Limiting Misconduct Through Anti-Corruption

Presented by Brian Kgomo

Head: EthicsSouth African Revenue Service

QUOTE

Do What You Should Do, Not What You Want to Do

“The measure of a man’s real character is what he would do if

he would never be found out.”

[Thomas Macaulay

QUOTE

QUOTE

“The ultimate measure of a man is

not where he stands in moments of comfort and convenience, but where he

stands at times of challenge and controversy.”

[Martin Luther King, Jr.]

COMBATING CORRUPTION• LEGISLATIVE FRAMEWORK AND MANDATE

SARS Strategic Objectives i.e. (Good Governance and Administration, Human Capability-Integrity)Public Service Anti-Corruption Strategy and its minimum requirementsVarious Anti-Corruption Legislation (Prevention Of Corrupt Activities Act, Protected Disclosure Act, Public Finance Management Act, Access to Information Act, Financial Intelligence Centre Act)

• Structure and role of different units within the Ethics Office in supporting the strategy

CAPACITY REQUIRMENTSCAPACITY REQUIREMENTS

ETHICS AND GOVERNANCE

Integrity Unit Ethics Awareness Unit Internal Corruption Investigation Unit

•Only people with integrity employed•Pre-employment screening (qualifications, criminal, etc)•Vetting of relevant employees and suppliers/contractors

Ensures that integrity is maintained and cultivated through policies, guidance, advice and training.

Investigates and prosecutes cases of internal fraud and corruption.

Governance

•Policy Co-ordination

•Compliance Monitoring

IMPROVED ACCESS TO REPORTING AND PROTECTION

• Whistle Blowing Policy (Draft) to effect the Protected Disclosure Act within SARS

• Internal/External Anti-corruption hotline

PROHIBITION OF CORRUPT PEOPLE AND INDIVIDUALS

• Pre-Employment Screening • Vetting• Ad-hoc Probing Of Suppliers

IMPROVED MANAGEMENT POLICIES AND PRACTICES

• Compliance Checklists• Policy Co-ordination Formalised• Procurement Policy• Recruitment Policy• Delegation Of Authority (Being

Reviewed)• Investigations Policy (Draft), • Disciplinary Code and Process

MANAGING PROFESSIONAL ETHICS

• Public Service /SARS Code Of Conduct• Code Of Ethics (Draft)• Declaration of Private Interest • Gifts Policy• Organisational Ethics Assessment Study• Ethics Awareness Training • Ethics Communication Strategy

PARTNERSHIP WITH STAKEHOLDERS-

• Law enforcement agencies-South African Police Services, National Prosecuting Authority, Directorate Of Special Operations, Asset Forfeiture Unit, Financial Intelligence Centre

• Professional Organisations- Universities, Chartered Accountants’ Regulators and Associations, Institute Of internal Auditors, Ethics SA etc

• Business and Civil Society• Trade Unions

SOCIAL ANALYSIS AND RESEARCH

• Analysis and research of trends and causes of corruption (Seminars, Conferences, Seminars, Fact finding visits)

• Impact analysis of anti-corruption measures (Planned for the Future)

AWARENESS TRAINING AND EDUCATION

• Ethics Awareness Training (In Progress)

• Communication & Awareness of SARS Policies (In-Progress)

• Communication & Awareness of Legislation (Planned)

DO THE RIGHT THING ALL THEDO THE RIGHT THING ALL THETIME EVEN IF NO ONE IS TIME EVEN IF NO ONE IS

WATCHINGWATCHING

TransparEncy and openness

Mutual respecT and trust

Integrity and Honesty

EquIty and fairness

Courtesy and Commitment

SARS VALUES

ETHICS VS GOVERNANCE

• Two sides of the same coin – The two co-determine and impact on each other

• Governance:– Conduct of the Organisation, i.e. formal organisational

systems and informal (top) leadership systems

• Ethics:– Behaviour of employees

WHY DO EMPLOYEES BEHAVE UNETHICALLY?

Job Dissatisfaction

Observed Misconduct

Pressure

SEVEN ELEMENTS OF CULTURE CHANGE

• Stated position or standard

• Formal Systems

• Informal Systems

• Perfomance Measures and Rewards

• Communication and Education

• Response to Critical Events

• Perceptions of Leadership Agendas/Motives

© 2006 Ethics Institute of South Africa (EthicSA)

ELEMENTS OF OUR ETHICS PROGRAM

• In order to change our culture and enforce and entrench ethical behaviour, SARS is following this program.– Ethics Committee– Mission, Vision, Values Statement– Code of Conduct/Ethics– High-level Ethics Official– Ethics Officer (s)– Ethics Training– Communication Strategy– Anti-Corruption Hotline – Internal Corruption Investigations Unit– Annual ethics reporting– Independent assessment

ELEMENTS OF OUR ETHICS PROGRAM

• Ethics Committee:– Consists of several General Managers– Reports to EXCO– Monitors and evaluates

• Mission, Vision, Values Statement– Conveys SARS’ commitment to high standard of ethical and moral

behaviour• Code of Ethics/Conduct

– Codifies expected behaviour• High-level Ethics Official

– Responsible for overall management of SARS ethics program and fraud prevention strategy

ELEMENTS OF OUR ETHICS PROGRAM

• Ethics Officer (s)– Conducts awareness– Provides advice

• Ethics Training– At induction course– Management workshops– Employee workshops

• Uses SARS related case studies• Focuses on ethical decision making, adherence to

policies, cultivation of virtue and development of moral courage

ELEMENTS OF OUR ETHICS PROGRAM

• Communication Strategy– Awareness material such as posters, pamphlets– Internal Newsflashes (via Intranet)– Workshops– SARS News– Comic Strip– Own Website– Message on salary advices– Screensavers– Annual Reporting

ELEMENTS OF OUR ETHICS PROGRAM

• Advice line / Hotline

– Telephone and e-mail assistance with the interpretation of policies, expected behaviour, ethical decision-making, ethical dilemmas

– Webpage with FAQ, general guidance iro ethical decision-making and dilemmas, etc

• Administered by Ethics Office

• Hotline for internal and external reporting of any suspicious activity relating to SARS employees (fraud and corruption)

– Reporting mechanism accessible to both employees and public to report unethical behaviour of SARS employees

– Suspicious Activity Reports (Inter- and Intranet)

– Reporting mechanism accessible to both employees and public to report unethical behaviour of SARS employees

• Administered by independent third party

ELEMENTS OF OUR ETHICS PROGRAM

• Internal investigations by Internal Corruption Investigations– In conjunction with SAPS if criminal case– Prosecution– Disciplinary process

• Effective monitoring and oversights– Enterprise-wide Risk Steering Committee (internal)

– Ethics Committee (internal)

– Audit Committee (external)

– Auditor General (external)

• Annual ethics reporting– SARS Annual Report– Minister’s Report– Auditor-General Report

ELEMENTS OF OUR ETHICS PROGRAM

• Organisational ethics assessment (in-house / independent)– Conducted in-house assessment in 2005

– Establish and monitor organizational and ethical climate within SARS

– Establish pressures employees experience to “force” them to behave unethically

– Baseline for measuring effect, impact and success of awareness campaign and education

– Results of 2005 assessment utilized in annual negotiations with Labour

– Informed ethics awareness workshop program

– Independent assessment to follow during 2007

SARS ETHICS RELATED POLICIES

– Code of Conduct/Ethics

– Gifts Policy

– Declaration of Interest Policy

– Whistle-blowing Policy (draft)

– Personnel Vetting Policy

– Pre-employment Inquiry Policy

• Road-shows to explain intent and content of policies

– Obtain buy-in and compliance from employees and Labour Unions

CHALLENGES

• Rules, policies and regulations are not enough. – An ethical organisational culture must be shaped. Ethics must be embedded in

all actions by all employees – long and slow process.• Inviolability of Codes of Conduct and Ethics.

– Under no circumstances should Codes be waived. Exceptions should not be allowed. Consistency is imperative.

• Leadership by example.– Leadership must set a clear, visible example of consistent ethical behaviour.

• Creating an understanding that every business and management decision has an ethical dimension.

• Getting all employees to identify and reason through ethical dilemmas. • Changing behaviour and old habits.• Sustain behaviour and culture change.

• Rules, policies and regulations are not enough. – An ethical organisational culture must be shaped. Ethics must be embedded in

all actions by all employees – long and slow process.• Inviolability of Codes of Conduct and Ethics.

– Under no circumstances should Codes be waived. Exceptions should not be allowed. Consistency is imperative.

• Leadership by example.– Leadership must set a clear, visible example of consistent ethical behaviour.

• Creating an understanding that every business and management decision has an ethical dimension.

• Getting all employees to identify and reason through ethical dilemmas. • Changing behaviour and old habits.• Sustain behaviour and culture change.

IN CONCLUSION

• All SARS Ethics and Integrity measures are aligned with recommendations in the King II Report, PMFA requirements and Government’s anti-corruption strategy which states that the existence of and demonstrable adherence to established principles of ethical conduct provide a strong measure of organisational integrity.

• However, this is not enough.

• SARS’ role and mandate in serving the democratic government requires every SARS official to serve the public interest with unyielding integrity.

• All across the organisation the message should be loud and clear:-

AT SARS INTEGRITY IS NOT NEGOTIABLE

• All SARS Ethics and Integrity measures are aligned with recommendations in the King II Report, PMFA requirements and Government’s anti-corruption strategy which states that the existence of and demonstrable adherence to established principles of ethical conduct provide a strong measure of organisational integrity.

• However, this is not enough.

• SARS’ role and mandate in serving the democratic government requires every SARS official to serve the public interest with unyielding integrity.

• All across the organisation the message should be loud and clear:-

AT SARS INTEGRITY IS NOT NEGOTIABLE

CONTACT NUMBERS FOR ETHICAL VIOLATIONS

Reporting Mechanisms for Ethical Violations

• Corruption or suspicion of corruption may be reported on the Anti-Corruption Hotline No. 0800 0028 70

• Ethical Violations should be reported directly to the SARS Ethics Office. The e-mail address of the Ethics Office is ethics@sars.gov.za

• The following persons may be contacted directly:

– Brian Kgomo (Tel : 012- 4225184) or via e-mail bkgomo@sars.gov.za

– Liezl Biddulph (Tel: 012-4226167) or via e-mail lbiddulph@sars.gov.za