Special Investigating Unit
Presention to Parliament 10 June 2003
Willie Hofmeyr Head
LEGAL STATUSLEGAL STATUS
The SIU is a Schedule 3 Public EntityReports to Parliament and the President
VISION & MISSIONVISION & 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
Advantages of SIUAdvantages 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
Effective and economic Effective and economic investigationsinvestigations
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
(Continued)(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.
Building PartnershipsBuilding PartnershipsIt is vital to work with government to fight
corruption effectivelyFocus 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
OVERVIEWOVERVIEW 2002/2003 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.
1. Creating certainty about 1. Creating certainty about the future of the SIUthe future of the SIU
It is no longer affecting staff morale in the SIU
Although there is not long term certainty
2. New cases for SIU2. 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
3. Increasing Capacity 3. Increasing Capacity Investigative capacity has been
substantially increased : Permanent staff 40% increase - 74 to 103Total staff 58% increase - 85 to 133
Filled old vacanciesBut mainly because of additional funding
received from other state institutions
Important way of building capacity has been to build to develop an effective training program
Increase skills of own staffBut also take responsibility for training own
recruits rather than “poaching”
4. Improving representivity 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
5. Ensuring competitive 5. Ensuring competitive salariessalaries
Salary grading performed by external consultants to align SIU salaries with equivalent structures in the public sector
Likely to be implemented during 2003/2004Confident 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
6. Promoting greater 6. Promoting greater efficiencyefficiency
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
7. Legal changes to 7. Legal changes to improve effectivenessimprove 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
8. Establishing a national 8. Establishing a national presencepresence
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
9. Improved cooperation 9. Improved cooperation with law enforcementwith 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
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
10. Building partnerships 10. Building partnerships with governmentwith government
An effective partnership has been established with DCS – 25 dedicated SIU members
Limpopo Dept TransportKZN Department of Housing
Notable casesNotable casesNontenja – 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
Notable Cases (cont.)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 10 000 licences issued irregularly and 1 400 already physically cancelled
Working with DoT
DCS investigationDCS 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
Housing investigationHousing investigationHousing 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
Univ Natal Law Clinic to assist small victims
42 866 sites inspected27 projects completed
Agri-Eco investigationAgri-Eco investigationFinal report about to be issuedMajor asset verification done for the State –
R75 million of assets secured
JACT investigation in JACT investigation in Eastern Cape Eastern Cape
Joint Anti Corruption Task Team in Eastern Cape – with SAPS, NPA
Instrumental in setting up infrastructureSeconded members to assist in criminal
investigationsHave applied for mandate to investigate in
terms of Act 74/1996
Umanyano investigationUmanyano investigationRecovery of assets of the former Transkei
Road Transportation Corporation liquidated in 1996
A number of fixed assets already identified and being recovered
ACHIEVEMENTSACHIEVEMENTS
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
Savings and Preventions
2002/2003
Actual
(Unaudited)
Total
Notatable cases: Agri-Eco asset verification Namaqualand Housing Project
R90,5m
R75,4m
R14,0m
ACHIEVEMENTSACHIEVEMENTS
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
ACHIEVEMENTSACHIEVEMENTS
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
3000
ACHIEVEMENTSACHIEVEMENTS
Notable cases:Department of Correctional ServicesLimpopo Department of Transport KZN Housing conveyancers
Not always possible to quantify impact of SIU
ACHIEVEMENTSACHIEVEMENTS
BUDGET - INCOMEBUDGET - 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
R 0,4m
BUDGET – EXPENDITURE BUDGET – EXPENDITURE
Details
2002/2003
Unaudited
2001/2002
Audited
Expenditure
- 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
Excellent administration and financial controls
PFMA compliantGood use of information technologySerious about training – eg Computer Based
Training
Thank you
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