NATIONAL ANTI CORRUPTION

BUSINESS REPORT TO THE PORTFOLIO COMMITTEE

ON PUBLIC ADMINISTRATION

KING II REPORT & CORPORATE

GOVERNANCE LISTED COMPANIES FRAUD BSA QUESTIONAIRE

INTRODUCTION

THE SHORT TERM INSURANCE INDUSTRY

Areas within the sector to be targeted Service Provider Corruption Business to Business Corruption Internal fraud and Corruption by employees Customer fraud Vehicle Salvage Industry

Areas outside the sector to be targeted Licensing and Registration Department SAPS Vehicle Safeguarding Units Illegal import of motor vehicles

Anti Corruption Initiatives introduced to dateCode of Conduct Information Sharing Data Base Insurance Fraudline Protocols Donation of R2 million Rand to Business

Against Crime Operation Prado

LONG TERM INSURERS

Areas within the sector to be targeted Disability Fraud (Individual and Group) Customer Fraud related to funeral benefit claims Fraudulent death claims Funeral Business Retrenchment Cover

Areas outside the sector to be targeted Funeral Parlours/ Mortuaries Syndicates that work across the industries within the

financial services sector

Anti Corruption Initiatives introduced to dateLOA Life and Claims Register Reference Code Insurance Fraudline jointly with the Short Term

Insurers Assistance from the Scorpions

CHAMBER OF MINES

Areas within the sector to be targetedPrecious product theft Illicit gold markets White collar fraud and corruption Copper theft

Anti Corruption Initiatives introduced to date Internal corporate measures External measures Standing Committee on Security Industry and SAPS combined initiativesCollaboration to combat White Collar crime and

fraudCollaboration to combat Copper theft

THE BANKING INSTITUTIONS

Areas within the sector to be targeted In sectors that deal with the awarding of contracts, tenders, purchasing

and credit facilities. Staff fraud Appointments for example valuators, panel members( e.g attorneys

conducting transfers on property Credit application fraud Impersonation fraud Any area that can be exposed to syndicate onslaughts.

Areas outside the sector to be targeted State departments (SAPS, justice, Deeds office, Master of the Supreme

Court, health) Government tender processes Private Sector( any institution that could be awarded contracts)

Anti Corruption Initiatives introduced to dateZero Tolerance PolicyAwareness and Communication Internal Fraud Units South African Fraud Prevention Service Business Against Crime Initiatives

BLACK MANAGEMENT FORUM

Areas within the sector to be targeted Misappropriation of funds by members - funds used for something

other than what they were intended for Business to Business corruption-between service providers and members of staff

Accounting and Auditing practices

Areas outside the sector to be targeted General fronting on Black Economic Empowerment deals (BEE as a

sector) Financial services Local government Government procurement process

Anti Corruption Initiatives introduced to dateB.M.F.Private Sector

RETAIL INDUSTRY

Areas within the sector to be targetedTransportation and warehousing in

appliances and pharmaceuticals.General reluctance by business to admit the

scale of the problemLack of investment in fraud prevention Identity theftDownplaying fraud statistics for fear of

shareholder backlash

Anti Corruption Initiatives introduced to date Code of Conduct for the Consumer Council for South

Africa Annual donations to Business Against Crime Kwa-

Zulu Natal for the past four years – total in excess of R5 million.

Established the Unilever Centre of Ethics and Natal University

The South African Fraud Prevention Service

THE END