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