVICES:. ANTI - FRAUD AND CORRUPTION AWARENESS. 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.

kerri
Download Presentation

ANTI - FRAUD AND CORRUPTION AWARENESS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. SECURITY & INVESTIGATION SERVICES: ANTI - FRAUD AND CORRUPTION AWARENESS

  2. 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:

  3. 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

  4. 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 Dealswith search, arrest, seizure, entering of premises, forfeiture, disposal of property connected with crime, appearance of the accused, use of force to affect arrest.

  5. 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 municipalities and other institutions in the local sphere of government

  6. 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

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

  8. PROCESS OF CORRUPTION CORRUPTORCORRUPTEEUNLAWFUL - 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)

  9. 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.

  10. 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.

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

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

  13. 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

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

  15. PROACTIVE (INITIATIVE) • POLICY DOCUMENT ON SPESIFIC TASK/ SERVICE • CODE OF CONDUCT • REPORTING FACILITY: NACH 0800 701 701 • EFFECTIVE INTERNAL CONTROLS • EFFECTIVE INTERNAL AUDIT • PREVENTION OF CORRUPT ACTIVITIES ACT 12 OF 2004 • PFMA AND TREASURY REGULATIONS

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

  17. Reporting fraud / corruption • Any corrupt activity should to be reported to • NACH ( National Anti – Corruption Hotline) National Toll free - 0800 701 701 • Personal visit to Investigation offices or call 015 298 7196 • Director General @ 015 287 6273/6263 • CFO 015 298 7107/8

  18. THANK YOU QUESTIONS?

More Related