MANAGEMENT OF THE NATIONAL ANTI-CORRUPTION HOTLINE (NACH) BY THE PUBLIC SERVICE COMMISSION PRESENTER : COMMISSIONER NKOSI DATE : 21 NOVEMBER 2018 VENUE : COMMITTEE ROOM 42, GROUND FLOOR, GOOD HOPE BUILDING, PARLIAMENT

OUTLINE OF PRESENTATION INTRODUCTION GOVERNMENT INITIATIVES IN COMBATING CORRUPTION MANAGEMENT OF THE NACH CASES CUMULATIVE NACH STATS AS AT 31 OCTOBER 2018 IN-HOUSE MANAGEMENT OF THE NACH CASES REPORTED DURING THE 2017/2018 AND 2018/2019 FINANCIAL YEARS AND REFERRED FOR INVESTIGATION TYPES OF CORRUPTION CASES REPORTED DURING THE 2017/2018 FINANCIAL YEAR SUCCESS OF THE NACH FROM THE PERIOD 1 SEPTEMBER 2004 TO 31 OCTOBER 2018 FUNDING OF THE NACH CHALLENGES EXPERIENCED ON THE MANAGEMENT OF THE NACH CONCLUSION

INTRODUCTION In terms of section 196 of the Constitution of the Republic of South Africa, the Public Service Commission (PSC) is mandated to promote the values and principles governing public administration. One of these values {Section 195 (1) (a)} is to promote and maintain a high standard of professional ethics in the public service. In pursuance of this mandate the Commission has been at the forefront in addressing corruption fraud in the Public Service. The global discourse on good governance is underpinned by the expectation that government should be proactive in fighting the spread of corruption and in promoting an integrity-driven form of administration.

INTRODUCTION (CONTINUED) Accompanying such an integrity driven administration should be the political will to put in place enabling policies and a commitment to implement them. Corruption is endemic in many governments and is found in democratic and dictatorial politics, feudal, capitalist and social economies. It has been aptly described as “a cancer festering within society, enriching a few and impoverishing many”. Corruption is a threat to the rule of law and the administration of justice.

GOVERNMENT INITIATIVES IN COMBATING CORRUPTION The PSC was mandated by Cabinet to manage the NACH. The NACH came into effect on 1 September 2004 under the management of the PSC, and it provides a “one-stop” mechanism for members of the public to report acts of corruption anonymously. The aim for the establishment of the NACH was to create a central data base for the reporting and monitoring of alleged cases of corruption in the Public Service to avoid “forum shopping” by complainants which leads to the duplication of investigation and resources.

MANAGEMENT OF THE NACH CASES Cases reported through the NACH are captured on the Case Management System (CMS) and forwarded to relevant national and provincial departments, and public entities for investigation in accordance with agreed protocols. These departments and public entities are required to provide feedback to the PSC on progress made within 40 days on progress. Feedback on the cases investigated is updated on the CMS of the NACH on a regular basis in order to provide information to complainants. A full investigation report by departments is submitted to the PSC when the matter is concluded and signed off by the relevant authority.

CUMULATIVE NACH STATS AS AT 31 OCTOBER 2018 NATIONAL/ PROVINCE CASES REFERRED FEEDBACK RECEIVED % Feedback received CASES CLOSED % Cases closed OUTSTAND-ING CASES National 7486 6619 88% 6399 85% 107 Eastern Cape 836 686 82% 676 81% 160 Free State 376 324 86% 52 Gauteng 2083 1843 1836 247 KZN 859 691 80% 684 175 Limpopo 609 483 482 79% 127 Mpumalanga 1189 1148 97% 41 North West 467 404 87% 400 67 Northern Cape 140 113 112 28 Western Cape 683 606 89% 544 139 Public Entities 5998 5981 100% 5977 21 TOTAL 20726 18898 91% 18582 90% 2144

CUMULATIVE NACH STATS AS AT 31 OCTOBER 2018 (Continued) Between 01 September 2004 and 31 October 2018 the PSC generated a total of 20726 cases from the calls that were received through the NACH. These cases were referred to the relevant government departments and public bodies/entities for investigation. Feedback was received in respect of 18 898 of these cases. The PSC has as at the 31 October 2018, managed to close 18 582 of the cases upon receipt of satisfactory feedback on how the cases were dealt with. In total, 2144 cases referred to national departments and provincial departments are still pending as at 31 October 2018 due to lack of investigative capacity. National departments that have the highest number of outstanding cases are SAPS (156), Correctional Services (219) and Home Affairs (133) and provinces with the highest number of outstanding cases are Gauteng (233), Eastern Cape (161), Kwa-Zulu Natal (175), Limpopo (123) and Mpumalanga with 35. In this respect, the PSC has conducted in-loco inspection in departments to fast- track the investigation of these cases.

IN-HOUSE MANAGEMENT OF THE NACH The NACH was outsourced in 2004 to a third party due to lack of adequate equipment and resources to manage it, The PSC was given R3.808, 181 million for the management of the hotline system including personnel costs. In 2015, the cost of the NACH was R4 738 000.0 per annum including personnel costs. At that point in time, the PSC required additional five employees to manage the call centre, the case management system, referrals, marketing and monitoring. The National Treasury indicated that due to the economic outlook of the country funds could not be made available to the PSC for the management of the NACH. Therefore, adequate funds were not allocated to the PSC to manage the NACH. Considering the above imperatives, the PSC took a decision in May 2016 to manage the NACH in-house in order to reduce costs as well as to focus on quality and accountability. The NACH is available for 8 (eight) hours a day manned by the Early Resolution Officers and after hours there is a recording device where complainants can leave messages.

CASES REPORTED DURING THE 2017/2018 FINANCIAL YEAR AND REFERRED FOR INVESTIGATION NATIONAL/ PROVINCE CASES REFERRED FEEDBACK RECEIVED % FEEDBACK RECEIVED CASES CLOSED % CASES CLOSED OUTSTANDING CASES National 162 26 16% 23 14% 139 Eastern Cape 28 2 7% Free State 10 1 10% 9 Gauteng 22 4 18% 18 KwaZulu-Natal 0% Limpopo 17 Mpumalanga 12 33% 8 North West Northern Cape 3 Western Cape 16 Public Entities 594 100% TOTAL 882 631 72% 628 71% 254

CASES REPORTED DURING THE 2017/2018 AND 2018/2019 FINANCIAL YEARS AND REFERRED FOR INVESTIGATION During the financial year 2017/2018, the PSC received a total of eight hundred and eighty two (882) complaints of alleged corruption. These complaints were referred to the national and provincial departments as well as public entities for investigation. A total of 186 complaints were reported to the NACH during the first quarter of 2018/2019 financial year whilst a total of 286 complaints were reported during the second quarter 2018/2019 financial year . In total the PSC received 472 cases. The PSC recognizes that more work will have to be done to sustain the integrity and credibility of the NACH especially by its stakeholders.

TYPES OF CORRUPTION CASES REPORTED DURING THE 2017/2018 FINANCIAL YEAR

TYPES OF CORRUPTION CASES

TYPES OF CORRUPTION CASES REPORTED DURING THE 2017/2018 FINANCIAL YEAR The top six categories of alleged corruption reported through the NACH during 2017/2018 financial year were: Social grant fraud (594) (Medical doctors authorizing grants unlawfully) Unethical behaviour (69) (taking annual leave without authorization) Fraud and bribery (34) (such as traffic officials receiving bribes from motorists and officials receiving kickbacks from members of the public in order to obtain Government tenders etc.), Appointment irregularities (26) (fraudulent qualification and not following appointment procedures) Procurement irregularities (24) (collusion between a person involved in the awarding of a tender and an associate who is often a family member or friend seeking to win the tender) Abuse of government resources (18) (government-owned vehicles were being used as taxis for personal benefit)

SUCCESS OF THE NACH FROM THE PERIOD 1 SEPTEMBER 2004 TO 30 OCTOBER 2018 The efficiency with which the departments investigate allegations of corrupt activities reported referred to them contribute towards the effectiveness of the NACH. Some of the successes of the NACH are that a total of 3 655 officials were found guilty of misconduct related to corrupt activities reported through the NACH since its inception (i.e. between 01 September 2004 and as at 30 October 2018). The following sanctions were imposed against the said officials: 1 740 officials were dismissed from the Public Service. 450 officials were fined. 140 officials were demoted. 927 officials were given final written warnings. 395 officials were criminally prosecuted.

CHALLENGES EXPERIENCED ON THE MANAGEMENT OF THE NACH Finalization of cases by Departments: In terms of the NACH protocols, cases of alleged corruption are closed on the CMS of the NACH when the matter has been investigated and disciplinary actions are concluded. Previous studies of the PSC into the investigation of the NACH cases have shown that Departments generally do not have adequate capacity to investigate cases of alleged corruption reported on the NACH and referred to them.

CHALLENGES EXPERIENCED ON THE MANAGEMENT OF THE NACH Protection of whistleblowers and investigators : One of the key issues in the effective management of the NACH relates to the reporting of cases of alleged corruption. Whistleblowers are sometimes intimidated by senior officials and Executive Authorities when reporting corrupt activities or investigating cases of alleged corruption reported on the NACH.

CONCLUSION The NACH remains a vital tool which helps government departments to combat corruption in the Public Service. In terms of the country’s vision for 2030 as contained in the National Development Plan, the NACH contributes towards “A South Africa in which an empowered citizenry have the confidence and knowledge to hold public and private officials to account and in which leaders hold themselves to high ethical standards and act with integrity. This South Africa has a resilient anti-corruption system in which anti-corruption agencies have the resources, credibility and powers to investigate corruption and their investigations are acted upon”. The PSC has noted a significant improvement on the reporting of cases of alleged corruption to the NACH in the 2017/2018 financial year by members of the public. The state of readiness by whistleblowers to report allegations of corruption to the NACH could be attributed to the level of commitment by the PSC to improve the reporting mechanism and the message of zero tolerance to corruption.

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