APAC ANNUAL CONFERENCE PRESENTATION TO THE APAC ANNUAL CONFERENCE “The place of ethics and values in the fight towards strengthened transparency and financial accountability in the public sector” 22 – 25 September 2014

KEY MESSAGE A high standard of professional ethics needs to be promoted and maintained by the Public Service, especially through compliance with the Code of Conduct. The Public Service Commission (PSC), through the exercise of its mandate plays a critical role in the promotion of professional ethical values such as transparency and accountability Senior managers must comply with the Financial Disclosure Framework as it provides the means to guard the integrity of the Public Service.

KEY MESSAGE (2) The National Anti-Corruption Hotline is a simple, yet highly effective management tool designed to enable whistleblowing against corruption and unethical conduct. The Public Finance Management Act as a mechanism must be used to hold officials accountable for the management of public funds. In this regard, there is a need to improve the management of financial misconduct cases. The Batho Pele Principles provide for standards of service delivery to citizens and as an accountability mechanism to be used by the public.

STRENGTHENING ACCOUNTABILITY In 2012/13 financial year, the expenditure of the national and provincial departments of education, health and public works contributed to almost 80% of the total spending by departments. 57% of the financial statements of these departments received financially qualified opinions. In total, 16 (53%) of the departments of education, health and public works did not achieve 20% or more of their planned performance targets.

STRENGTHENING ACCOUNTABILITY The state of financial management and the achievement of targets in education and health is of concern considering that- The quality of school education remains a challenge notwithstanding improved results. The provision of learning and teaching materials is fraught with delays and inefficiency. Inadequate organisational support to teachers and the efficacy of the bureaucracy. Insufficient capability to ensure that the country has sufficient health care professionals for an expanding population and an increasing disease burden. Inadequate management, including procurement processes, as well as the deteriorating health care facilities require attention to improve access to all.

STRENGTHENING ACCOUNTABILITY (2) The report by the SA Human Rights Commission, “Water is Life. Sanitation is Dignity: Accountability to People who are Poor”, dedicated to Michael Komape (6 years old) of Chebeng in Limpopo, who fell into a pit toilet at his school and died, highlights that poor and rural people continue to have minimal access to quality water and sanitation. The Development Indicators 2012, launched by the Presidency in August 2013, reflect that although access to water has improved, the quality and functionality of water services remains a problem, largely due to neglect or routine operation and maintenance of infrastructure.

STRENGTHENING ACCOUNTABILITY (3) The Development Indicators 2012 also reflect that access to sanitation has improved. However, in 2012/13, the Department of Human Settlements had material underspending of the Rural Household Infrastructure Grant. As a consequence, the Department did not achieve certain of its objectives to provide sanitation services to rural communities.

ROLE AND MANDATE OF THE PSC The legislative mandate of the PSC includes an educational aspect - in terms of section 196(4) of the Constitution, the powers and functions of the PSC are to promote the constitutional values and principles in the Public Service (Section 195). These principles of good governance are both the foundation and framework for clean public administration in South Africa. They characterise the kind of public servant expected to drive quality service delivery: principled and value-driven. Professional ethics Efficient, economic and effective use of resources A development-orientated public administration Provision of services in an impartial, fair and equitable way Public Participation Accountability Transparency Good HR management and career-development practices Representivity

STEPS TOWARDS INSTILLING TRANSPARENCY AND ACCOUNTABILITY Instilling a culture of transparency and accountability, especially financial accountability as part of the routine work of officials is an ongoing task that all of us need to commit ourselves to. The purpose of the Public Finance Management Act (PFMA) is to establish the framework for accountable management of public funds. It also provides for appropriate action to be taken against Heads of Department and employees if found guilty of financial negligence, unauthorized, fruitless or wasteful expenditure. The PFMA, read with the Treasury Regulations, require national and provincial departments to report on finalized financial misconduct cases to the PSC.

THE NEED FOR INSTILLING TRANSPARENCY AND ACCOUNTABILITY (2) The number of cases of financial misconduct reported to the PSC and the cost of financial misconduct. Million * * Preliminary figures

THE NEED FOR INSTILLING TRANSPARENCY AND ACCOUNTABILITY (3) SMS members (salary level 13 – 16) are more susceptible to circumstances that may lead to transgressions of the PFMA, due to their constant involvement in financial management. It is worrying that over the years there has been a steady increase in the number of SMS members charged with financial misconduct.

THE NEED FOR INSTILLING TRANSPARENCY AND ACCOUNTABILITY (3) Considering that in the 2011/2012 financial year R229 million was reported as the cost of financial misconduct to the Public Service, we have a long way to go. Such a loss, often to wasteful and irregular expenditure, is unconscionable in a country which has been identified as the most unequal in the world! Such wastage results in poor service delivery which in turn leads to service delivery protests. Accountable governance is demonstrated through the efforts of government to recover monies lost through financial misconduct. During the 2011/2012 financial year, more than R150 million was recovered from employees found guilty of financial misconduct. This constituted a 66% recovery rate. The rate of recovery demonstrates that departments have become more responsive to the need to hold officials accountable for financial irregularities.

STEPS TOWARDS INSTILLING TRANSPARENCY AND ACCOUNTABILITY (4) The Code of Conduct for the Public Service seeks to promote professional values in the execution of duties in the public interest. It serves as a guide to proficiency, professionalism and ethical standards for public servants in the performance of duties. Induction of the Code of Conduct is, therefore, the basis for starting to infuse ethical values into the daily workings by public servants. It is the means of holding officials accountable, since it states in clear and unambiguous terms what is expected of public servants in their relationship to elected officials, to the public, to dealing with public monies and to relationships amongst themselves.

STEPS TOWARDS INSTILLING TRANSPARENCY AND ACCOUNTABILITY (5) The Financial Disclosure Framework for the Public Service is aimed at promoting the perception of integrity in government by preventing conflicts of interest before they occur. In terms of the Framework all senior managers are required to disclose the particulars of all their registrable interests (e.g. companies and properties) to their respective Executive Authorities by not later than 30 April each year. * Verification of information underway

STEPS TOWARDS INSTILLING TRANSPARENCY AND ACCOUNTABILITY (6) Identification of cases of conflicts of interest in respect of the 2011/2012 financial year: National departments/ province No of SMS members No of disclosures scrutinized % of SMS members with potential conflicts of interest National 5206 4877 19% Eastern Cape 621 0% Free State 331 243 Gauteng 648 639 22% Kwazulu-Natal 520 334 5% Limpopo 494 136 51% Mpumalanga 299 289 18% Northern Cape 227 228 25% North West 312 210 40% Western Cape 358 326 13%

STEPS TOWARDS INSTILLING TRANSPARENCY AND ACCOUNTABILITY (7) The National Anti-Corruption Hotline (NACH) which was operationalised in September 2004 is a mechanism to prevent and combat corruption. The NACH, an initiative of Government aimed at promoting and encouraging reporting on corrupt practice, is managed by the PSC and offers anonymous reporting. To provide for maximum access, various methods of reporting have been made available to anyone who needs to report any allegation. This includes free telephone (0800 701 701); e-mail, fax, or communicating via sms for a call back. There has been a gradual increase in the recovery of money and the number of disciplinary sanctions taken against perpetrators.

STEPS TOWARDS INSTILLING TRANSPARENCY AND ACCOUNTABILITY (8) A total of 3439 officials were found guilty of misconduct related to corrupt activities between 01 September 2004 and 31 March 2014. The successful investigation of cases of alleged corruption reported through the NACH cases resulted in the recovery of R333 million from perpetrators since the inception of the NACH.

IMPLEMENTING THE BATHO PELE PRINCIPLES The Batho Pele principles were first introduced in 1997 to enhance service delivery. 8 BATHO PELE PRINCIPLES 3. Openness and Transparency 8. Value for money 4. Information 6. Courtesy 5. Redress 7. Service Standards 1. Access 2. Consultation

IMPLEMENTING THE BATHO PELE PRINCIPLES (2) Through small actions such as common courtesy and friendly access, as envisaged in these principles, citizens will feel heard, empathy and experience that they “come first” during the delivery of services. These principles are also the standard against which citizens are to judge the quality of services that are rendered to them. In terms of the Batho Pele Principles, government departments need to indicate the relevant standards in order to render specific services. The public can check that the principles and standards are displayed in plain view and secondly, hold frontline service providers to the standards displayed. In this regard the Batho Pele principles become a clear mechanism through which the public can hold officials accountable for the type and quality of services they receive.

CONCLUSION We need to ensure that transparency and accountability become entrenched as the working standards of all public servants. As the twin cornerstones of good governance, transparency and accountability should be seen as two sides of the same coin. Transparency “reveals” processes and reasons for decisions and in so doing provides the basis for holding employees to account. Building on these values will play an important role in the prevention of corruption and maladministration. The ethical values of transparency and accountability, lived out in public administration, and promoted as part of a high standard of professional ethics, are the sine qua non for effective and responsible governance, especially during this Public Service Month and beyond.

Thank you Siyabonga PSC Website: www.psc.gov.za National Anti-Corruption Hotline for the Public Service: 0800 701 701