Department of Cooperative Governance Progress report on the assessment of forensic reports PORTFOLIO COMMITTEE MEETING 23 AUGUST 2016 1

Outline of the presentation Purpose Introduction and background Reports assessed per province Objective of the assessment Principles used in the assessment Stakeholders to the assessment Areas emerging from the assessment Cases referred to agencies Feedback from agencies Other measures being considered to accelerate implementation Conclusion Recommendation 2

Purpose To provide the Portfolio Committee with the progress on the implementation of recommendations of forensic reports commissioned by provinces and municipalities. 3

Introduction There are Forensic reports commissioned by municipalities to investigate various irregularities including but not limited to contravention of legislation, regulations, municipal policies and other prescripts ranging from procurement and human resource management and any related municipal functions. Most of the forensic reports made recommendations that certain remedial or other corrective measures be taken. However, some of the recommendations made were not implemented by municipalities The Minister took a decision that all reports are submitted to the Department. 4

Background The Department requested Provinces and municipalities to submit copies of forensic reports commissioned by municipalities since April 2009 for assessment. This request was made in October 2014. 119 copies of forensic reports have since been received from Provinces and municipalities. Out of the 119 copies received, 109 have been assessed. The 10 other reports submitted were not really forensic reports that could qualify for assessment. The assessment of these reports was conducted in line with the Good Governance pillar of the B2B. 5

Forensic reports assessed per province Western Cape 16 TOTAL = 109 Province Number of reports Eastern Cape 34 Free State 05 Gauteng 02 KZN 19 Limpopo 11 Mpumalanga 15 Northern Cape 03 North West 04

What did the assessment sought to achieve? Assist the Department to facilitate criminal, civil and disciplinary actions emanating from forensic reports recommendations. Assess the extent to which Provinces and municipalities are implementing recommendations emanating from forensic reports. Identify other areas of corruption and related offences that require focus attention. 7

Principles of the Assessment The principles of the assessment were to identify: Recommendation with asset forfeiture potential. Reports where criminal and civil matters could be pursued with the assistance of law enforcement agencies. Reports where internal disciplinary processes can be pursued by municipalities and monitor how municipalities are implementing Other areas of corruption and related offences that require focused attention 8

Stakeholders who participated in the assessment The assessment was conducted by the Department with the assistance of law enforcement agencies and stakeholders listed below: Directorate for Priority Crime Investigation (DPCI) Asset Forfeiture Unit (AFU) Special Investigating Unit (SIU) National Treasury Office of the State Attorney 9

Areas that emerged from the assessment Irregular, wasteful and unauthorised expenditure Procurement irregularities Appointment Irregularities Theft of cash Fraud, corruption and maladministration 10

Cases referred to law enforcements agencies 52 reports have been referred to law enforcement agencies as follows: 11 forensic reports were referred to the SIU for further assessment to determine if the cases meet the requirements to be investigated under the Presidential proclamation. The AFU has identified that there is potential for assets forfeiture in 18 forensic reports. 23 of the forensic reports were referred to the DPCI for further investigations. One case still to be assessed as it was received towards the end of the financial year The remaining 57 have been referred back to MECs requesting progress regarding the implementation of recommendations 11

Feedback on cases referred to law enforcements agencies Below is the feedback regarding the cases referred to agencies: Out of the 11 forensic reports referred to the SIU, 3 are on motivation stage, while 3 are on assessment stage. The SIU concluded that the other 5 forensic reports are being dealt with by other law enforcement agencies. Out of the 23 forensic reports referred to the DPCI, they provided progress on 4 of the forensic reports, 2 of the cases are in court, while 2 are under investigations. Out of the 18 forensic reports referred to the AFU, they provided progress report on 6 matters. We await feedback from various provinces regarding how the 56 cases are being implemented 12

Other measures being looked at to accelerate responding to some of the recommendation The Department is engaging with the National Prosecuting Authority (NPA) with a view to request them to assign a dedicated team of prosecutors to focus specifically on cases of corruption and related offences in municipalities. We are also engaging with the SIU to second investigators to the department to assist with accelerating some of the cases. 13

Conclusion We continue to collaborate with law enforcement agencies, Provinces and municipalities to ensure the success of this project. The focus will also be in obtaining Council resolutions with regard to the implementation of the recommendations Given the amount of time that has lapsed since some of the forensic reports were commissioned, some of the matters have prescribed, while in some instances it is difficult to obtain supporting evidence. 14

Recommendation It is recommended that the Portfolio Committee notes: The progress with regard to implementation of recommendations emanating from forensic reports. 15

Thank you. 16