Zero Tolerance

The Department of Arts & Culture (DAC) adopts “zero tolerance” to fraud and corruption and declares its intention to serve the South African populace without compromising its commitment to DAC’s vision.

Executive Authority’s Pledge
The Executive Authority and Management have taken a stand to fight fraud and corruption both internally and externally.

WHAT IS MANAGEMENT’S RESPONSIBILITY?
DAC has an approved Fraud Prevention Strategy and the key pillars in the fight against fraud and corruption are:

• Prevention by the implementing policies and procedures and the promotion of an acceptable ethical culture.
• Detection through internal controls and the promotion of whistle blowing.
• Investigation of all exceptions to policies and procedures.
• Resolution of all investigations with disciplinary action and improved controls.
• Recovery of any financial loss.

WHAT IS CORRUPTION AND WHAT IS FRAUD?

Corruption is defined by the Prevention and Combating of Corrupt Activities Act (No 12 of 2004) and is summarised as:
If one party (person) gives another party (person) anything of value (defined as gratification, in the Act) with the purpose of influencing them to abuse their power.
Corruption is where:

• Both parties know what is going on
• Both parties are guilty

Fraud is broadly defined as “Deliberately deceiving or misleading someone to cause them financial loss or other harm”.
Fraud is where:

• One party is deceived.
• There is a perpetrator (fraudster) and a victim (the person or department being defrauded).

GLOSSARY OF TERMS RELATED TO CORRUPTION AND FRAUD

Extortion (fraud) –  where someone intimidates or threatens you to gain some advantage from you. You must lay a charge with the SA Police Service otherwise you will be perceived to be a willing participant.

Facilitation payments (corruption) – popular in the supply chain process and in financial administration where someone asks you to speed up the process. Both the giver and the recipient are involved.

Asset misappropriation (fraud) –
includes:

• Theft of cash.
• Fraudulent disbursements.
• Theft and misuse through assets requisitions and transfers.

Fraudulent statements (fraud) – includes

• On the financial side includes fictitious revenue or improper disclosure.
• On the non-financial side includes falsified employments credentials and abuse of privileged information.

WHAT IS YOUR RESPONSIBILITY AS AN EMPLOYEE?

In terms of the Code of Conduct of the Public Service, Chapter 2 of the Public Service Regulations, you are prohibited from using your official position to get benefits and favours.

YOU NEED TO KNOW the policies within DAC, what happens in your area of responsibility and what the law prescribes.

WHERE DO YOU REPORT FRAUD AND CORRUPTION?

INTERNAL REPORTING

• Chief Risk Officer
• Contact your Accounting Officer
• Contact Internal Audit or the Chairman of the Audit Committee
• Department Security Officer
• If in doubt send an email to: erm@dac.gov.za or call  012-441-3097.

EXTERNAL REPORTING

• The Presidential Hotline:17737
• The Public Service Commission

National anti-fraud hotline:
 0800 701 701

• SMS: 39772
• Email:
  publicservicecorruptionhotline.org
• Contact the office of the Auditor General
• Contact the Public Protector

PROTECTION OF THE WHISTLE BLOWER!

The Protected Disclosures Act No 26 of 2000 is intended to protect all employees who make reports in good faith.

BLOW THE WHISTLE ON FRAUD AND CORRUPTION and PROMOTE ZERO TOLERANCE ON FRAUD.

WHY SHOULD OUR SERVICE PROVIDERS CARE ABOUT FRAUD AND CORRUPTION?

A service provider found guilty of dealing in tender corruption can be listed on the register for tender defaulters at National Treasury. This means that you will be banned from doing business with government for between 5 and 10 years.
This register is also open to the public. 
Example: Corruption with service providers is where a person pays a bribe or requests a bribe to be awarded/to award a contract. The gratification is money or gifts received, entertainment, loans, employment or any other benefit.

If you offer a bribe you are already guilty of corruption!