FACT SHEET ON COMPLIANCE WITH THE FINANCIAL DISCLOSURE FRAMEWORK FOR THE 2014/2015 FINANCIAL YEAR

1. FACT SHEET ON COMPLIANCE WITH THE FINANCIAL DISCLOSURE FRAMEWORK FOR THE 2014/2015 FINANCIAL YEAR PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION AS WELL AS PLANNING PERFORMANCE MONITORING AND EVALUTION 21 OCTOBER 2015

2. INTRODUCTION • All members of the Senior Management Service (SMS) are, in terms of Chapter 3, C.1 of the Public Service Regulations (PSR), required to disclose to their respective Executive Authorities (EAs), particulars of all their registrable interests (e.g. companies and properties) 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. • 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. • The purpose of the Fact Sheet on the Financial Disclosure Framework is, therefore, to monitor compliance rate by providing a statistical analysis of the financial disclosure forms that were received by the PSC by the due date. • Figure 1 below illustrates the submission of financial disclosure forms by national and provincial departments by the due date for the past five years.

3. COMPARISON OF THE SUBMISSION RATE OF FINANCIAL DISCLOSURE FORMS OVER THE PAST FIVE YEARS Figure 1: Submission of financial disclosure forms by national and provincial departments by the due date for the 2010/2011, 2011/2012, 2012/2013 , 2013/2014 and 2014/2015 financial years. • Figure 1 above shows that the compliance rate for the 2014/2015 financial year was 79%. It further shows that there was a slight decrease of 6%compliance in the current (2014/2015) financial year compared to 85% recorded during the previous financial year (2013/2014).

4. SUBMISSION OF FINANCIAL DISCLOSURE FORMS BY NATIONAL DEPARTMENTS AND PROVINCES FOR THE 2014/2015FINANCIAL YEAR • The number of forms received and outstanding from both the national and provincial departments for the 2014/2015 financial year is shown in Table 1below: Table 1:Submission of financial disclosure forms by national and provincial departments for the 2014/2015 financial year as at 31 May 2015

5. SUBMISSION OF FINANCIAL DISCLOSURE FORMS BY NATIONAL DEPARTMENTS AND PROVINCES FOR THE 2014/2015 FINANCIAL YEAR (Continued) • Table 1 above shows that, the overall compliance rate as at the due date of 31 May 2015 stood at 79%. • The national departments recorded 68% submission rate by the due date. • The total compliance rate in respect of provincial departments was 95% by the due date. • The Northern Cape and Western Cape are the only two Provinces that achieved a 100% compliance rate by the due date. • Fourteen (14) national departments and seven (7) provincial department did not submit a single financial disclosure form to the PSC by the due date of 31 May 2015. This contributed to the poor submission rate that was recorded nationally. • Out of a total of 5684 SMS members in national departments, the PSC received 3784 (68%) financial disclosure forms by the due date. • Only twenty-two (22) of the forty-four (44) national departments achieved the required 100% compliance rate by the due date of 31 May 2015. • The departments that did not submit financial disclosure forms by the due date for the 2014/2015 financial year are shown in Table 2 below.

6. NONE SUBMISSION OF A SINGLE FINANCIAL DISCLOSURE FORM BY THE DUE DATE Table 2: Departments that did not submit financial disclosure forms by the due date of 31 May 2015

7. DEPARTMENTS THAT ARE REGARDED AS REPEAT OFFENDERS • Repeat offenders are those departments that failed to submit their financial disclosure forms by the due date of 31 May for two (2) consecutive financial years. • These are shown in Table 3 below. Table 3. Non-submission of financial disclosure forms to PSC by the due date of 31 May for the two consecutive financial years (2013/2014 and 2014/2015)

8. DEPARTMENTS THAT SUBMITTED LESS THAN 100% FINANCIAL DISCLOSURE FORMS BY THE DUE DATE OF 31 MAY 2015 • Seven (7) departments submitted their financial disclosure forms by the due date but did not achieve the required 100% submission rate. • They are reflected in Table 4 below. Table 4: Submission of financial disclosures by national departments by the due date for the 2014/2015 financial year

9. SUBMISSION OF FINANCIAL DISCLOSURE FORMS BY DIRECTORS-GENERALFOR THE 2014/2015 FINANCIAL YEAR • Out of 45 Directors-General of the national departments only 35 submitted their financial disclosure forms by the due of 30 April 2015 to their respective Executive Authorities. • Out of this 35, twenty-six (26) were submitted to the PSC by the stipulated due date of 31 May 2015. Nine (9) disclosure forms were not received by the PSC by the due date although the relevant Directors-General complied internally. • The Directors-General of Arts and Culture, Defence, Human Settlements, State Security Agency, Independent Police Investigative Directorate, Military Ombud and Women did not submit their financial disclosures forms at all (to the PSC or filed via eDisclosure).

10. SUBMISSION OF FINANCIAL DISCLOSURE FORMS BY PROVINCIAL DEPARTMENTSFOR THE 2014/2015 FINANCIAL YEAR • There has been an improvement of 20% by provincesin the last five years by the due date. 75% was recorded during 2010/2011 financial year whereas during 2014/2015 financial year, 95% was recorded. • A comparison of the submission rate by provincial departments as at the due date in respect of the last five years is shown in Figure 2 below: Figure 2: Compliance rate by provincial departments for 2010/2011, 2011/2012, 2012/2013, 2013/2014 and 2014/2015 financial years as at the due date

11. BREAKDOWN OF COMPLIANCE RATE BY PROVINCES • Table 5 below shows a breakdown of compliance rate by provinces for the 2014/2015 financial year: Table 5: Submission of the financial disclosure forms by provincial departments for the 2014/2015 financial year as at due date of 31 May 2015.

12. BREAKDOWN OF COMPLIANCE RATE BY PROVINCES (Continued) • Table 5 shows that only two (2) provinces managed to record 100% compliance by the due date of 31 May 2015. They are, Northern Cape and Western Cape. • It has to be noted that the Northern Cape recorded 100% compliance rate by the due for the past four (4) financial years and Western Cape recorded 100% compliance rate by the due date for the past five (5) financial years. • The table further shows that 3461 SMS members submitted their financial disclosures via eDisclosure whereas 488 SMS members submitted manually. This shows the state of readiness to utilise eDisclosure and how well it has been received and embraced by SMS members. • Out of 4163 provincial SMS members, the PSC received a total number of 3949 financial disclosure by the due date. 214 financial disclosure forms were outstanding. • The PSC is of the view that provincial legislatures must hold the EAs accountable for the poor performance of their departments.

13. CONCLUSION • The PSC is concerned that there are still instances where SMS members submit their financial disclosure forms on time to their respective EAs, but the EAs delay in submitting the forms to the PSC. • The obligation to submit the disclosure forms to the PSC rests with the EAs. • EAs are under an obligation to report on actions that have been taken against transgressors, and where no action has been taken, to provide reasons to the PSC.

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