Chapter 2 - P rogramme 1 - Department of Defence

| Chapter 2 - Programme 1: Administration |
Anti-Corruption and Anti-Fraud
The Defence Inspectorate Division has satisfied
these requirements and the Directorate: Anti-Fraud
and Anti-Corruption is functioning in accordance
with the prescripts of the Prevention and Combating
of Corrupt Activities Act, 2004 (Act No. 12 of
2004).
The anti-corruption and anti-fraud strategy is based
on the three main outcomes of the National Anti-
Corruption Summit of 1999, namely preventing
corruption, combating corruption, and building
integrity and raising awareness. In order to achieve
the desired result, it was important to introduce a
strategy to advise, direct and guide members of
the DOD on their approach to the seriousness
of corruption and fraud. The Departmental
Corruption and Fraud Prevention Conference was
held in Pretoria over the period 17 to 19 April 2007.
This conference was the culmination of the regional
workshops on corruption and fraud that were held in
each of the nine provinces in 2007. The aim of the
conference was to source inputs from members of
the DOD on the compilation of an anti-corruption
and anti-fraud plan. The Division has managed to
permanently secure a slot to publicise the Anti-
Corruption and Anti-Fraud Toll-Free Number on
the paysheet of members of the DOD. The anticorruption
and anti-fraud awareness campaign of
the DOD, which is spearheaded by the Defence
Inspectorate Division, is now reaching all members.
The Division investigated 24 cases of alleged fraud,
of which eight were successfully prosecuted. The
following cases were received from the Public
Service Commission:
•
•
•
•
•
Case no CA10/04/07 – Received from the
Western MP Region, concerning the misuse of
a military vehicle. Case was referred to MPD for
investigation;
Case no CA06/08/07 – Received from ASB
Oudtshoorn, concerning allegations with
regard to repairs of “B” vehicles. Case closed
due to no fraud being detected;
Case no CA06/08/07 – Received from 9SAI
Bn, concerning an allegation relating to
military rations. Case was referred to MPD for
investigation;
Case no CA09/10/07 – Received from
DACAF, concerning fraud with regard to inland
accommodation expenses. Case was referred to
MPD for investigation;
Case no CA10/12/07 – Received from ASB PE,
concerning alleged fraud with regard to pension
Annual Report FY 2007 - 2008
| Department of Defence |
56
•
benefits of a deceased member. Case is under
investigation with the Humewood SAPS; and
Case no CA07/12/07 – Received from MP
School, concerning alleged fraud with regard
to examinations. Case was referred to the MPD
for investigation.
Fraud prevention measures that were put in place
in FY 2007/08 indicate that the trends for fraud
and corruption lie in the Logistics, Acquisition and
Procurement, and Human Resources environments.
The number of whistle-blowers who made use of
the corruption and fraud hotline in FY 2007/08
increased to such an extent that it required a dedicated
member to be assigned to monitor incoming calls.
Corruption- and fraud-prevention bulletins were
distributed to members of the DOD.
The emphasis for FY 2007/08 was on fraud
awareness and 9 200 members of the DOD were
addressed in this regard. The regions and number
of members who were addressed are as follows:
•
•
•
•
•
•
•
•
•
Limpopo – 2 111
Free State – 1 959
Western Cape – 1 204
Gauteng – 1 726
North West – 700
Mpumalanga – 500
KwaZulu-Natal – 500
Northern Cape – 300
Eastern Cape – 200
Audit Committee
The Audit Committee provided guidance in the
Financial Year 2007/08 to the Internal Audit
Division. Amongst many issues, it included the
identification of shortcomings in the Internal Audit
Plan and the lack of expertise by internal auditors.
The external members of the Audit Committee
made their services available to assist the DOD in
identifying suitable candidates that can assist the
DOD in bridging the gap. The Defence Inspectorate
Division provided the secretarial services for all the
Audit Committee meetings.
Composition of the Audit Committee: During
the year under review, the Audit Committee for
the Department of Defence (DOD AC) was duly
constituted according to the PFMA. The Audit
Committee consists of five external members and
two internal members. The external members to the
DOD were as follows, with their appointment dates
indicated in brackets: Dr D. Konar (Chairperson) (27