Fraud Awareness and Preventative Framework

MEC Maureen Modiselle

The African approach to law

• Legal dilemmas are approached and applied according to historical and legal precedents, but...

• Matters of law are not the domain of a few legal experts

• The legal solution may engage the whole community

• Each person in the community can have a decisive role in the satisfactory resolution of the matter

The NWPG’s approach to fraud

• Relevant Acts, regulations and procedures are in place to implement the law, but…

• Prevention is better than cure

• Every person in the community can play a decisive role to ensure that budgeted funds are spent where they are intended

It’s YOUR budget; become a player

This campaign is founded on the principle that every citizen

in the North West Province can do their part to stop the wastage,

poor administration, fraud, theft and corruption

that eat away at the budgeted funds

Goals of the campaign

Create awareness

Training in moral and ethical conduct

Educating (controls, procedures and Acts)

Creating Awareness

Characterisation of responses to fraud and corruption

Lizz, the spectator who doesn’t get involved On-the-take Jake,

the manipulator

Humphrey,the critic who

offers no solutionsKelebogile

The “Player”

Training

• Teaching what constitutes a “fraud” or impropriety

• Encouraging professional ethics and integrity

• Familiarising everyone with the type of fraud that can occur in their area of responsibility

• Teaching fraud detection and response skills

Educating

• Wide distribution of Regulatory framework in an easy-to-read format

• Informing what platforms/bodies exist to manage the prevention, detection and prosecution of fraud and corruption

Components at risk

• Extensive exercise in all departments of the North West Provincial Administration

• In conjunction with Provincial Auditor General’s office

• Identification of the components and activities considered to be most at risk in terms of fraud

Fraud identification procedure

Possible irregularities and wasteful

practices identified

Try to resolve by line management

As a last resort, the player would blow the whistle on the

perpetrator

Report to management or the Office of the

Premier

Civil Recovery by State Attorney

Disciplinary Enquiry by Misconduct Unit at the Office of the Premier

Criminal investigation by SAPS

Confidentiality and protection ensured at all times

Office of Premier to investigate allegation

Feedback to all role players

Protected Disclosures Act, 26 of 2002

Fraud Prevention Strategies

National Public Sector Anti-Corruption

Strategy

North West Province Fraud Awareness

Strategy

North West Provincial Fraud Prevention

Framework

Fraud Prevention Plans (prescribed by

Treasury Regulations)

Common denominator:Awareness

TrainingEducation

Fraud Prevention platforms

National Anti-Corruption Forum

Special Investigations

The Office of the National Director of Public Prosecution (NDPP)

National Prosecuting Authority (NPA)

Platforms and bodies that manageprevention,detection and prosecution of fraud Asset Forfeiture Unit (AFU)

Special Investigating Unit

Potential Liability

• Vicarious liability

• Statutory offences relating to dishonesty– Prevention and Combating of Corrupt Activities Act, 12 of 2004– Financial Intelligence Centre Act, 2001

• Acts, regulations and policies of general application– NW Delegation of Power Act, 20 of 1994– NW Commission Act, 18 of 1994– Promotion of Access to Information and Provision

of Communicated Information Act, 2 of 2000– Regulation of Interception of Communications

Act, 70 of 2002– Promotion of Administrative Justice Act, 3 of 2000