PARLIAMENT:
RESEARCH UNIT
SUMMARY OF THE ANNUAL REPORT OF THE
SPECIAL INVESTIGATION UNIT (SIU) 2006/07
1. INTRODUCTION
The purpose of this paper is to assist the Portfolio Committee on Justice and
Constitutional Development in exercising its oversight responsibilities by
providing a summary of the Annual Report of the Special Investigation Unit
(SIU) 2006/07.
1.1 LEGISLATIVE
MANDATE
Special Investigation Units and Special
Tribunals Act 1996
The SIU is a statutory body established in terms of the Special Investigating
Units and Special Tribunals Act, No. 74 of 1996. The main objective of the SIU
is to investigate matters as set out in section 2 of the Act. It receives its
mandate from the President via proclamation and is accountable to the President
and Parliament.
The primary purpose of the SIU is to enable the State to recover money that is
lost due the unlawful or corrupt action of its employees or other persons. The
SIU acts in a similar manner as a commission of inquiry. The Unit operates in a
criminal environment using civil legal remedies. In the event of the SIU
uncovering wrongdoing it can institute civil action against the wrongdoer in
the Special Tribunal. The Special Tribunal is a specialised court that deals
specifically with its cases.
The SIU is empowered by the following proclamations to conduct its
investigation:
Proclamation R49 of 2006, dated 7
December 2006 (Government Gazette No 29456)
This proclamation directed that an investigation be conducted into the irregular
investment of public money by officials in Umzinyathi and Uthungulu regional
councils, Amajuba, Umzinyathi and Uthungulu district municipalities and
Escourt/Wembezi Transitional Local Council and the Umtshezi Local Municipality.
Proclamation R50 of 2006, dated 7
December 2006 (Government Gazette No 29456)
This proclamation directed the irregular payment of special pensions by the
Special Pensions Board.
Proclamation R23 of 2006, dated 12 May
2006 (Government Gazette No 28825)
This proclamation directed an investigation into the procurement and payment in
respect of the bucket eradication sanitation project.
Proclamation R33 of 2006, dated 11
August 2006 (Government Gazette No 29115)
This proclamation directed an investigation into the Ditswakotleng Fresh Farm
Production Project Investigation.
Proclamation R5 of 2007, dated
This proclamation directed an investigation into irregular payment and receipt
of social assistance by officials in the Department of Social Welfare both
nationally and provincially.
2. VISION,
The vision of the SIU is "working together to rid
society of corruption."
The mission of the SUI is to "fight corruption through quality
investigation and litigation."
3. GOVERNMENT
STRATEGY
The SIU falls under Programme 5: Auxiliary and Associated Services of the
Department of Justice and Constitutional Development. The purpose of this
programme is to provide "professional forensic investigation and
litigation services to all state institutions at national, provincial and local
level to combat maladministration, corruption and fraud and to protect state
assets and public money."1 The Estimates of National Expenditure (ENE)
sets specific targets for the SIU.
The ENE for 2006/07 lists the following as targets for the SIU in the reporting
period:
Table 1: ENE Medium Term Output Targets
|
Sub
programme |
Output |
Measure/Indicator |
Target |
|
Special
Investigation Unit |
Investigation
of maladministration and corruption |
Number of
civil and criminal cases, disciplinary proceedings and other remedial actions |
10 000
actions |
|
|
Litigation
to recover government property or money or prevent losses |
Savings
and cash recoveries Value of
theft and losses prevented |
R100
million R 1,25
billion |
·
There
is no specific information provided in respect of the ENE targets for the
number of civil, criminal and other actions taken as a result of
investigations. Performance in this area can thus not be determined.
·
Investigations
resulted in an amount of R 231 million being saved and R 32 million was
recovered. This is a total of R 263 million and is in excess of the target of R
100 million.
·
Losses of money amounting to R 1, 7 billion was prevented against a target of R 1,
25 billion.
Questions
How did the SIU perform in respect of the ENE target of 10 000 actions?
4. SERVICE
DELIVERY
The SIU is currently undertaking 5 ongoing national investigations and 40
regional investigations which involve 19 government departments. Skilled
specialists were employed. As a result of this expansion, the organisation
required a review of its design and operating model and accordingly undertook a
comprehensive organisation development project. The implementation of the
project findings is to be implemented within the next 12 months.
·
The
SIU failed to meet its target of 5 025 'evidence prepared for use in civil
litigation' with 4 829 preparations achieved. However,
the target in the reporting period increased greatly in comparison with the
2005/06 target of 40.
·
The
target of 2 000 in respect of 'evidence prepared for use in criminal
prosecutions' was exceeded with
3 302 activities having been? undertaken.
·
7
551 activities in respect of 'evidence prepared for use in disciplinary
proceedings' was performed against a target of 2 300.
·
95
846 activities in respect of 'evidence prepared for use in other remedial
action' was achieved against a target of 45 000.
·
The
SIU met all its monetary targets in respect of savings, preventions and cash
recoveries. A total of R2, 022 million was accumulated against a target of R1,
350 million.
Major Investigations
·
Department
of Social Development: 43 705 public servants were identified as receiving
social grants. Of this 22 000 were found not to be entitled to receive these
grants and 20 307 have been removed from the system.
·
Department
of Correctional Services: Investigations were conducted into the areas of
procurement, correctional centre pharmacies and asset management. With regard
to procurement, 10 investigations were finalised and R7, 8 million was
recovered.
·
Department
of Transport: This investigation focused on 55 driving licence testing centres.
A total of 716 144 drivers licences were reviewed and 30 553 were found to be
invalid.
·
Special
Pensions Fund: This investigation will audit 16 000 beneficiaries. This
investigation will be finalised during the next reporting period.
·
- Local
Municipalities: Investigations into allegations of irregular and/or unlawful
investment of municipal funds in three municipalities were conducted.
- Department of Transport: Investigations into the awarding of contracts was
conducted and resulted in disciplinary action against three officials and the
dismissal of two officials.
- Witness Protection Programme (WPP): An investigation was carried out in the
irregular lease of safe houses by the WPP. Four out of five phases of the
investigation has been completed. A civil claim of R4, 7 million was instituted
against the former regional head of the WPU.
- Department of Housing: The Unit identified fraud committed by contracted
conveyancing attorneys.
·
Eastern
·
·
Bucket
Eradication Sanitation Project resulted in the contractor signing an
acknowledgment of debt amounting to R1.3 million for losses incurred by the
Municipality.
·
5. HUMAN
RESOURCES
·
The
SIU appointed 116 new members during the reporting period and has a staff
complement of 543 members.
·
The
rate of staff turnover was reduced from 8% in 2005/06 to 7,1%
in 2006/07.
·
The
SIU exceeded its employment equity target with 80% of staff from designated
groups against a target of 70%.
·
While
the performance of the SIU is commendable in this area, there is no data
provided to support the above assertions. Therefore this information still
stands to be verified.
Questions
- What strategy has the SIU implemented to retain staff?
- How many women are employed by the SIU and at what levels?
6. REPORT
OF THE AUDITOR GENERAL
The SIU obtained an unqualified audit during the reporting period. The AG also
found that the annual report of the SIU and the audited financial statements
fairly present the performance of the Unit.
7. CONCLUSION
The SIU has achieved a commendable performance in the
reporting period. However more details are required in its report so
performance can be independently measured and verified.