1. Presentation to Portfolio Committee on Justice and Constitutional Development 7 April 2005

2. SPECIAL INVESTIGATING UNIT SIU is taking off SIU has more than tripled in size in 3 years: 67 in August 2001, to 207 in April 2005 Sources of growth 30 from vacancies in 2001/02 70 staff from big increase in budget from R21.5 (2001/02) to R37.2 in (2004/05) 30 from Departments funding SIU

3. SPECIAL INVESTIGATING UNIT Increase in staff past 4 years

4. SPECIAL INVESTIGATING UNIT Estimated SIU growth in 2005/06 2005/06 – will have an even more dramatic increase from 200 to about 500 Sources: 10 staff from R5m increase in budget 290 staff from Departments funding SIU DOT: 75 (mostly recruited already) DSD: 178

5. SPECIAL INVESTIGATING UNIT Projected increase in staff – next 2 years

6. SPECIAL INVESTIGATING UNIT Major investigations with Depts DCS – R6m (40 people) Dept of Transport – R16.8m (75 people) Dept of Local Govt in Eastern Cape – R6m (17 people) Dept of Social Dev - R22m (17 people)

7. SPECIAL INVESTIGATING UNIT New SIU Logo New logo during March 2005 To give SIU a more SA feel Establish an identity that is more distinctive – avoid confusion with other agencies involved in anti- corruption work To make public more aware of anti-corruption work being done by government

8. SPECIAL INVESTIGATING UNIT Introduction SIU is an independent, statutory body reporting to the President and Parliament. Created in terms of the Special Investigating Units and Special Tribunals Act, 1996 First SIU established by President Mandela in 1997 headed by former judge Heath Judge Heath resigned in June 2001 after a Constitutional Court finding that a judge was not able to head an investigating unit The SIU then formally ceased to exist President Mbeki established a new SIU by Proclamation R118 on 31 July 2001

9. SPECIAL INVESTIGATING UNIT Role of the SIU The President refers cases to the SIU by proclamation The major function of the SIU is to investigate corruption and maladministration, and to take civil legal action to correct any wrongdoing Thus the SIU can, for example, obtain court orders: to compel persons to pay back any wrongful benefit they received to cancel contracts when the proper procedures were not followed to stop transactions or other actions that were not properly authorised

10. SPECIAL INVESTIGATING UNIT The focus of the SIU is the public sector, but it also deals with private sector accomplices It can also investigate private sector matters that cause substantial harm to the interests of the public SIU does not have powers of arrest – where criminal wrongdoing, work with SAPS, DSO and NPA Role of the SIU (cont)

11. SPECIAL INVESTIGATING UNIT Corruption in South Africa Bad perceptions of corruption, although improved over last few years Large amount of small corruption ISS victim survey found that 5.6% of public are victims of extorted bribes (2 nd worst crime) Affects people or those they know, but often little seen to be done Gap is the capacity to deal with those areas where small and medium size corruption is prevalent

12. SPECIAL INVESTIGATING UNIT Vision To build a unit that helps to make a real difference to the fight against corruption To develop a strong working relationship with departments to assist them in dealing effectively with corruption To focus especially on building greater capacity to deal with small and medium size cases of corruption that are often not being dealt with adequately by the system at the moment

13. SPECIAL INVESTIGATING UNIT Vision: To provide one-stop service Many departments that are committed to fight corruption are frustrated at having to deal with many processes when wrongdoing is uncovered: AG or SCOPA findings Forensic accountants or internal investigations Disciplinary processes State attorney for recovery (or AFU) Police for criminal investigation Prosecution for criminal prosecution Devise and implement improvements to systems

14. SPECIAL INVESTIGATING UNIT SIU tries to provide a one-stop service to departments Do a complete multi-disciplinary investigation with law enforcement powers Do civil recovery, eg set aside contracts or claim from pensions of officials guilty of causing losses Prepare disciplinary inquiries and testify Prepare court ready docket for SAPS Assist in speeding up prosecution and even assist with prosecution Provide advice on systemic improvements One-stop service (cont.)

15. SPECIAL INVESTIGATING UNIT Advantages of SIU Objectivity of the investigation – especially when no wrongdoing can be proved Departments working with SIU demonstrate public commitment to fighting corruption Cheaper than private sector Has most law enforcement powers, esp power to interrogate under oath Often recover enough to cover cost of investigation Can get going faster than internal units Builds the anti-corruption capacity in the state

16. SPECIAL INVESTIGATING UNIT Progress 2004/05 Developed a Balanced Scorecard as a strategy implementation tool for the SIU Monitors implementation of overall SIU strategy and specific objectives Have developed BSC for all senior managers which will form basis of their future performance agreements

17. SPECIAL INVESTIGATING UNIT To ensure continued support by government for our work DPSA anti-corruption strategy recognises SIU as a vital part of government strategy Best way is by delivering an excellent service SIU is inundated by requests departments who are prepared to pay the SIU for its investigations From R0.5m initially to about R100m in 2006/07 1. To ensure government support

18. SPECIAL INVESTIGATING UNIT 2. Improve co-operation with partners in our environment Major partners are SAPS, DSO, NPA, AFU, Auditor- General Good relationships with partners vital to deliver a one-stop service Try to build win-win relationship – ensure that partners benefit from the relationship with SIU Engage with partners regularly at operational and strategic levels to ensure good cooperation

19. SPECIAL INVESTIGATING UNIT 3. Increasing the number of Departments using SIU services To grow and achieve larger anti-corruption capacity Increase SIU capacity to manage big investigations

20. SPECIAL INVESTIGATING UNIT 4. To provide services at a competitive rate + minimise overhead expenditure & To achieve a high level of satisfaction with existing clients Doing work to the satisfaction of Departments is vital to sustain future work Have to operate more like a business with low costs Vital as SIU is essentially competing against private sector forensic accounting firms

21. SPECIAL INVESTIGATING UNIT 5. To attract donor funds Essential for additional funds required for training, furniture, security, upgrading IT, etc Also helps to keep overheads low while growing rapidly Funding from USA, UK and Denmark for logistical, training and communications needs

22. SPECIAL INVESTIGATING UNIT 6. Position the organisation in the public eye & Develop distinctive identity Helps to create awareness of SIU services Increases morale of staff Funding support from Denmark

23. SPECIAL INVESTIGATING UNIT 7. Excellent corporate services Good quality CS vital to enable SIU to perform HR – to create capacity rapidly IT – to improve infrastructure and productivity Fin and admin – to ensure services to a growing SIU – want to measure turnaround times Will need to make serious assessment of capacity to cope with growth – HO and regions New organisation structure to be developed and implemented to accommodate growth

24. SPECIAL INVESTIGATING UNIT 8. Improved internal communication Has been large challenge with growth Becomes impossible to use our traditional, personal ways of communication Appointed Unit Secretary (Simon Meyer) to lead the development of branding and communication generally Appointing additional communications person to increase capacity

25. SPECIAL INVESTIGATING UNIT 9. Short term legal changes Replacing “justiciable civil disputes” with “civil proceedings”- to stop failure to oppose being the best defence Securing a right to institute civil proceedings (locus standi) for SIU – to overcome the effect of certain High Court judgments Formal statutory empowerment to second members An amendment of the definition of “public money”

26. SPECIAL INVESTIGATING UNIT Medium term legal changes Supplement current referral procedure that requires a proclamation to speed up process Allow Head under certain circumstances to declare an investigation, or To authorise preliminary investigations in order to make informed decisions regarding declared investigations To specify that litigation is by way of application (instead of action) even when disputes are foreseen To provide for certain statutory causes of action in corruption-related matters.

27. SPECIAL INVESTIGATING UNIT 10. Establish a national presence Established: Pretoria (HO), East London, Durban, Cape Town, Nelspruit, Mthatha Planning: Bloemfontein, Polokwane, NWP? Important to deliver proper service to Depts Also to remain in contact and generate more work Better for productivity – less travel Lead to many challenges – incl internal integrity

28. SPECIAL INVESTIGATING UNIT 11. Attract and retain skilled staff Competitive salaries are important – need to relook with growth – esp in parts of CS Maintain attractive work environment Need to ensure career paths and opportunities Job satisfaction is important – helps to compete against higher private sector salaries

29. SPECIAL INVESTIGATING UNIT 12. Employment equity Managers - had been real crisis, but progress Designated groups from 13% to 49% Black staff from 7% to 35% Women: 7% to 24% Africans – 7% to 14% - need more action Potential Leaders Program and trainees program vital to redress

30. SPECIAL INVESTIGATING UNIT All staffManagers Designated groups73%49% Black staff55%35% African37%14% Women40%24% Employment equity

31. SPECIAL INVESTIGATING UNIT 13. Enhance skills With massive growth, it is not viable to recruit only experienced detectives from SAPS Set up training division to develop learning culture PDP (Personal Development Program) – perform proper skills assessment leading to targeted training All staff have been assessed and training is being provided New recruits program for investigators – to increase pool of skills Provide opportunities for designated groups – 34 of 38 Potential Leaders Program to fast-track development of staff with potential to become managers – 4 identified (all designated groups)

32. SPECIAL INVESTIGATING UNIT 14. Internal integrity Developed intensive integrity vetting process Ongoing process – not just initial security clearance Increase capacity from 1 to 3 persons Remains big challenge with rapid growth and decentralisation 8 applicants disqualified in 2004 May even assist departments to screen

33. SPECIAL INVESTIGATING UNIT Overall results 2004/05

34. SPECIAL INVESTIGATING UNIT Litigation to recover or prevent losses Performance Measures 2003/042004/052005/06 TargetActualTargetActual (est) Target Savings (incl preventions) Cash recoveries R70m R50m R372,8m R 13,7m R500m R 30m R380,5m R 23,1m R1 000m R 40m TotalsR120mR386,5mR530mR403.5R1 040m

35. SPECIAL INVESTIGATING UNIT Performance Measures 2003/042004/052005/06 TargetActualTargetActualTarget Evidence prepared for use in civil litigation Evidence prepared for use in criminal prosecutions Evidence prepared for use in disciplinary proceedings Evidence prepared for use in other remedial action 100 200 300 3000 165 52 114 10000 40 200 330 5000 45 165 207 0 40 800 660 50 000 Investigation of corruption and maladministration

36. SPECIAL INVESTIGATING UNIT Verification report detail Cash Recoveries (incl. cash recovered by third parties) 2004/2005 Unaudited 2003/2004 Actual Total Notable cases: DCS DoH ECLG Umanyano Transport State Attorney R23,1m R13,8m R 1,7m R 2,1m R 2,0m R13,7m R7,6m R1,4m

37. SPECIAL INVESTIGATING UNIT Correctional Services Working with Depts have yielded excellent results Very successful investigation with DCS, in third year DCS is paying large part of cost of 40 full time staff 103 496 prisoners and16 927 correctional officers interviewed 8091 complaints attended to

38. SPECIAL INVESTIGATING UNIT Successes in DCS from 2002 Cash recoveries – R30,8m Savings/preventions – about R1 billion Mainly from Medical Aid – working with Fund, DSO, DCS Referred for crim investigation – 132 members, 25 doctors Arrests 24 members, 9 doctors Convictions 5 members, 1 doctor Referred disciplinary actions – 175, pending 66 Dismissals 10, warnings 95, acquit/resign/withdrawn 4

39. SPECIAL INVESTIGATING UNIT Budget Details 2005/06 Projected 2004/05 Unaudited 2003/04 Audited 2002/03 Audited Income - Government grants - Depart funding (est) - Donor funding - Other Expenditure R110,3m R44,3m R60,0m R 2,0m R 4,0m R110,3m R53,7m R37,2m R13,5m R 1,0m R 2,0m R52,6m R40,2m R25,5m R12,3m R 0,6m R 1,8m R41,5m R26,3m R22,9m R 2,9m R 0,0m R 0,5m R30,0m

40. SPECIAL INVESTIGATING UNIT Administration Income has doubled R26m to R53m in 2 years In 2005/06 income and spending will double to over R110m with DSD and DOT funding Will pose massive challenge to HR to recruit, service and develop staff And to maintain our excellent administration and financial controls – fully PFMA compliant Good use of information technology

41. SPECIAL INVESTIGATING UNIT Major challenges Major challenge is to consolidate the gains in the coming year and focus on ensuring that we continue to provide a proper service to Depts Evaluate our organisational structure, support services for a much larger organisation Improving representivity and managing diversity Improved internal communication

42. SPECIAL INVESTIGATING UNIT Major challenges Management of massive projects DSD, DOT Becoming productive fast Legislative amendments plays key role in improved delivery of the SIU