FORENSIC / KPMG ETHICS LINE

AUDIT / TAX / ADVISORY

KPMG Ethics Line

An explanation of the CANSA hotline facility

2 © 2014 KPMG Services (Pty) Limited, a South African company and a member firm of the KPMG network of

independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

A fraud hotline is a simple, yet highly effective management tool designed to enable concerned employees in an organisation, as well as third parties associated with an organisation, to report fraudulent, corrupt and unethical practices in the workplace.

Description of a fraud hotline

3 © 2014 KPMG Services (Pty) Limited, a South African company and a member firm of the KPMG network of

independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

11%

20%

69%

Internal

External

Collusion between internal and external

Fraudster’s relationship to the organisation that suffered damages:

Source: KPMG Forensic, - Profile of a Fraudster Survey

89% have an element of internal involvement

The risk of fraud and misconduct from within

4 © 2014 KPMG Services (Pty) Limited, a South African company and a member firm of the KPMG network of

independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Ethical Principles

Perform your duties with honesty and integrity

Treat people with respect, fairness and courtesy

Accept accountability for your actions and decisions

Behave in a way which is above reproach

Comply with the rules, procedures and regulations of the

company, and laws of the country

5 © 2014 KPMG Services (Pty) Limited, a South African company and a member firm of the KPMG network of

independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Ethical Principles

Use company information for the purpose for which it is

intended

Do not misuse assets/property of the company, its

customers or suppliers

Declare conflicts of interest or potential conflicts of

interests

Refuse any gift that could be regarded as exerting undue

influence

6 © 2014 KPMG Services (Pty) Limited, a South African company and a member firm of the KPMG network of

independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Why did CANSA implement a whistle-blowing line?

With a whistle-blowing line CANSA will identify more

instances of fraud or misconduct

In the current economic climate employees are more prone to committing acts of

fraud

Because CANSA is committed to maintaining a culture of ethical

compliance As 89% percent of fraud is

perpetrated internally

To protect CANSA’s service offering.

To protect the anonymity of employees wanting to blow

the whistle

As required by the King Code of Corporate Governance 2009

Justification for a whistle-blowing facility?

7 © 2014 KPMG Services (Pty) Limited, a South African company and a member firm of the KPMG network of

independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Features of the KPMG Ethics Line

KPMG Ethics Line is an accredited external hotline service

provider (EthicSA)

The KPMG Ethics Line call centre is manned 24 hours a day,

365 days a year

Calls are fielded by experienced call centre agents versed in all

11 official South African languages, as well as French, Dutch,

German, and Portuguese

All reported information is immediately captured onto a call-

sheet and transmitted directly to a designated person

appointed by your organisation

Anonymity is encouraged – confidentiality is paramount

8 © 2014 KPMG Services (Pty) Limited, a South African company and a member firm of the KPMG network of

independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

The KPMG Ethics Line Process

Caller lodge report

Caller communication (at no cost to caller)

Telephone Fax Post E-mail Web

Voice Document Electronic

CALL CENTRE

Record & log Log Log

Document CANSA

Feedback (if required) Investigation

9 © 2014 KPMG Services (Pty) Limited, a South African company and a member firm of the KPMG network of

independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

KPMG compile and report to CANSA

Step 3

ALTERNATIVELY: • KPMG Hotfax – 0800 200 796 • KPMG Hotmail – fraud@kpmg.co.za • KPMG Post – KPMG Hotpost, at BNT 371, PO Box 14671, Sinoville 0129 • http://www.thornhill.co.za/kpmgethicslinereport

Call 0800 20 44 28

Step 1

Make your confidential and anonymous disclosure

Step 2

3 easy steps to report fraud or unethical

behaviour

10 © 2014 KPMG Services (Pty) Limited, a South African company and a member firm of the KPMG network of

independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Step 1: Dial 0800 20 44 28 toll-free from any Telkom landline phone

Step 2: Provide full details in respect to the violation. Such details should

include:

Who is involved or doing what?

What has happened?

How was it done and how often?

Where is it done?

When was the incident observed?

Values involved – monetary value

Step 3: You will be given a secret reference number by the operator – keep this

number confidential as you will need this number if you want to make a follow-up

call (call at a later date to add to the report) or feedback call (call at a later date

to obtain feedback

3 easy steps to report fraud or unethical

behaviour

11 © 2014 KPMG Services (Pty) Limited, a South African company and a member firm of the KPMG network of

independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

What to report to the hotline?

Fraud Sexual

Harassment

Corruption

Other

criminal

offences

Dishonesty

Financial

Statement Fraud

Damage to

environment

Theft

Discrimination

Unethical

behaviour/

misconduct

Health and

Safety

Violations

12 © 2014 KPMG Services (Pty) Limited, a South African company and a member firm of the KPMG network of

independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

What not to report?

Employment grievances

Employment complaints

Petty arguments amongst staff

Personality clashes

13 © 2014 KPMG Services (Pty) Limited, a South African company and a member firm of the KPMG network of

independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Checklist before you call?

In which division/department did the incident take place?

Where specifically did it happen?

What is the nature of the incident?

Date and time the incident took place?

How long has this been going on?

How often does this happen?

Number of people involved and names?

Does anybody else know about it?

Do you have any proof?

Are there any witnesses?

14 © 2014 KPMG Services (Pty) Limited, a South African company and a member firm of the KPMG network of

independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Questions?

Q & A