e r 2 - Umgeni Water

Chapter| Analysiss off Riskss21.3FraudPreventionnFollowing a benchmarking exercise, a suitable frameworkk for managing the business risk of fraudd was endorsed bytheExecutiveandAuditCommitteesfordevelopmentof an UmgeniWaterspecificframework.A FraudPreventionPolicyy has beenn developed andis to be approvedby the Umgeni WaterBoard,followingwhich, thecurrentFraudPreventionn Plan will be reviewedto confirmalignment too the Fraud PreventionPolicy.TheFraudPrevention Planwas establishedto prevent or o respondto incidentsof fraud in recognitionoff UmgeniWater’slegal obligationas prescribedd by Section 29.1..1 of the Treasuryy Regulationss arisingg fromthee PFMA.Thegovernance structure for fraudd preventionis ass follows:• TheBoardacknowledges itss responsibility too preventandd detect fraudat Umgeni WateWer.• TheFraudPrevention Committee, whichh comprises the chairman,an external specscialist,thee internalauditorsand managementfocuses on deliberate misrepresentation which could leadto prejudiceofothers andd falsificationby implementingthee FraudPreventionPlan. Thee Chairman of the FraudPreventionCommitteeattendsAuditCommitteemeetingsprovidingg regularfeedbackk onn theactivities off the Fraudd prevention Committee.UmgeniWater continues to operatee a fraudhotlinee service,managedd byy anexternall service provider andisavailable too all staffmembersand other stakeholders,includingsuppliers,, toenable all stakeholders to reportsuspicions of fraudd orotherwiseunethical behaviour.Pagee 152Umgeni WateWer Five-Year Business Plann | 201121/2012to 2015/2016