1. PRESENTATION ON THE FINANCIAL MISCONDUCT CASES ( DSD)
28 FEBRUARY 2017

2. FINANCIAL MISCONDUCT CASES 2014/2015
TYPE OF EXPENDITURE
NUMBER OF CASES RECEIVED
AMOUNT R
NUMBER OF CASES FINALISED CASES
TOTAL CASES REMAINING
IRREGULAR CASES
DSD 86 77 * 9
SASSA 6
*included in this amount is expenditure of R incorrectly classified as Irregular Expenditure and was regularized by the loss control committee.
FRUITLESS AND WASTEFUL CASES 20 18 2

3. Breakdown of Financial Misconduct cases not finalized during 2014/2015
Irregular expenditure (R )
1 case for R (prior approval not obtained from delegated official to travel business class abroad for 2 officials)
1 case for R ( prior approval not obtained to fly business class for local destination)
2 cases for R (prior approval for additional funds to host events not obtained)
5 case for R (SCM process not followed to appoint catering services)
Fruitless and Wasteful Expenditure (R )
2 cases for R for no-show (training and accommodation).

4. FINANCIAL MISCONDUCT CASES 2015/2016
TYPE OF EXPENDITURE
NUMBER OF CASES RECEIVED
AMOUNT R
NUMBER OF CASES FINALISED CASES
TOTAL CASES REMAINING
IRREGULAR CASES
DSD
126
115 * 11
SASSA 2
*included in this amount is expenditure of R incorrectly classified as Irregular Expenditure and was regularized by the Loss Control Committee.
FRUITLESS AND WASTEFUL CASES 15 10 5

5. Breakdown of Financial Misconduct cases not finalized during 2015/2016
Irregular expenditure (R )
1 case for R for forklifts purchased. Case opened with SAPS for theft as Service provider removed the goods from the property
4 cases for R for accommodation. SCM process not followed.
1 case for R for promotional material. SCM process not followed.
3 cases for R for catering. SCM process not followed.
Fruitless and Wasteful Expenditure (R )
1 case for R relating abuse of cell phone
1 case for R relating to possible cover quoting.
3 cases for R for Hotel no-show

6. Reasons for delays in finalizing outstanding cases
Further investigation and advise were sought for the above cases from the following:
South African Police Services
Legal Services
Labour Relations
Internal Audit
Engaging with the service providers to determine if cancellations were given in advance to avoid the charge for no-show.

7. Progress on Strategies to reduce Financial Misconduct cases
Loss Control Committee has been reviewed and reconstituted with additional members to deal speedily with all cases.
The Loss Control Committee met on 3 consecutive months (November, December and January 2017) to adjudicate cases and made recommendations to the DG for consideration.
To-date 192 Cases of Irregular Expenditure totalling R have been considered and approved by the DG following the meetings.
28 cases of Fruitless and Wasteful Expenditure totalling R have also been and considered and finalised for the same period by the DG .
Disciplinary action were taken against implicated employees (written and final written warnings)

8. Planned Actions
Scheduled monthly Loss Control meeting to finalize all outstanding cases
All financial (SCM included) policies and delegations will be revised taking in consideration latest Treasury circulars and transversal agreements
With effect from 1 April 2017
All Governance structures (risk and audit committees; bid adjudication and evaluation committees; ethics) will be reconstituted
Refresher training to be provided to all governance structures
Code of Ethics and financial declarations will be made compulsory for all employees
Regular testing and review of key internal controls to identify weaknesses and take corrective action where necessary

9. 30 May 2018
THANK YOU
Budget Committee