Report on Anti-Corruption Forum: briefing by Civil Society, Business and the Public Sector

Meeting report

PUBLIC SERVICE AND ADMINISTRATION PORTFOLIO COMMITTEE
26 March 2003
REPORT ON ANTI-CORRUPTION FORUM: BRIEFING BY CIVIL SOCIETY, BUSINESS AND THE PUBLIC SECTOR

Chairperson: Mr Gomomo (ANC)

Documents handed out:
Institute for Security Studies Anti Corruption Report presentation
Briefing by Institute for Security Studies
South African Insurance Association Anti Corruption Report presentation
Briefing by South African Insurance Association
Public Sector progress report on the implementation of Summit Resolutions
Public Sector Presentation
Resolutions of the National Anti-Corruption Forum (14-15 April 1999)

SUMMARY
The Committee was briefed by business, civil society and the public sector, represented by the South African Insurance Association, Institute for Security Studies, and the Public Service Commission and the Minister of Public Service and Administration, respectively, on the report on the Anti-Corruption Forum. Each speaker highlighted the development of anti-corruption initiatives in their respective sectors. In the discussion that followed issues were brought up about the sensationalist reporting of the media; the pardoning of blacklisted companies and individuals and the power of the Public Service Commission (PSC) to carry out resolutions it makes in its reports.

MINUTES
The presentation was three-pronged, with contributions from Business, represented by Mr Michael Denenga (Legal Advisor: The South African Insurance Association), Civil Society, represented by Mr Hennie Van Vuuren (Institute for Security Studies) and the Public Sector, represented by Minister Geraldine Fraser-Moleketi (Minister of Public Service and Administration).

Introduction by Public Service Commission
Prof Stan Sangweni: Chairman, PSC, made an introductory comment by expressing how content he was with the report that was about to be presented before the Committee. It was a historic day because a great deal of work had gone into the National Anti Corruption Forum and the presentation could thus be likened to introducing a 'makoti'- a new bride.

Presentation by Business sector
Mr Michael Denenga conducted the presentation on behalf of Business. He referred to the King Report II and the concept of corporate governance. The areas within the sector which are to be targeted include service provider corruption, business to business corruption and the vehicle salvage industry. Areas outside the sector which are to be targeted include the illegal import of motor vehicles. Mr Denenga outlined the sector's anti-corruption initiatives within banking institutions, retail institutions, long term insurers and so forth. (Please see the attached presentation and briefing document)

Presentation by Civil Society
Mr Hennie Van Vuuren conducted a presentation on behalf of Civil Society. He outlined some of the activities of organisations which grapple with anti-corruption issues and their relative achievements. He touched on national sectoral and cross-sectoral anti-corruption initiatives and the role played by civil society organisations. He noted that corruption has blighted the reputation of many not for profit organisations. Civil Society can play both a creative role in promoting democracy by educating and socialising citizens into a democratic modus operandi. He mentioned ethics training as an example. Civil society should remain critical and vigilant of the state apparatus lest it abuses its monopoly on power. Organisations can ensure that a state remains accountable to its citizens, in this way sustaining democracy. (Please see attached presentation and briefing)

Presentation by the Public Sector
Minister Geraldine Fraser-Moleketi conducted a presentation on behalf of the Public Sector. On the issue of the relevant legislation, the Minister noted that a new Prevention of Corruption Bill has been developed and should be enacted by late 2003. She also mentioned the Protected Disclosures Act and Administrative Justice Act. She noted the various structures which have been put in place to combat corruption. She also spoke of the implementation and promotion of sound ethical, financial and related management practices.

Discussion
The Chairperson requested that the Committee be involved in the launch of the government report the following week.

Mr MR Sikakane (ANC) brought out the subject of the media and its role in combating corruption. He expressed concern over the issue of sensational reporting, where the journalists' main aim would be to sell newspapers rather than tell a story objectively. He also expressed concern over the fact that some newspapers are based upon certain political ideologies and viewpoints that manifest themselves in the way that cases of corruption are reported.

Mr H Logaat (Board Member, Transparency South Africa) answered that this was an important concern, but government had made attempts to ensure media diversity in the issue of corruption. At present, media went far beyond newspaper reports, and there is now reference to integrated media. This refers to the collective view of media consisting of the Internet, radio, television and newspapers. He gave the example of people accessing Internet sites to gain objective reports on the war on Iraq as an alternative to television stations who can be biased. A balancing effect was needed from all aspects of media. Media had to be accountable to broader society. He confirmed that media, including newspapers, were biased at times and did not follow up on issues. He made the point that there was also quality journalism that gave a good objective view on the issue.

Mr Sikakane addressed the Minster of Public Service and Administration. He expressed concern over the issue of the blacklisting of individuals and companies that are found guilty of corruption. He asked whether they could not rather have a parole option for these individual and companies to allow for their rehabilitation.

Mr LM Kgwele concurred with Mr Sikakane and added that as part of their rehabilitation, blacklisted individuals could be brought into Departments in the capacity of consultants.

Minister Fraser-Moleketi explained that they did not intend to give pardon or parole for companies or individuals that are found guilty of corruption. She said that they wanted to ensure that effective sanctions were in place to deter individuals and companies from performing acts of corruption. She explained that they needed to build a higher level of compliance in society. She mentioned the pardoning of those who did not obtain their new driver's licences as an illustration of her point. She concluded that they would not build the required societal metamorphosis by granting pardon or parole to guilty individuals or companies.

Mr LM Kgwele (ANC) asked for clarify on the statement in the Public Sector report that some provinces had not established corruption hotlines. He knew that some Departments within these provinces actually had their own corruption hotlines. The issue was just that it was not widespread to cover the whole of the province.

Mr van Van der Merwe (NNP) referred to the resolutions and recommendations that were often made by the Public Service Commission (PSC) in their reports. He asked why the Commission did not themselves take action on some of its recommendations.

Prof S Sangweni (Chairman, PSC) answered that in previous meetings with the Portfolio Committee they had tabled the problems they had with regard to the implementation of the recommendations they made in their reports. The PSC did not have the executive authority to carry out these recommendations. In order to carry out the recommendations they required a great deal of co-operation between themselves and the Executive. He noted that the co-operation worked at times, and at times it did not. It was a difficult situation and he hoped that they would find a solution.

Minister Fraser-Moleketi added that collaboration was key in ensuring that the resolutions brought forward by the PSC were actually carried out. She noted that the PSC in actual fact reported to Parliament through this Committee. Therefore, she explained further, the Committee should take more action to ensure that the resolutions proposed by reports are actually realised. Minister Moleketi also stated that some reports of the PSC were also reported in front of the Cabinet, and this contributed to the follow-up of their resolutions. She confirmed that indeed the PSC had no executive functions, but that she did report PSC matters to Cabinet on their behalf.

Mr Van der Merwe asked whether the 'S Reference Code' provided by the Life Association Offices was taken seriously by business.

Mr M Denenga (Legal Advisor, South African Insurance Association) replied that the 'S Reference Code' provided by the Life association Offices was taken seriously by business. There were brokers who were not part of this system but the problem may be resolved by the new legislation, which will hopefully provide for this system to cover all brokers.

Mr M Waters (DA) asked what the budget of the National Anti Corruption Forum (NAC Forum) was and who would contribute.

Minister Fraser-Moleketi replied that they had no specific budget for the NAC Forum at that particular point, but that it was something they needed to look at. Presently all efforts by the NAC Forum were the result of financial contributions from the PSC. They were busy trying to encourage the Private Sector to contribute and would also look at other avenues. She explained the difficulty of asking Civil Society Organisations for contributions while they had to depend on donor funding themselves.

Mr M Waters (DA) asked why the Eastern Cape Network Against Corruption was now defunct.

Mr Hennie Van Vuuren (Institute of Security Studies) explained that the Eastern Cape Network Against Corruption was established by the Speaker of the Provincial Legislature in the Eastern Cape. He said that it was a forum wherein Civil Society Initiatives would meet with anti-corruption Agencies and provide information to Standing Committees who would then take up particular issues with Members of the Executive Council (MECs). He said that he was not clear on why this Network is now defunct but included it in his report because it was a good model.

Professor Lavigne (Deputy Director-General, PSC) said that he might have more insight into issue of the Eastern Cape Network Against Corruption since he had some involvement with it. He explained that its 'dissolving' was mainly due to duplication of work done by some organisations involved in the network and the organisational fatigue resulting from this.

Mr Waters mentioned that he was impressed with the work done the Public Service Accountability Monitor (PSAM) in Grahamstown, and asked who was funding the organisation.

Mr Van Vuuren replied that two donors funded the organisation: the Open Society Foundation and the Anglo-American Chairperson's Fund.

Minister Fraser-Moleketi noted that there seemed to be an interest at the moment in the Eastern Cape anti-corruption activities. Perhaps they should report on the progress of the interim intervention strategies that National Government had implemented there to remedy the crisis that was much talked about earlier on in the year. She said they would do this in future meetings.

The meeting was adjourned.