SIU Presentation to Portfolio Committee: Justice and Constitutional Development 08 July 2014 Budget and Delivery Plans for 2014/2015 Justice and Constitutional Development(SIU)

SIU presentation to PC on Justice and Constitutional Development Presentation Outline Preface and Introduction Strategy Overview Programmes to achieve National Imperatives SIU Investigations Performance Targets over the MTEF Budget over the MTEF Human Resources Organisational Capacity Challenges SIU presentation to PC on Justice and Constitutional Development Justice and Constitutional Development(SIU)

SIU presentation to PC on Justice and Constitutional Development Preface and Introduction Introducing the SIU Team Introductory remarks by HoU on progress to date since the outline of the need for a new vision during the previous Committee sitting Presentation on the SIU Budget and Delivery Plans for 2014/2015 Strategy Overview Programmes to achieve National Imperatives Investigations Performance Targets Budget Human Resources Organisational Capacity Challenges Concluding remarks by HoU Questions SIU presentation to PC on Justice and Constitutional Development

SIU presentation to PC on Justice and Constitutional Development Strategy Overview In line with the Government Medium Term Strategic Framework, the current SIU strategy is outlined in two key strategy documents: Five year Strategic Plan: 2015 – 2019 Annual Performance Plan: 2014/2015. The SIU has formulated its new Vision, Mission and Strategic Objectives as follows: Vision: to provide timely professional forensic investigations into maladministration and malpractice in order to protect the public interest and reverse the scourge of corruption in our society. Mission: to use our unique forensic investigation and legal skills in the valiant war on corruption, by conducting forensic investigations into State Institutions and seeking positive results through litigation, disciplinary hearings and criminal prosecutions and by lending necessary assistance to other corruption-busting agencies. The Ultimate Strategic Outcome for the SIU is to uncover corruption, malpractice and maladministration and to win the war against these practices. In order to strive towards these outcomes, the SIU has two Strategic Objectives: Quality forensic investigations, conducting civil and other litigation. Developing and maintaining strategic partner relations. SIU presentation to PC on Justice and Constitutional Development

SIU presentation to PC on Justice and Constitutional Development SIU Programmes to achieve National Imperatives As a result mainly of the amendments to the governing legislation, the Special Investigating Unit and Special Tribunals Act of 1996, the SIU has shifted its focus from principally compiling reports to achieving tangible and concrete outcomes. It is accordingly transforming itself into a results- driven entity. The desired results of this transformation are as follows: The period of investigation to be drastically shortened. Evidence of wrongdoing handed over to state institutions and the prosecuting authority. Offering assistance in the resultant disciplinary enquiries and criminal prosecutions. Where civil litigation is justified, approaching the civil courts for effective relief, mainly recoveries of undue payments. Thereafter, submitting a report to the President. This new approach ensures that maladministration is not only exposed but that the guilty are duly punished and not allowed to retain their ill-gotten gains. It is also in line with public sentiment, which is that beneficiaries of maladministration and corruption should not be allowed to retain benefits. It will also be a more effective deterrent to maladministration and corruption as it conveys the clear message: corruption does not pay. SIU presentation to PC on Justice and Constitutional Development

SIU presentation to PC on Justice and Constitutional Development SIU Investigations There are currently forty six (46) active Proclamations . There are nine (9) applications for new Proclamations. They are currently being processed by the Department of Justice and Correctional Services. SIU presentation to PC on Justice and Constitutional Development

SIU presentation to PC on Justice and Constitutional Development Performance Targets over the MTEF Performance Indicators Unaudited MTEF 2013/2014 2014/15 2015/16 2016/17 Strategic Objective 1: Quality forensic investigations and civil litigation conducted Number of proclamations issued Baseline established 20 25 30 Percentage of issued proclamations finalised 66% The potential value of cash and/or assets recoverable R261m R200m R220m R240m The actual value of cash and/or assets recovered R75,8m R100m R120m R140m Number of civil matters instituted in court or the Special Tribunal 1338 40 Strategic Objective 2: Strategic partner relations developed and maintained Number of referrals made to the NPA 50 55 60 Number of referrals made to the AFU 15 Number of instances where potential disciplinary matters were brought to the attention of relevant state institution 100 120 140 The SIU has revised its performance measures to align directly to its mandate as outlined in the SIU Act. These measures also reflect the new focus of achieving tangible and concrete outcomes, not just compiling reports. The SIU will be actively involved in creating a scenario where as a result of SIU investigations, suspects are arrested and convicted, implicated officials disciplined and monies unduly acquired recovered and returned to the public purse. SIU presentation to PC on Justice and Constitutional Development

SIU presentation to PC on Justice and Constitutional Development Budget over the MTEF Audited Outcome Unaudited MTEF estimate R million 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Non-Operational Component Operational Component 80.8 257.3 128.4 368.0 132.6 282.4 107.6 273.9 140.7 369.5 145.3 385.3 155.8 405.4 Total 338.1 496.4 415.0 381.5 510.2 530.6 561.2 Revenue Sale of Goods and Services 141.2 172.5 124.7 194.3 209.6 213.7 227.6 Other Income 1.4 1.7 3.8 4.1 3.9 Transfers Received 171.1 323.2 369.2 305.2 296.8 313.0 329.7 Total revenue 313.7 497.3 497.7 503.6 Current payments Compensation of employees 182.1 203.6 235.6 259.1 298.1 317.2 337.2 Goods and services 146.0 276.5 162.0 113.7 198.7 196.2 203.3 Depreciation 9.9 16.2 17.5 8.7 13.4 17.2 20.6 Total Expenses Surplus/(Deficit) (24.0) 1.0 83.0 122.1 SIU presentation to PC on Justice and Constitutional Development

Income and Expenditure Budget breakdown Income and Expenditure   Audited 2012/13 Unaudited 2013/14 Budget 2014/15 Income R'000 R’000 Grants Received 340 712 295 859 296 800 Project Income 153 139 203 718 209 600 Other income 3 815 4 141 3 800 Total Income 497 666 503 718 510 200 Expenditure Employee Costs 235 558 259 169 298 100 Investigative Consultants 82 924 5 098 8 094 Travel and Accommodation 15 416 15 387 15 156 Depreciation 17 473 8 705 13 400 Finance Costs 7 Other Expenses 63 642 93 338 175 450 Total Expenditure 415 020 381 587 Surplus 82 646 122 131 SIU presentation to PC on Justice and Constitutional Development

SIU presentation to PC on Justice and Constitutional Development Narrative on Budget Total Income The 2014/15 budgeted income is 1.3% higher than the 2013/14 actual spending. The increase is mainly driven by the project income as the SIU’s right to charge and recover for services rendered to state institutions is regularised by the SIU Act. Expenditure trends Employee costs are budgeted to increase by 15%. This is due to the increase in human resource capacity. The number is projected to increase from 564 in 2013/14 to 668 in 2016/17. The entity has a funded establishment of 668 positions of which 87 are vacant. The main driver for the projected increase in other expenses over the medium term is the costs associated with the establishment of the Special Tribunals. SIU presentation to PC on Justice and Constitutional Development

SIU presentation to PC on Justice and Constitutional Development Human Resources Total staff compliment as at 1 April 2014: 564 Permanent: 412 Fixed term contract:152 Operational staff: 445 Non operational staff: 119 Employment Equity Race African Coloured Indian White Total Gender   Gender  Percentage Female 168 23 32 65 288 51% Male 161 13 29 73 276 49% Total Race 329 36 61 138 564 Percentage 59% 6% 11% 24% SIU presentation to PC on Justice and Constitutional Development

SIU presentation to PC on Justice and Constitutional Development Organisational Capacity The SIU will be reviewing its operating model to align it with the new vision in order to achieve efficiencies in its core business. A process to set up the Special Tribunal will be put in motion. The new approach will require flexibility in employee numbers enabling the SIU to grow and shrink based on demand of its services. New Specialists will be sourced. SIU presentation to PC on Justice and Constitutional Development

SIU presentation to PC on Justice and Constitutional Development Challenges Challenge Mitigation Strategy Inflow of Proclamations Not in the SIU’s hands Limited legal specialist resources for investigations and litigation Approaching the Profession to source in specialist on fixed-term contracts Slow progress in referred cases The SIU is being restructured to provide assistance to relevant institutions in disciplinary enquiries and criminal prosecutions SIU presentation to PC on Justice and Constitutional Development

SIU presentation to PC on Justice and Constitutional Development End Thank You SIU presentation to PC on Justice and Constitutional Development