2. LEGAL STATUS The SIU is a Schedule 3 Public Entity
Reports to Parliament and the President

3. VISION & MISSION To be a world-class anti-corruption agency
An anti-corruption agency that performs high quality investigations of corruption and takes legal action to prevent and recover losses of state assets in the public interest

4. Advantages of SIU
Unique role in that only institution that uses the civil law to recover money
Can do whole process – from investigation to final litigation
Added advantage that need not prove case beyond a reasonable doubt, but only on a balance of probabilities
Also, unlike criminal fraud where state has to prove subjective intent
In civil law a negligent or even innocent misrepresentation is sufficient

5. Effective and economic investigations
The SIU provides forensic investigation services at no additional cost to government
Can match almost all private sector services at about a third of the cost
Can also provide a proper completed investigation since it has investigative powers, members can take proper affidavits
After private investigations the report usually need to be backed by proper evidence leading to delays

6. (Continued)
Also assist with the investigation and prosecution of the criminal matter alleviating the resource constraints in the criminal justice system
The Special Tribunal ensures that litigation proceedings are swift as opposed to the lengthy delays that may occur in other courts.

7. Building Partnerships
It is vital to work with government to fight corruption effectively
Focus on building good working relationships with those state institutions that need ongoing investigations
Sensible to spend some of the funds going to the private sector on working with the SIU and building its capacity
i.e. build capacity in the state that will be permanently available to fight corruption

8. OVERVIEW 2002/2003
In last year’s annual report reference was made to a 10 point strategy to put the SIU “back in business” as one of the premier corruption fighting institutions in our country. Significant progress has been made in implementing this strategy.

9. 1. Creating certainty about the future of the SIU
It is no longer affecting staff morale in the SIU
Although there is not long term certainty

10. 2. New cases for SIU
There is now a steady flow of work to the SIU, esp through DCS
8 new investigations received during the year
Still undue delays in receiving proclamations

11. 3. Increasing Capacity
Investigative capacity has been substantially increased :
Permanent staff 40% increase - 74 to 103
Total staff % increase - 85 to 133
Filled old vacancies
But mainly because of additional funding received from other state institutions

12. Important way of building capacity has been to build to develop an effective training program
Increase skills of own staff
But also take responsibility for training own recruits rather than “poaching”

13. 4. Improving representivity
Employment equity plan is in place plus employment equity forum  
A major focus in recruitment is to improve representivity, especially at a management level
Challenge in financial investigations, but achieved good progress
67% of all permanent staff are from designated groups - 43% are black
If contract workers are included, 48% of unit members are black

14. 5. Ensuring competitive salaries
Salary grading performed by external consultants to align SIU salaries with equivalent structures in the public sector 
Likely to be implemented during 2003/2004
Confident that this will allow us retain our present staff by offering them a proper career path
And allow us to continue to recruit skilled new staff

15. 6. Promoting greater efficiency
A true project management approach adopted
Successful in introducing clearer time frames and greater accountability
Comparison done with best practice in the market with the aim of optimising productivity

16. 7. Legal changes to improve effectiveness
Effectiveness of SIU severely affected by a number of judgements
In addition, the present referral and litigation processes are ineffective
Adv Wim Trengove SC briefed for advice on possible amendments, as well as on related constitutional issues
Legislative amendments to be tabled in Parliament

17. 8. Establishing a national presence
Previously SIU based in East London with teams focussed on each province and a satellite office in Umtata
Decided that it would be more effective to establish a national presence
Pretoria office now fully established
Durban office experienced significant growth
Satellite offices in Mpumalanga and Cape Town to be established during 2003/2004

18. 9. Improved cooperation with law enforcement
A special effort has been made to improve cooperation with other law enforcement agencies to ensure effective criminal action where evidence is available indicating a criminal offence
With resource constraints in the criminal justice system, not sufficient simply to refer matters to the police or NPA since there may not always be the capacity to deal with them adequately

19. Made investigators available to assist the police in compiling dockets that are court-ready – eg Nontenja
Cooperated closely with other law enforcement agencies, eg in JACT, DCS investigation, housing investigation
Handed several matters to AFU where their powers more effective – Magistrates case, Nontenja, Maropeng
NDPP is prepared to give delegations to experienced lawyers in the SIU to do the prosecution in cases investigated by the SIU

20. 10. Building partnerships with government
An effective partnership has been established with DCS – 25 dedicated SIU members
Limpopo Dept Transport
KZN Department of Housing

21. Notable cases
Nontenja – Umtata attorney who defrauded state of R19m - Accused sentenced to 20 years imprisonment and asset forfeiture order granted
Witness Protection Program (KZN) - all staff removed - investigation of widespread corruption by officials of the WPP in conjunction with NPS, DSO and SAPS – secret funds were abused, own houses let

22. Notable Cases (cont.)
KZN Tare Weight investigation of fraudulently reduced licence weights of vehicles resulting in losses of millions – a lot of progress made and more than R1 million recovered
Limpopo investigation of all drivers licences issued since 1994 in cooperation with provincial Dept of Transport
Found nearly licences issued irregularly and already physically cancelled
Working with DoT

23. DCS investigation Full-time project team of 25 members
R17m from 6 doctors, incl R7.6 m from Dr Bham
Problems with prison and private pharmacies, petrol cards
Assaults, drugs,
Booking prisoners out
Selling of jobs
Promotions and appointments – nepotism
Agriculture
False qualifications
Irregular parole, remission

24. Housing investigation
Housing Massive investigations of all state subsidies granted in Gauteng, KZN and N Cape – valuable lessons learnt
Included are several conveyances entrusted with housing money, incl TR Mfeka, Mlaba Mkaya Inc, T Mvelase, HVB Makhanya
Discussing a permanent national project with Minister of Housing

25. Univ Natal Law Clinic to assist small victims
sites inspected
27 projects completed

26. Agri-Eco investigation
Final report about to be issued
Major asset verification done for the State – R75 million of assets secured

27. JACT investigation in Eastern Cape
Joint Anti Corruption Task Team in Eastern Cape – with SAPS, NPA
Instrumental in setting up infrastructure
Seconded members to assist in criminal investigations
Have applied for mandate to investigate in terms of Act 74/1996

28. Umanyano investigation
Recovery of assets of the former Transkei Road Transportation Corporation liquidated in 1996
A number of fixed assets already identified and being recovered

29. ACHIEVEMENTS Outputs Performance Measures 2002/2003 Target 2002/2003
Actual
(Unaudited)
2003/2004 Target
Investigation of corruption and prevention of losses to the State
Savings (incl preventions)
Cash
recoveries
R60m
R40m
R90,5m
R37,5m
R70m
R50m
Totals
R100m
R128m
R120m

30. Savings and Preventions
ACHIEVEMENTS
Savings and Preventions
2002/2003
Actual
(Unaudited)
Total
Notatable cases:
Agri-Eco asset verification
Namaqualand Housing Project
R90,5m
R75,4m
R14,0m

31. (incl. cash recovered by third parties)
ACHIEVEMENTS
Cash Recoveries
(incl. cash recovered by third parties)
2002/2003
Actual
(Unaudited)
Total
Notatable cases:
Department of Correctional Services
Ghost Workers – pension funds
R37,5m
R17,0m
R14,0m

32. ACHIEVEMENTS Description 2002/2003 Actual number of cases 2003/2004
Target number of cases
Criminal prosecutions initiated
Criminal prosecutions concluded
Disciplinary proceedings initiated
Disciplinary proceedings concluded
Other remedial action initiated
Other remedial action concluded 13 1
125
unknown
3000
1400
200
300

33. ACHIEVEMENTS Notable cases: Department of Correctional Services
Limpopo Department of Transport
KZN Housing conveyancers
Not always possible to quantify impact of SIU

34. BUDGET - INCOME Details 2002/2003 Unaudited 2001/2002 Audited Income
- Government Grants
- Department of Correctional Services
- Limpopo Department of Transport
R25,5m
R22,9m
R 2,5m
R 0,4m
R21,9m
R21,5m
R 0,0m

35. BUDGET – EXPENDITURE Details 2002/2003 Unaudited 2001/2002 Audited
- Operational salary expenses
- Operating expenses
- Non-operational salary expenses
- Overhead expenses
(incl. Depreciation)
R30,2m
R16,2m
R 8,3m
R 3,1m
R 2,6m
R19,6m
R 9,6m
R 5,1m
R 2,8m
R 2,1m

36. Excellent administration and financial controls
PFMA compliant
Good use of information technology
Serious about training – eg Computer Based Training

37. Thank you