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PRESENTATION TO THE PORTFOLIO COMMITTEE
ON JUSTICE AND CORRECTIONAL SERVICES
Annual Report 2016/17
11 October 2017
1
Presentation Outline
SIU Annual Report 2016/17 Presentation to PC J & CS
1. Annual Performance Information
2. Ongoing Investigations
3. Civil Litigation Matters
4. Governance
5. Human Resources
6. Financial Overview
7. Organisational Review
2
SIU Annual Report 2016/17 Presentation to PC J & CS
1. ANNUAL PERFORMANCE
INFORMATION
3
REPORT OF THE ACCOUNTING AUTHORITY
4SIU Annual Report 2016/17 Presentation to PC J & CS
The SIU recognises that improvements to our organisational framework requires:
• stability to the operation environment,
• robust accountability,
• attaining growth through operational excellence, and
• demonstrating significance in our changing environment.
Organisational Review commenced to reflect on critical issues including; the organisation’s long-term
strategy through short term measurable goals, concrete steps to mitigate and overcome these challenges;
the necessary change management required of the organisation and steps the SIU has taken this far;
and the added value the SIU is providing in the multi-agency sector.
The project aims to improve the organisation through the determination of an organisation design, aligned
remuneration structure, adequate job designs and career paths as underpinned by a robust strategy and
changing culture where the SIU, as a whole, realises its role within a changing environment. This will
improve SIU capacity to fight corruption both in the public sector and in the private sector.
p.06
THE AUDIT OPINION
SIU Annual Report 2016/17 Presentation to PC J & CS 5p.86-88
REPORT OF THE AUDITOR GENERAL
• SIU received a clean, unqualified audit report for the 2016/17 financial year by the Auditor General:
– Audit opinion: ”In my opinion, the financial statements present fairly, in all material respects,
the financial position of the SIU as at 31 March 2017, and its financial performance and
cash flows for the year then ended…”
– Performance information: “I did not identify any material findings on the usefulness and
reliability of the reported performance information for the following objectives…”
– Compliance to legislation: “I did not identify any instances of material non-compliance with
specific matters in key legislation, as set out in the general notice issued in terms of the
Public Audit Act.”
– Internal control deficiencies : “I did not identify any significant deficiencies in internal
control”
YEAR ON YEAR AUDIT OPINION
SIU Annual Report 2016/17 Presentation to PC J & CS 6
2012/13 2013/14 2014/15 2015/16 2016/17
Type of
Opinion
Unqualified Unqualified Unqualified Unqualified Unqualified,
Clean
Number of
emphasis of
matter
1 1 1 0 0
• Clean Audit Report for the 2016/17 Financial Year.
• The SIU has developed an action plan to clear the audit
findings as raised by the Auditor General during the
audit and is currently progressing positively against the
end of financial year deadline.
p.86-88
Key Performance Highlights
137
The number of referrals
made for disciplinary, executive
and/ Or administrative action
The number of referrals
that have been to the NPA for
Prosecution and the AFU for
forfeiture orders
The value of matters in respect of
which evidence was referred for the
institution of defense/opposition of
civil proceedings (including
arbitration or counter civil
proceedings)
The value of four contracts (s)
and/or administrative
decision(s)/action(s) set aside or
deemed invalid as a result of the
SIU’s intervention(s)
The value of payments that were
not made in four matters as a
result of the SIU’s intervention(s)
The actual value of money
and/or assets that has been
recovered for the State
The potential value of
money that may be
recovered for the State
The number of final
investigation reports submitted
to the Presidency
7p.07
ANNUAL PERFORMANCE
INFORMATION 2016/17
SIU Annual Report 2016/17 Presentation to PC J & CS
Estimate for National Expenditure Financial Report - 2016/2017 Financial Year
SIU Business Operations
Core Mandate
Combatting Corruption
Key Performance Indicator Actuals Annual Target Deviation
The number of investigations closed out 1,186 800 48%
The number of reports submitted to the Presidency 6 5 20%
The value of money and/or assets potentially recoverable 126,920,485 240,000,000 -47%
The actual value of money and/or assets recovered 43,500,706 140,000,000 -69%
The value of potential loss prevented 106,527,223 18,000,000 492%
The value of contract(s) and/or administrative decision(s) / action(s) set
aside or deemed invalid 4,014,630,241 600,000,000 569%
The value of matters in respect of which evidence was referred for the
institution or defence/opposition of civil proceedings (including arbitration
or counter civil proceedings) 3,816,540,390 1,200,000,000 218%
The number of referrals made to the relevant Prosecuting Authority 108 60 80%
The number of referrals made for disciplinary, executive and/or
administrative action 137 75 83%
The number of SIU member(s) participating in Joint Operation(s) or
seconded to assist State Institutions 54 30 80%
ACTUAL PERFORMANCE
2016/2017
8p.18
9SIU Annual Report 2016/17 Presentation to PC J & CS
ANNUAL PERFORMANCE
INFORMATION 2015/16
Final Estimate for National Expenditure Financial Report - 2015/2016 Financial Year
SIU Business Operations
Core Mandate
Combatting Corruption
Key Performance Indicator YTD Actuals Annual Target Deviation
Number of Proclamations Issued 5 12
-58%
Percentage of Issued Proclamations Finalised 0% 60%
-100%
Potential Value of Cash and/or Assets Recoverable 73,026,879 220,000,000
-67%
Actual Value of Cash and/or Assets Recovered 52,016,396 120,000,000
-57%
Number of Civil Matters Instituted in Court or the Special Tribunal 5 15
-67%
Number of Referrals made to the National Prosecuting Authority (NPA) 307 45
582%
Number of instances where potential disciplinary matters were bought to the
attention of the relevant State Institution
68 60
13%
2015/2016
ACTUAL PERFORMANCE
SIU Annual Report 2016/17 Presentation to PC J & CS
NUMBER OF INVESTIGATIONS
CLOSED OUT
10p.20
No Proclamation No Proclamation Name
5 R21 of 2010 Gauteng Department of Health
63 R62 of 2010 Tshwane Metropolitan Municipality
9 R8 of 2011 Department of Land Reform
81 R53 of 2011 Department of Land Restitution
1 R54 of 2012 Department of Water Affairs
21 R7 of 2014 extended by R599 of 2015
Department of Rural Development and Land
Reform and the State Information Technology
Agency: Deeds Office
9 R10 of 2014 Department of Communications (Media Corner)
4 R57 of 2014 Department of Transport
173 R59 of 2014 National Department of Public Works (Leases)
7 R62 of 2014 Department of Communications
2 R40 of 2015 Buffalo City Metropolitan Municipality
769 R27 of 2015 National Department of Public Works
20 R598 of 2015 extended by R17 of 2016 Eastern Cape Department of Education
16 R19 of 2016 Construction Industry Development Board
6 R23 of 2016 KwaZulu-Natal Department of Transport
1186
The target of investigations closed out was 800. The total
number of investigations closed out was 1,186 which means
that the target for the year was exceeded by 48%
This is the number of final investigation reports that are submitted to the Presidency. 6 reports were finalised
and submitted between 1 April 2016 and 31 March 2017. The target for the year was 5 reports which means that
the target for the year was exceeded. Reports were submitted in respect of the following proclamations:
SIU Annual Report 2016/17 Presentation to PC J & CS
NUMBER OF REPORTS SUBMITTED
TO THE PRESIDENCY
11p.20
No Proclamation No Proclamation Name Date Submitted Outcomes No Value
1 R62 of 2014 Department of Communications 11-Oct-16 Disciplinary recommendations 3
Criminal referrals 5
Referral to the State Attorney 1
Systemic recommendations
2 R63 of 2010 Ekurhuleni Metropolitan Municipality 03-Nov-16 Disciplinary recommendations 12
Criminal referrals 10
AFU referral to recover proceeds of
crime 1 R27 million
3 R54 of 2012 Department of Water Affairs 15-Dec-16 Disciplinary recommendations 7
Criminal referrals 17
AFU referrals to recover proceeds of
crime 6 R10 million
Repayment of debt owing as a result of
the SIU's intervention R5,8 million
4 R38 of 2010 National Department of Public Works 02-Feb-17 Disciplinary recommendations 7
Criminal referrals 8
Lease declared void ab initio 1
Civil Proceedings 1 R8 million
AOD signed 1 R1 million
5 R598 of 2015 Eastern Cape Department of Education 10-Mar-17 Disciplinary recommendations 7
extended by R17 of 2016 Criminal referrals 6
SARS referral 1
Referral to SITA 1
Referral to the Mustek board 1
6 R21 of 2010 Gauteng Department of Health 30-Mar-17 Irregular expenditure R920 million
Disciplinary recommendations 4
Criminal referrals 9
AFU preservation order 1 R800 million
Actual savings R800 million
SIU Annual Report 2016/17 Presentation to PC J & CS
VALUE OF MONEY AND/OR ASSETS
POTENTIALLY RECOVERABLE Continued
12p.21
This measures the value of money and/or assets that may potentially be recovered for the State and/or
relevant third parties.
The target for the year was R240 million. The actual amount recovered was R126.9 million which
means this target was not met.
Root cause analysis:
• There were challenges with matters referred to AFU (i.e. quantifying losses). Orders in excess of
R300 million were effected by this;
• SIU engaged the AFU which is awaiting the outcome of the AC Industrial matter wherein the
magistrate has to make a decision on the quantum that the state may claim;
• There were delays in finalising the just and equitable leg of civil matters; and mitigation strategy to
this is- engagement with Judiciary (Judge Presidents) and to assist with case management,
• There was a change in the profile of matters under investigation (previously the SIU investigated
South Africa Social Security Agency (SASSA) and the Department of Land Reform which made
significant contributions to this indicator); and
• Review the target in the next financial year APP.
SIU Annual Report 2016/17 Presentation to PC J & CS
VALUE OF MONEY AND/OR ASSETS
POTENTIALLY RECOVERABLE
13
Continued
p.21
No Description Value
1 8 Acknowledgement of Debt documents (AODs) signed R 519,799
2 3 AFU Preservation Orders R 46,419,423
3
Payments for parking bays that were never allocated;
Landlords not VAT registered but charged VAT;
Overpayments on lease agreements R 62,566,699
4 171 Acknowledgement of Liability documents (AOLs) R 2,221,843
5Letters of demand issued to firms who benefitted unduly for amounts that
were erroneously overpaid for professional fees R 11,582,171
2 members of a CC were charged with unlawfully and intentionally stealing
property and were found guilty of theft. R 485,725
6
Service providers who had been contracted to provide goods and services,
claimed and were paid VAT but were not VAT registered or did not use
active VAT numbers. R 3,124,825
R 126,920,485
SIU Annual Report 2016/17 Presentation to PC J & CS
ACTUAL VALUE OF MONEY AND/OR
ASSETS RECOVERED
14p.22
The target for the year was R140 million. The actual amount recovered was R43.5 million which means
this target was not met.
Root cause analysis:
• There were challenges with matters referred to AFU (i.e. quantifying losses). Orders in excess of
R300 million were effected by this;
• SIU engaged the AFU which is awaiting the outcome of the AC Industrial matter wherein the
magistrate has to make a decision on the quantum that the state may claim;
• There were delays in finalising the just and equitable leg of civil matters; and mitigation strategy
to this is- engagement with Judiciary (Judge Presidents) and to assist with case management,
• There was a change in the profile of matters under investigation (previously the SIU investigated
South Africa Social Security Agency (SASSA) and the Department of Land Reform which made
significant contributions to this indicator); and
• Review the target in the next financial year APP.
SIU Annual Report 2016/17 Presentation to PC J & CS
ACTUAL VALUE OF MONEY AND/OR
ASSETS RECOVERED Continued
15p.22
No Description Value
1 AOD Enforcement Department collected payments from debtors R 11,506,503
2 4 final AFU Forfeiture Orders R 30,126,196
3
Payments for parking bays that were never allocated;
Landlords not VAT registered but charged VAT;
Overpayments on lease agreements R 1,729,295
4Liability of outstanding licence fees that was paid upon identification by the
liable owner R 138,712
R 43,500,706
SIU Annual Report 2016/17 Presentation to PC J & CS
VALUE OF POTENTIAL LOSS PREVENTED
Continued
16p.23
This measures the prevention of loss generated as a
result of the SIU’s action or through the use of SIU
evidence.
The target for the year was R18 million.
The value of the potential loss prevented was R106.5
million which means the target was not only met but
also far exceeded.
SIU Annual Report 2016/17 Presentation to PC J & CS
VALUE OF POTENTIAL LOSS PREVENTED
17p.23
No Description Value
1
The SIU was mandated to investigate allegations of irregularity in respect of an agreement
which was awarded to a service provider. As a result of the SIU’s investigation payments
were stopped and suspended in respect of the agreement R 83,470,380
2
It was established that an individual contacted two officials and claimed that he was an SIU
member and attempted to change bank details so that a payment of R7 559 994 could be
diverted to him for his benefit. A criminal case was registered and the Department was
advised not to make any further payments until further verification could be done. R 7,559,994
3
A hire purchase agreement between a service provider and a Local Municipality was
cancelled as a result of the SIU’s investigation. The value of the contract was R107 404
471 over the full 36 month period. The total amount paid out under this contract was R92
487 183 which means that R14 917 288 was not paid out as result of the cancellation of
this contract. R 14,917,288
4
The SIU had established during its investigation of the procurement of a lease concluded
that the Department had incurred a loss because it had paid rental for more space than
what was actually being leased. The SIU recommended that the loss be recovered and
that the lease agreement be rectified. The SIU has received confirmation that the
Department has attended to the recovery and has rectified the lease. R 349,167
5
The SIU investigation found that the landlord was overpaid in respect of parking bays which
constituted a loss suffered by the Department. The overpayment identified by the SIU was
not paid to the landlord for rental. The number of the parking bays on the system were also
adjusted which reduced the monthly rental that was to be paid to the landlord. R 230,395
R 106,527,223
SIU Annual Report 2016/17 Presentation to PC J & CS
VALUE OF CONTRACTS AND/OR ADMINISTRATIVE
ACTIONS SET ASIDE OR DEEMED INVALID
18p.24
• This measures the value of contracts and/or administrative decisions/ actions, e.g. tender awards or
appointments, set aside, deemed invalid, terminated or prevented, as a result of the SIU’s actions or through the
use of SIU evidence.
• The SIU’s ability to institute civil action in its own name or on behalf of the State institutions has contributed to the
success of achieving this target.
• The target for the year was R600 million. The value of contracts set aside or deemed invalid for the financial
year in respect of 4 contracts is R4 billion.
R600 Million
4 billion
0
1
2
3
4
5
Target Achievement
Target vs Achieved Performance
target set achieved
SIU Annual Report 2016/17 Presentation to PC J & CS
VALUE OF CONTRACTS AND/OR ADMINISTRATIVE
ACTIONS SET ASIDE OR DEEMED INVALID
Proc R10 of 2014: Department of Communications
In 2012 the Department awarded a tender for rendering services in respect of the public
awareness campaign relating to the Broadcasting Digital Migration Process Project to
Media Corner (Pty). In September 2016 the High Court of South Africa found that the
decision to award the tender is reviewed and set aside. The value of the tender award is
R756 000 000.
Proc R7 of 2014 extended by R599 of 2015: Department of Rural Development and
Land Reform (DRDLR) and the State Information Technology Agency (SITA)
The award of a contract to Gijima was declared to be invalid. Due to a pricing error made
during the bid evaluation process, the bid was awarded to the incorrect bidder. In doing so
the principles regulating public sector procurement as set out in section 217(1) of the
Constitution was breached. The value of the contract was R651 225 771.
Continued
19p.24
SIU Annual Report 2016/17 Presentation to PC J & CS
VALUE OF CONTRACTS AND/OR ADMINISTRATIVE
ACTIONS SET ASIDE OR DEEMED INVALID
Proc R57 of 2014: Department of Transport
In 2001 the Department awarded a contract to Tasima to provide traffic management services and
functions with eNaTIS. In 2010, the Department extended the contract for a period of five years. The
Department sought to transfer the eNaTIS and associated services to the Road Traffic Management
Corporation (RTMC) in 2012. Tasima approached the High Court seeking an order to enforce the
extension, pending the outcome of a dispute resolution which was agreed to in the contract. An order
was granted. The Department opposed Tasima’s application by way of a counter application, seeking
to review and set aside the extension of the contract. The High Court found in favour of the
Department but this was overturned by the Supreme Court of Appeal. It concluded that reactive
challenges are not open to organs of state and that the counter application was brought too late to be
considered. It further found that even if the extension could be set aside by way of a reactive
challenge, this would not insulate the Department and the RTMC from complying with the court orders
enforcing the contract. The Department then took the matter to the Constitutional Court. In November
2016 the Constitutional Court handed down judgement and overturned the Appeal Court order and
ordered Tasima to hand the eNaTIS and associated services to the RTMC. The value of the contract
was R2 500 000 000.
Continued
20p.24
SIU Annual Report 2016/17 Presentation to PC J & CS
VALUE OF CONTRACTS AND/OR ADMINISTRATIVE
ACTIONS SET ASIDE OR DEEMED INVALID
Proc R31 of 2016: Amahlathi Local Municipality
In September 2016, the SIU recommended to the Municipality that they should not make
any further payments to Kwane/Laman Financial Services, because this would defy all
business sense and is bound to constitute a reckless incurrence of fruitless and wasteful
expenditure. Section 62(1)(d) of the Municipal Finance Management Act, No 56 of 2003
(MFMA) obliges a municipal manager to take all reasonable steps to ensure “that
unauthorised, irregular or fruitless and wasteful expenditure and other losses are
prevented.” Sections 172(1)(a)(i) and (iii) of the MFMA render the deliberate or grossly
negligent failure to comply with section 62 a criminal offence. In November 2016, Kwane
was informed that by concluding an agreement with BLC Plant Company where BLC
would acquire ownership of the equipment, they had repudiated the hire purchase
agreement concluded with the Municipality. The Municipality has therefore decided to
cancel the hire purchase agreement and all equipment will be returned to Kwane. The
value of the contract is R107 404 471.
Continued
21p.24
SIU Annual Report 2016/17 Presentation to PC J & CS
VALUE OF CIVIL MATTERS
This measures the value of matters in respect of which the SIU instituted or facilitated
civil proceedings or where civil proceedings (including arbitration or counter civil
proceedings) were instituted or opposed/defended by means of SIU evidence. The
target set R1.2 billion, achieved R3.8 billion which means that the target was
significantly exceeded.
22p.25
1.2
3.8
0
0.5
1
1.5
2
2.5
3
3.5
4
Target Achievement
Target vs Achieved Performance
target set achieved
SIU Annual Report 2016/17 Presentation to PC J & CS
VALUE OF CIVIL MATTERS
Proclamation R5 of 2014: South African Post Office (SAPO)
In May 2016 an application was lodged to review a decision to award a lease to Centurion
Vision Development (Pty) Ltd and to set aside the resulting ten year lease agreement and
any addenda. The value of the ten year lease contract is R484 892 453.
Proclamation R38 of 2010: National Department of Public Works (DPW)
A notice of motion has been prepared by Counsel for an order to, amongst others:
• Set aside the agreement and any amendments thereto, as being unlawful, invalid and
of no force and effect. The value of this agreement is R1 993 004 143; and
• Declare that the respondents are liable to reimburse the applicant of all monies paid
pursuant to the agreement. The value of the recovery is R103 003 696.
Continued
23p.25
SIU Annual Report 2016/17 Presentation to PC J & CS
VALUE OF CIVIL MATTERS
Continued
Proclamation R38 of 2010: Department of Public Works (DPW)
• A summons was issued in the High Court, Gauteng Division in the matter between the SIU and MareeEls and Partners CC and Muhammed Mayet Architects. The SIU intends to recover an amount of R3138 951 which was overpaid by the Department in the bona fide and reasonable, but mistaken, beliefthat such amount was due, owing and payable to the defendants.
• A summons was issued in the High Court, Gauteng Division in the matter between the SIU andAurecon South Africa (Pty) Ltd and JH System Engineers Pretoria Inc. The SIU intends to recover anamount of R704 762 which was overpaid by the Department in the bona fide and reasonable, butmistaken, belief that such amount was due, owing and payable to the defendants.
• A summons was issued in the High Court, Gauteng Division in the matter between the SIU andConsultium Project Planning and Management CC. The SIU intends to recover an amount of R111050 which was overpaid by the Department in the bona fide and reasonable, but mistaken, belief thatsuch amount was due, owing and payable to the defendants.
• A summons was issued in the High Court, Gauteng Division in the matter between the SIU and Llale& Company Quantity Surveyors (Pty) Ltd and Mahlati Quantity Surveyors (Pty) Ltd formerly MahlatiLiebetrau (Pty) Ltd. The SIU intends to recover an amount of R6 869 608 which was overpaid by theDepartment in the bona fide and reasonable, but mistaken, belief that such amount was due, owingand payable to the defendants.
24p.25
VALUE OF CIVIL MATTERS
Proclamation R59 of 2014: DPW: Leases
• The State Attorney has been requested to act on behalf of the SIU and to brief suitably qualified and
experienced Counsel and to furnish an opinion regarding the continuation of the lease concluded by
the Department. The value of the matter is R12 042 187.
• Evidence was referred to the State Attorney requesting that they brief Counsel to act for and on behalf
of the SIU, relating to the SIU’s investigation of a lease procured by the Department on behalf of the
SAPS from Silver Moon Investments. Silver Moon has instituted action against the Department for
payment of money which they allege is due. The SIU investigation has obtained evidence and wishes
to intervene in the proceedings and join as a third defendant. The value of the litigation is R37 617
938.
• Evidence was referred to the State Attorney requesting that they brief Counsel to act for and on behalf
of the SIU relating to the SIU’s investigation of a lease procured by the Department on behalf of
Statistics South Africa from Silver Moon Investments. Silver Moon has instituted action against the
Department for payment of money which they allege is due. The SIU investigation has obtained
evidence and wishes to intervene in the proceedings. The value of the litigation is R1 395 864.
• Evidence was referred to the State Attorney requesting that they brief Counsel to act for and on behalf
of the SIU. The SIU contends that the lease is tainted because a proper procurement process was
not followed. The SIU is seeking an opinion on DPW’s recourse in this matter. Counsel has been
briefed and is busy preparing papers. The value of the litigation is R6 382 128.
Continued
25
SIU Annual Report 2016/17 Presentation to PC J & CS
VALUE OF CIVIL MATTERS
Proclamation R59 of 2014: DPW : Leases
• Evidence was referred to the State Attorney requesting that they brief Counsel to act for and on behalfof the SIU. The relief that the SIU is seeking is that the lease agreement entered into must bereviewed, set aside and declared invalid and that the excessive rental amounts paid, be recovered.The value of this litigation is R609 million.
• Evidence was referred to the State Attorney requesting that they brief Counsel to act for and on behalfof the SIU. The relief that the SIU is seeking is as follows:
– The decision to conclude a lease agreement be declared unlawful and set aside;
– Or declare that the lease was concluded without a valid needs assessment being concluded orwithout the signatories being authorised to sign the lease;
– Or declare the lease null and void;
– Or declare that the lease agreement was unlawful without declaring it void and ordering thatrentals payable be recalculated and the difference between the rentals actually paid be correctedand offset against corrected future rentals.
The value of the litigation is R151 211 439.
• Evidence was referred to the State Attorney requesting that they brief Counsel to act for and on behalfof the SIU to institute legal proceedings to recover losses suffered by the Department. The value ofthe litigation is R15 260 690.
Continued
26p.25
SIU Annual Report 2016/17 Presentation to PC J & CS
VALUE OF CIVIL MATTERS
Proclamation R62 of 2014: Department of Communications
• During the course of the SIU’s investigation, evidence was obtained, which in our view,necessitates the institution of civil proceedings against an official in relation to traveland accommodation expenses or other benefits which were irregularly paid by theDepartment in respect of a person who does not qualify therefore. The value of thematter is R693 857.
Proclamation R54 of 2014 amended by R44 of 2015: DPW: Prestige situated in the
Western Cape
• Evidence was referred to the State Attorney requesting that they brief Counsel to actfor and on behalf of the SIU. The referral was as a result of a verification of the finalaccount and related evidence, in respect of a Prestige project in the Western Cape. Itwas found that the contractor was not entitled to certain payments which were claimedfor and which were incorrectly allowed/condoned. The value of the litigation is R4 738249.
Continued
27p.26
SIU Annual Report 2016/17 Presentation to PC J & CS
VALUE OF CIVIL MATTERS
Continued
Proclamation R18 of 2016: Department of Correctional Services (DCS): Electronic
Monitoring System
• Evidence was referred to the State Attorney requesting that they brief Counsel to act for
and on behalf of the SIU relating to the SIU’s investigation into a contract that was
awarded to Engineered System Solutions for the electronic monitoring of eligible
prisoners. The value of the litigation is R365 million.
Proclamation R598 of 2015 extended by R17 of 2016: DOE: Eastern Cape Province
• A summons was issued in the High Court, Grahamstown against four defendants in
relation to the Siegesmund Trust and the relief sought is an order declaring that the
procurement of goods as well as the Service Level Agreement (SLA) is unlawful and void
and thus so is the payment of the profit calculated at R12 578 703. The value of the
litigation is R59 261 488.
28p.27
SIU Annual Report 2016/17 Presentation to PC J & CS
VALUE OF CIVIL MATTERS
Proclamation R20 of 2016: DCS
• Evidence was referred to the State Attorney requesting that they brief Counsel to act
for and on behalf of the SIU relating to the SIU’s investigation into the appointment of
MSW. The relief being sought by the SIU is as follows:
– The appointment of MSW by the Department in respect of the renovation project is
irregular and invalid;
– The appointment of Masetloaka Scott Wilson (Pty) Ltd (MSW) by the Department
in respect of the Government Immovable Asset Management Act, No 19 of 2007
(GIAMA) assessment project is irregular and invalid; and/or
– The abovementioned appointments stand(s) to be: declared unlawful and invalid
ab initio; and set aside by a court of law;
– The SIU is also seeking to recover any losses suffered by the Department.
• The value of the litigation is R65 215 583.
29p.27
NPA REFERRALS
SIU Annual Report 2016/17 Presentation to PC J & CS 30p.28
Proclamation No Proclamation Name Nature of Offence No Status
Proc R72 of 2009 North West Province Municipalities Fraud 7 Files pending
Proc R43 of 2010
(extended by R49 of 2012) KZN DPW Fraud and Corruption 8
Referred to Regional Head;
Files pending
Proc R62 of 2010 Tshwane Metro Municipality Fraud 1 Investigation to be finalised
Proc R8 of 2011 National DRDLR: Land Reform Fraud 17
Referred to Regional Head;
Files awaiting decision
Proc R33 of 2011 Midvaal Local Municipality Fraud 2 File pending
Proc R21 of 2012 National Limpopo Intervention Contravention of section 17(1) of PRECCA 1 Referred to Regional Head
Proc R53 of 2012 National DRDLR: Land Restitution Fraud 4
Referred to Regional Head;
Files pending
Proc R5 of 2014
(amended by R56 of 2014) SAPO Contravention of section 17(1) of PRECCA 1 File pending
Proc R51 of 2014 Vhembe District Municipality Contravention of section 173(1)(a)(iii) of the MFMA 3
Referred to Regional Head;
Cases opened for investigation
Proc R59 of 2014 DPW: Leases Fraud, forgery and uttering 19
Referred to Regional Head;
Files pending
Proc R62 of 2014 Department of Communications
Contravention of section 86(1) of the PFMA, as
read with section 38(1)(a)(iii), 38(1)( c)(ii) and
38(1)(n) 1 File referred to DPCI
Proc R27 of 2015 National DPW Fraud 11 No update available
Proc R598 of 2015 ECDOE: Siegesmund Trust
Criminal offence in terms of section 86(1) of the
PFMA 5 Referred to Regional Head
Proc R19 of 2016 CIDB
Fraud, forgery and uttering;
Contravention of section 30(1)(a) of CIDB
regulation;
Contravention of sections 3,4,10 and 21 of
PRECCA 26
Referred to Regional Head;
Files pending
Proc R31 of 2016 Amahlathi Local Municipality Fraud 2 File pending
Total 108
MEMORANDUM OF UNDERSTANDING
(MOU): SIU AND NPA
SIU Annual Report 2016/17 Presentation to PC J & CS 31
• MoU signed on the 28 August 2017 and the monitoring committee was set up
Purpose of the MoU
• For parties to establish a working methodology in connection with the case referred by
the SIU to the NPA.
• Understanding between the parties to adopt and implement reporting mechanisms in
respect of the cases.
• Understanding between the parties of the need to ensure that the cases referred by
the SIU to the NPA are prioritized.
SIU Annual Report 2016/17 Presentation to PC J & CS
DISCIPLINARY RECOMMENDATIONS
32p.29
Proclamation No Proclamation Name Nature of Offence No Status
Proc R21 of 2010 Gauteng: Department of Health
Contravention of the PFMA and the Public Service
Act (PSA) 1 Disciplinary proceedings have begun
Proc R43 of 2010
(extended by R49 of 2012) KZN DPW
Contravention of regulations C4.1, C4.4 and C4.9
of the Code of Conduct for the Public Service 2 Recommendation made for disciplinary action
Proc R62 of 2010 Tshwane Metro Municipality
Misconduct in terms of Section 2(b) of the Code of
Conduct of the Municipal Systems Act No 32 of
2000 (MSA) 1 Recommendation made for disciplinary action
Proc R33 of 2011 Midvaal Local Municipality
Unprofessional, dishonourable or unworthy
conduct in terms of section 71 of the Attorneys Act 2 Recommendation made for disciplinary action
Proc R21 of 2012 National Limpopo Intervention
Contravention(s) of Annexure A of the Disciplinary
Code and Procedures for the Public Service;
Regulation C4.6, 14(d) of the Code of Conduct for
the Public Service Regulation 16A8.4 of the
Treasury Regulations 11 Recommendation made for disciplinary action
Proc R53 of 2012 National DRDLR: Land Restitution
Did not qualify for a Land Claim and was not
entitled to compensation 11
Decision taken not to institute action - 1
Still considering legal opinion - 4
HR still considering matter - 4
Found guilty - 3
Update not available - 1
Proc R7 of 2014
(amended by R599 of 2015) DRDLR and SITA: Gijima
Contravention(s) of Section 217(1) of the
Constitution of SA; Sections 38(1)(a)(i),(iii),
38(1)(b), 38(1)(c)(i),(ii),(iii), 38(1)(d), 38(1)(n),
45(a),(b),(c), 41, 80, 81(1)(a) and 81(1)(b) of the
PFMA; Section 7(3) of the SITA Act, No 88 of
1998; Regulations C1.1, C1.3, C4.4 and C4.9 of
the Code of Conduct for the Public Service;
Regulations 15.10.1.2(b) and/or (c) and 11.5.1 of
the Treasury Regulations; DRDLR’s SCM
Delegations of Authority and Vulindlela Project
Charter 4 Recommendation made for disciplinary action
Subtotal 32
SIU Annual Report 2016/17 Presentation to PC J & CS
DISCIPLINARY RECOMMENDATIONS
33p.29
Proclamation No Proclamation Name Nature of Offence No Status
Proc R7 of 2014
(amended by R599 of 2015) DRDLR and SITA: Deeds Office
Contravention(s) of Regulation 68(1) of the Deeds
Registries Act, no 47 of 1937; Section 3(1)(b) of
the Deed Registries Act; Section 10A(1) of the
Housing Amendment Act 4 of 2001; Regulations
C1.1, C1.3, C1.4, C4.1, C4.4 and C4.9 of the
Code of Conduct for the Public Service; Section
118(1) of the MSA 8 Recommendation made for disciplinary action
Proc R49 of 2014
(amended by R16 of 2015) KZN Treasury
Contravening the code of Good conduct for the
Public Service 1
Department settled with the employee. Final
written warning issued
Proc R51 of 2014 Vhembe District Municipality
Contravention of section 30(1) of the Public
Service Act; Contravention of regulation C5.5 of
the Code of Conduct for the Public Services;
Contravention of section 33(1)(b) of the
Employment of Educators Act 2 Recommendation made for disciplinary action
Proc R52 of 2014 Greater Tubatse Municipality
Contravention of Section 78(1),(2) and
171(1)(a),(b),(c) of the MFMA Act 56 of 2003 2 Recommendation made for disciplinary action
Proc R57 of 2014 Department of Transport
Contravention of the PSA and the Public Service
Regulations 19
Employee found guilty and dismissed - 1
Disciplinary hearings in progress - 18
Proc R59 of 2014 DPW: Leases
Contravention of the Disciplinary Code and
Procedures for the Public Service; Annexure A of
the Disciplinary Code and Procedures for the
Public Service; Section 45(c) of the PFMA;
Regulation C4.4 of the Code of Conduct for the
Public Service; Administrative action: Promotion of
Administrative Justice Act, Act 3 of 2000 (PAJA) 19
Allegations not pursued due to inconclusive
evidence - 2
Charges have been referred to the attorney
dealing with the Nkandla matter - 1
Written warnings issued - 1
Disciplinary proceedings have been scheduled -
9
Found no guilty - 1
Recommendation made for disciplinary action -
4
The employee left the Deparment and the case
will be referred to her new employer - 1
Subtotal 51
Continued
SIU Annual Report 2016/17 Presentation to PC J & CS
DISCIPLINARY RECOMMENDATIONS
34p.29
Proclamation No Proclamation Name Nature of Offence No Status
Proc R62 of 2014 Department of Communications
Contravention of the Disciplinary Code and
Procedures for the Public Services; Contravention
of section 45( c) of the PFMA; Contravention of
regulation C4.4 of the Code of Conduct for the
Public Services 1 Recommendation made for disciplinary action
Proc R27 of 2015 National DPW Contravention of section 30(1) of the PSA 1 Recommendation made for disciplinary action
Proc R598 of 2015 ECDOE: Siegesmund Trust Administrative action: PAJA 1
Matter referred to the Office of the Premier to
make the decision to institute disciplinary
proceedings
Proc R598 of 2015
(extended by R17 of 2016) ECDOE
Gross negligence; Contravention of section 38 1
(b) and section 38 (1) (c) (ii), 45(a), section 45(b)
and section 45(c) of the PFMA; Fraud 2
Matter referred to the Office of the Premier to
make the decision to institute disciplinary
proceedings - 1
1 employee resigned and is not employed at
any other State institution
Proc R19 of 2016 CIDB
Administrative action: PAJA;
Contravention of regulation 30(1)(a) of CIDB
regulations 49 Matters being dealt with by CIDB
Subtotal 54
Total 137
Continued
SIU Annual Report 2016/17 Presentation to PC J & CS
JOINT OPERATIONS OR SECONDMENTS
35
No State Institution / Department / Joint Operation Count
1 SIU members participated in joint operations at ACTT 14
2 Members seconded to EC DOE 13
3 Members seconded to DPW in GAU and WC 10
4 Members seconded to National Department of Co-operative Governance 3
5 Members seconded to the EC Dept of Health 11
6 Member seconded to the NPA 1
7 Members seconded to PSETA 2
54
p.29
SIU Annual Report 2016/17 Presentation to PC J & CS
JOINT OPERATIONS OR SECONDMENTS
36
No
State Institution / Department /
Joint Operation Status
1 National DPW
The SIU team made numerous recommendations related to recovery of lost
funds, referrals for criminal and disciplinary actions as well as systemic
recommendations to the DPW. The DPW referred three matters to the SIU
for investigation under current proclamations
2 Eastern Cape DOH
Finalized the investigation of three cases and identified fraudulent claims in
respect of these three cases, totaling R45 million;
Identified possible fraudulent claims in respect of a further two matters,
which are still being investigated;
Additional information required for a motivation for a proclamation is being
gathered
3 ECDOE
The EC DOE secondments were not completed as there was a change of
leadership, a new SG was appointed, and the secondments were halted.
The SIU is engaging with the SG to determine the way forward
SIU Annual Report 2016/17 Presentation to PC J & CS
2. ONGOING INVESTIGATIONS
37
SIU Annual Report 2016/17 Presentation to PC J & CS
ONGOING INVESTIGATIONS:
NATIONAL GOVERNMENT
SIU Annual Report 2016/17 Presentation to PC J & CS 38p.43-52
No Proc Number Dept/State Institution Status Outcomes No Value End Date
1 R20 of 2016
Department of Correctional
Services (DCS) Investigation ongoing Civil matters 1 R65 million 31/10/2017
No of investigations closed out 16
Disciplinary recommendations 26
NPA referrals 49
3 R18 of 2016
Department of Correctional
Services (DCS) Investigation ongoing Civil matters 1 R365 million 31/10/2017
No of investigations closed out 21
The value of contract(s) and/or
administrative decision(s) /
action(s) set aside or deemed
invalid 1 R651 million
Disciplinary recommendations 12
No of investigations closed out 769
Value of money potentially
recoverable R11.5 million
Civil matters 2 R2 billion
NPA referrals 11
Disciplinary recommendations 1
No of investigations closed out 7
Civil matters 1 R693 857
NPA referrals 1
Disciplinary recommendations 1
30/04/2018
6 R62 of 2014 Department of Communications
Report submitted on
11/10/2016 11/10/2016
31/05/2018
5
R27 of 2015 extends
R38 of 2010
National Department of Public
Works (DPW) Investigation ongoing
4
R599 of 2015
amends R7 of 2014
Department of Rural Development
and Land Reform (DRDLR) and the
SITA Investigation ongoing
2 R19 of 2016 Construction Industry Board (CIDB) Investigation ongoing 31/03/2018
National Government Investigations
SIU Annual Report 2016/17 Presentation to PC J & CS
ONGOING INVESTIGATIONS:
NATIONAL GOVERNMENT
SIU Annual Report 2016/17 Presentation to PC J & CS 39p.43-52
No Proc Number Dept/State Institution Status Outcomes No Value End Date
No of investigations closed out 173
Value of money potentially
recoverable R63 million
Actual value of money
recovered R1.7 million
The value of potential loss
prevented 2 R579,562
Civil matters 7 R832 million
NPA referrals 19
Disciplinary recommendations 19
No of investigations closed out 4
The value of contract(s) and/or
administrative decision(s) /
action(s) set aside or deemed
invalid R2.5 billion
Disciplinary recommendations 19
9 R55 of 2014
Department of Labour and the
Compensation Fund
Final presidential
report being
prepared 31/03/2018
10 R20 of 2014
Universal Service and Access
Agency of South Africa (USAASA)
Final presidential
report being
prepared 31/03/2018
No of investigations closed out 9
The value of contract(s) and/or
administrative decision(s) /
action(s) set aside or deemed
invalid R756 million11 R10 of 2014 Department of Communications
Final presidential
report being
prepared 31/03/2018
Outcomes are being finalised
No criminal, disciplinary or civil action is
recommended
8 R57 of 2014 Department of Transport
Final presidential
report being
prepared 31/03/2018
7 R59 of 2014
National Department of Public
Works (DPW) Investigation ongoing 31/03/2018
National Government Investigations
Continued
SIU Annual Report 2016/17 Presentation to PC J & CS
ONGOING INVESTIGATIONS:
NATIONAL GOVERNMENT
SIU Annual Report 2016/17 Presentation to PC J & CS 40p.43-52
No Proc Number Dept/State Institution Status Outcomes No Value End Date
12 R6 of 2014
Department of Co-operative
Governance and Traditional Affairs
(COGTA)
Report submitted on
12/09/2017 12/09/2017
13 R54 of 2012 Department of Water Affairs (DWA)
1 Final presidential
report submitted
1 investigation
ongoing No of investigations closed out 1 30/11/2017
No of investigations closed out 81
Value of money potentially
recoverable R14.7 million
Actual value of money
recovered R5.3 million
NPA referrals 4
Disciplinary recommendations 11
15
R73 of 2011 extends
R42 of 2010
South African Police Service
(SAPS)
Final presidential
report being
prepared 31/03/2018
No of investigations closed out 9
Value of money potentially
recoverable R34.7 million
Actual value of money
recovered R24.7 million
NPA referrals 17
17 R27 of 2010
South African Social Security
Agency (SASSA ICT)
Final presidential
report being
prepared 31/03/2018
18
R5 of 2007 extends
R18 of 2005
National and all Provincial
Department(s) of Social
Development
Final presidential
report being
prepared
Value of money potentially
recoverable R52,230 31/03/2018
31/03/201816 R8 of 2011
National Department of Rural
Development and Land Reform
Final presidential
report being
prepared
No outcomes for the period under review
No outcomes for the period under review
31/03/2018
No outcomes for the period under review
14 R53 of 2012
National Department of Rural
Development and Land Reform and
its agents (DRDLR)
Final presidential
report being
prepared
National Government Investigations
Continued
SIU Annual Report 2016/17 Presentation to PC J & CS
ONGOING INVESTIGATIONS:
PROVINCIAL GOVERNMENT
SIU Annual Report 2016/17 Presentation to PC J & CS 41p.53-57
No Proc Number Dept/State Institution Status Outcomes No Value End Date
1 R9 of 2017
KZN Provincial Department of
Agriculture and Rural Development
and Mjindi Farming (KZN DOA) Investigation ongoing 31/03/2018
2 R32 of 2016
Independent Development Trust
(IDT), the Dept of Basic Education
(DBE) and the Dept of Education
for the Free State (DEFS) Investigation ongoing 31/03/2018
No of investigations closed out 6
Value of money potentially
recoverable R2.2 million
Actual value of money
recovered R138,712
4 R22 of 2016
Department of Human Settlements
Gauteng Province (NDOHS) and
Lepelle Northern Water Investigation ongoing 30/11/2017
No of investigations closed out 20
The value of potential loss
prevented 1 R7.5 million
Civil matters 1 R59 million
NPA referrals 5
Disciplinary recommendations 3 5
R17 of 2016 extends
R598 of 2015
Eastern Cape Department of
Education (EC Education)
1 Report submitted
on 10/03/2017
1 Final presidential
report being
prepared
3 R23 of 2016
KwaZulu-Natal Provincial
Department of Transport (KZN DOT) Investigation ongoing
Provincial Government Investigations
No outcomes for the period under review
No outcomes for the period under review
No outcomes for the period under review
31/08/2018
10/03/2017
31/03/2018
SIU Annual Report 2016/17 Presentation to PC J & CS
ONGOING INVESTIGATIONS:
PROVINCIAL GOVERNMENT
SIU Annual Report 2016/17 Presentation to PC J & CS 42p.53-57
No Proc Number Dept/State Institution Status Outcomes No Value End Date
6
R44 of 2015 extends
R54 of 2014
National Department of Public
Works (DPW): Prestige
Directorate, Western Cape
Final presidential
report being
prepared Civil matters 1 R4.7 million 31/03/2018
7
R16 of 2015 amends
R49 of 2014
KwaZulu-Natal Provincial Treasury
(KZN Provincial Treasury)
Report submitted on
11/05/2017 No of investigations closed out 1 11/05/2017
NPA referrals 8
Disciplinary recommendations 2
NPA referrals 1
Disciplinary recommendations 11
No of investigations closed out 5
Disciplinary recommendations 1
9 R21 of 2012 Limpopo Province Intervention
Final presidential
report being
prepared 31/03/2018
10 R21 of 2010
Gauteng Department of Health
(GDOH)
Report submitted on
30/03/2017 30/03/2017
31/03/2018
Department of Public Works for the
KwaZulu-Natal Province (KZN DPW)
Final presidential
report being
prepared8
R49 of 2012 extends
R43 of 2010
Provincial Government Investigations
Continued
SIU Annual Report 2016/17 Presentation to PC J & CS
ONGOING INVESTIGATIONS:
LOCAL GOVERNMENT
SIU Annual Report 2016/17 Presentation to PC J & CS 43p.58-63
No Proc Number Dept/State Institution Status Outcomes No Value End Date
1 R10 of 2017
Harry Gwala District Municipality
(HGDM) Investigation ongoing 31/03/2018
2 R8 of 2017 Mopani District Municipality (MDM) Investigation ongoing 31/03/2018
3 R59 of 2016
Greater Sekhukhune District
Municipality (GSDM) and the Elias
Motsoaledi Local Municipality
(ELML) Investigation ongoing 28/02/2018
The value of potential loss
prevented 1 R14.9 million
Value of contracts set aside 1 R107 million
NPA referrals 2
5 R21 of 2016 Msunduzi Local Municipality (MLM)
Final presidential
report being
prepared 31/03/2018
6 R40 of 2015
Buffalo City Metropolitan
Municipality (BCM)
Final presidential
report being
prepared No of investigations closed out 2 31/03/2018
18/08/2017
Report submitted on
18/08/2017Amahlathi Local Municipality (ALM)R31 of 20164
No outcomes for the period under review
Local Government Investigations
No outcomes for the period under review
No outcomes for the period under review
No outcomes for the period under review
SIU Annual Report 2016/17 Presentation to PC J & CS
ONGOING INVESTIGATIONS:
LOCAL GOVERNMENT
SIU Annual Report 2016/17 Presentation to PC J & CS 44p.58-63
No Proc Number Dept/State Institution Status Outcomes No Value End Date
7 R52 of 2014 Greater Tubatse Local Municipality
Final presidential
report being
prepared Disciplinary recommendations 2 31/03/2018
NPA referrals 3
Disciplinary recommendations 2
9 R8 of 2014
Bushbuckridge Local Municipality:
Mpumalanga Province
Final presidential
report being 31/03/2018
10 R63 of 2010
Ekurhuleni Metropolitan Municipality
(EMM): Gauteng Province
Report was
submitted on
03/11/2016 03/11/2016
No of investigations closed out 63
NPA referrals 1
Disciplinary recommendations 1
12 R72 of 2009
North West Province Municipalities
(NWM)
Final presidential
report being
prepared NPA referrals 7 31/03/2018
No outcomes for the period under review
No outcomes for the period under review
31/03/2018
31/03/20188 R51 of 2014 Vhembe District Municipality
Final presidential
report being
prepared
11 R62 of 2010
Tshwane Metropolitan Municipality
(TMM): Gauteng Province
Final presidential
report being
prepared
Local Government Investigations
Continued
SIU Annual Report 2016/17 Presentation to PC J & CS
ONGOING INVESTIGATIONS:
STATE OWNED ENTITIES
SIU Annual Report 2016/17 Presentation to PC J & CS 45p.64-65
No Proc Number Dept/State Institution Status Outcomes No Value End Date
1
R53 of 2014 amended
by R15 of 2015
State Information Technology
Agency (Pty) Ltd (SITA)
Final presidential report
being prepared
The value of potential loss
prevented 1 R83 million 31/03/2018
2 R2 of 2012 Eskom Holdings Ltd
Report submitted on
12/07/2017 12/07/2017
State Owned Entities
No outcomes for the period under review
SIU Annual Report 2016/17 Presentation to PC J & CS
3. CIVIL MATTERS
46
SIU Annual Report 2016/17 Presentation to PC J & CS
SUMMARY OF CIVIL LITIGATION MATTERS
47
No Proc Number Dept/State Institution Civil Matter Description Status Value
1 R59 of 2013 National Dept. of Public
Works: Prestige Project:
Nkandla KwaZulu-Natal
Action proceedings were instituted in the High
Court to claim back a loss of R155 million suffered
by the State due to the conduct of the principal
agent overseeing the security upgrades at
Nkandla.
Pleadings have closed. The SIU
served its discovery affidavit (92 000
pages). The next step is the pre-trial
conference, whereafter the matter will
go to trial.
R155 million
2 R5 of 2014
amended by R56
of 2014
South African Post Office
(“SAPO”)
An application has been lodged in the High Court
to review the awarding of a lease to Centurion
Vision Development (Pty) Ltd and to set aside the
resulting 10 year lease agreement. The matter is
opposed by the Respondents.
The pleadings have not yet closed. R778 million
3 R21 of 2012 Limpopo Province
Intervention:
Sankhyaa Learning Private Limited instituted
action proceedings in the High Court against the
Limpopo Department of Education. The SIU
investigations revealed that there was non-
compliance with public sector procurement
prescripts. The SIU successfully applied to be
joined as a Defendant in this matter.
Provincial Treasury; Health and Social
Development; Roads and Transport; Education
and Public Works
Pleadings are still being exchanged
and the matter is not yet ready for trial.
R85.5 million
4 R53 of 2014
amended by R15
of 2015
State Information
Technology Agency
(“SITA”)
The iFirm contract of R302m was investigated and
the matter is in court in order to declare the
contract invalid and to set the contract aside.
Proceedings are delayed by an appeal
to the Supreme Court of appeal in
another SITA-matter where the same
technical issues raised in the iFirm
case, is the subject matter of the
appeal. The matter is currently
postponed sine die pending the ruling
by the Supreme Court of appeal.
R302 million
p.66
SIU Annual Report 2016/17 Presentation to PC J & CS48p.66
SUMMARY OF CIVIL LITIGATION MATTERS
No Proc Number Dept./State Institution Civil Matter Description Status Value
5 R10 of 2014 Dept. of Communications
(Media Corner)
In September 2016, the High Court ruled that the
awarding of a tender by the Department of
Communications to Media Corner was invalid.
The second leg of the matter, consequential relief
in the form of a just and equitable order, aimed at
the repayment of overpayments is now being
pursued.
The matter is almost ready for trial,
but a trial date has not yet been
applied for.
R752 million
6 R7 of 2014
amended by
R599 of 2015
Dept. of Rural
Development and Land
Reform and the SITA
An application was brought in the High Court to
challenge the award of a tender to Gijima to
provide services to the Department of Rural
Development and Land Reform. In September
2016 the court found the award to be invalid.
The second leg of the matter, which
is the consequential relief of
recovering overpayments, is still
ongoing and not yet ready for trial
R364 million
7 R54 of 2014
amended by R44
of 2015
National Dept. of Public
Works: Prestige situated
in the Western Cape
Action proceedings were instituted in the High
Court to claim back certain payments that a
contractor was not entitled which were claimed
for and which were incorrectly allowed/condoned.
The matter is proceeding R4.7 million
Continued
SIU Annual Report 2016/17 Presentation to PC J & CS49
No Proc Number Dept./State Institution Civil Matter Description Status Value
8 R38 of 2010
extended by R27
of 2015
National Dept. of Public
Works
Lebombo Border Post – An application was
lodged to seek a declaratory order setting aside
the contract awarded on the basis that the award
was in violation of the Constitution. The prayer
for relief also seeks to recover R103 million which
it is alleged amounts to an overpayment.
All applicants are opposing the
matter and have served notices
seeking documentation. Currently
these notices are being dealt with.
The matter is accordingly not yet
ready for trial.
R1.9 billion
9 R38 of 2010
extended by R27
of 2015
National Dept. of Public
Works
Skilpadshek Border Post – The action seeks to
recover R50.8 million that was an overpayment
to the contractor. The matter was before court
from 31 Oct 2016 to 11 Nov 2016.
The matter is currently part heard
and a new date of set down is
awaited.
R50.8 million
10 R38 of 2010
extended by R27
of 2015
National Dept. of Public
Works
Union Building – The SIU is assisting the
Department in defending an action brought by
the Plaintiff for the recovery of outstanding
amounts due for work allegedly completed. The
SIU assisted in providing the evidential material
required for compiling the plea and counterclaim.
The plaintiff has now raised several
exceptions, but has not yet set these
exceptions down for hearing.
R54 million
p.66-67
SUMMARY OF CIVIL LITIGATION MATTERS
Continued
SIU Annual Report 2016/17 Presentation to PC J & CS50
No Proc Number Dept./State Institution Civil Matter Description Status Value
11 R38 of 2010
extended by R27
of 2015
National Dept. of Public
Works
This is an action that was instituted by DPW
seeking the cancellation of 4 leases concluded
with a Mr. Mia and or his associated companies
together with a claim for damages.
Pleadings have closed and a trial
date has been applied for.
R8 million
12 R38 of 2010
extended by R27
of 2015
National Dept. of Public
Works
Empangeni Ramp – Application to recover
overpayments and damages based on fraud,
alternatively negligence.
Proceedings have been delayed by
interlocutory applications. These
have now been dealt with and the
defendants have been placed in
terms to file their plea.
R11.6 million
13 R38 of 2010
extended by R27
of 2015
National Dept. of Public
Works
Salu Lease - Papers have been issued in the
North Gauteng High Court and filed on the
respondents. The landlord is opposing the
Application. DPW has chosen to comply with
whatever decision the Court makes.
The SIU is required to file the record
whereafter the landlord is obliged to
file its answering affidavit.
R151 million
p.67
SUMMARY OF CIVIL LITIGATION MATTERS
Continued
SIU Annual Report 2016/17 Presentation to PC J & CS51
No Proc Number Dept./State Institution Civil Matter Description Status Value
14 R38 of 2010
extended by
R27 of 2015
National Dept. of
Public Works
Wachthuis Lease - Papers have been
issued in the North Gauteng High Court and
filed on the respondents. The landlord is
opposing the Application. DPW has chosen
to comply with whatever decision the Court
makes.
The SIU is required to file the
record whereafter the landlord is
obliged to file its answering
affidavit.
R600 million
15 R38 of 2010
extended by
R27 of 2015
National Dept. of
Public Works
A summons was issued in the High Court,
Gauteng Division. The SIU intends to
recover an amount which was overpaid by
the Department in the bona fide and
reasonable, but mistake, belief that such
amount was due, owing and payable to the
defendants.
The matter is being defended R3 million
16 R38 of 2010
extended by
R27 of 2015
National Dept. of
Public Works
A summons was issued in the High Court,
Gauteng Division. The SIU intends to
recover an amount which was overpaid by
the Department in the bona fide and
reasonable, but mistake, belief that such
amount was due, owing and payable to the
defendants.
The matter is being defended R704 762
p.67
SUMMARY OF CIVIL LITIGATION MATTERS
Continued
SIU Annual Report 2016/17 Presentation to PC J & CS52
No Proc Number Dept./State Institution Civil Matter Description Status Value
17 R38 of 2010
extended by R27
of 2015
National Dept. of Public
Works
A summons was issued in the High Court,
Gauteng Division. The SIU intends to recover an
amount which was overpaid by the Department
in the bona fide and reasonable, but mistake,
belief that such amount was due, owing and
payable to the defendants.
The matter is being defended R111 050
18 R38 of 2010
extended by R27
of 2015
National Dept. of Public
Works
A summons was issued in the High Court,
Gauteng Division. The SIU intends to recover an
amount which was overpaid by the Department
in the bona fide and reasonable, but mistake,
belief that such amount was due, owing and
payable to the defendants.
The matter is being defended R6.8 million
p.67
SUMMARY OF CIVIL LITIGATION MATTERS
Continued
4. GOVERNANCE
53
GOVERNANCE; ENTERPRISE WIDE
RISK MANAGEMENT
SIU Annual Report 2016/17 Presentation to PC J & CS 54p.70
• A Risk Management Committee is in place and is led by an independent chairperson;
• As a unit we are putting efforts to ensure that risk management and related processes are
embedded into the operations of the unit;
• Each business unit also has a duly appointed Risk Champion to ensure effective
management of operational risks;
• The leadership and staff of the SIU have discussed and documented the risks facing the
organisation in accordance with SIU Public Management Framework.
• These risks were specifically highlighted as they could potentially affect the SIU’s ability to
achieve its strategy and business plan objectives; and
• Risks were identified from both a high-level strategic and a more detailed operational
perspective.
Top Risks Heat Map
1
2
3
4
67
8
9
10
5
Below are the key top 10 risks that may affect achievements of the strategic goals contained in the programs that were
identified and the appropriate actions to mitigate these risks were also identified and actioned in detailed action log
1. Inability to achieve targets as per the APP and strategic plan
2. Non implementation of remedial actions by the NPA and
other state institutions
3. Inability to cooperate effectively with other law enforcement
entities which delays the investigations
4. Competition with the private sector (those cases were the
state institutions wants quick turn around impacts from
investigations)
5. Delays in Civil Litigation process
6. Low Proclamation flow
7. Inability to collect revenue (high debtors book)
8. Ineffective stakeholder management
9. Non compliance with applicable legislation
10. Inability to provide security over SIU critical information 55p.70
GOVERNANCE: ENTERPRISE WIDE
RISK MANAGEMENT
SIU Annual Report 2016/17 Presentation to PC J & CS
• The Special Investigating Unit (SIU) has an Audit Committee which is consisting
of four (4) Audit Committee members while it is supported by three sub-
governance committees as per the graph below:
• All sub-committees are chaired by independent none executives that are also
reporting to the Audit Committee
5
3 3 3
0
1
2
3
4
5
6
Audit Committee Risk Management Committee Human Resource ManagementCommittee
IT Governance Committee
Number of Meetings
56p.72
AUDIT COMMITTEE REPORT
Continued
• Audit Committee notes with great joy the AG Audit opinion on the AFS and is of the opinion that the
audited AFS be accepted and read together with the report of the AG. The Committee has also
reviewed the performance information as included on the AG report together with the management
letter and has congratulated the Accounting Authority and challenged him to develop a strategy to
maintain this excellent performance.
AUDIT COMMITTEE REPORT
No. Audit Names From To Status
1 Performance Review (EEE) 01 August 2016 30 September 2016 Completed
2 Performance Information Quarterly Two Completed
3 Supply Chain Management 01 August 2016 30 September 2016 Completed
4 Revenue Collection 01 October 2016 15 November 2016 Completed
5 Governance Review 20 January 2017 28 February 2017 Completed
6 Human Resources 15 September 2016 30 October 2016 Completed
7 Screening and financial interest
disclosure
15 February 2017 30 March 2017 Completed
8 Adhoc’s Investigations 01 April 2016 31 March 2017 Completed
9 Follow Up Reviews 01 April 2016 31 March 2017 Ongoing
57SIU Annual Report 2016/17 Presentation to PC J & CSp.72
Continued
5. HUMAN RESOURCE MANAGEMENT
58
HUMAN RESOURCE MANAGEMENT
SIU Annual Report 2016/17 Presentation to PC J & CS
Continued
59p.78
EMPLOYMENT
EQUITY
RACE
AFRICAN COLOURED INDIAN WHITE
TOTAL
GENDER
GENDER PERCENTAGE
FEMALE 152 11 26 67 256 49
MALE 157 24 29 57 267 51
TOTAL RACE 309 35 55 124 523
PERCENTAGE 59 7 10 24
100%
523
404
119
TOTAL STAFF OPERATIONS STAFF SUPPORT STAFF
Staff complement as at 31 March 2017
EMPLOYMENT EQUITY
SIU Annual Report 2016/17 Presentation to PC J & CS60p.78
EMPLOYMENT EQUITY AFRICAN COLOURED INDIAN WHITE
TOTAL PERCENTAGE
GENDERFEMALE MALE FEMALE MALE FEMALE MALE FEMALE MALE
Top Management 0 1 0 0 0 0 0 0 1 1
Senior Management 4 4 1 2 2 2 3 10 28 5
Professionally Qualified 22 49 1 14 4 16 28 41 175 33
Skilled Technical 36 75 5 8 13 11 27 3 178 34
Semi-Skilled 78 28 4 0 7 0 9 3 129 25
Unskilled 12 0 0 0 0 0 0 0 12 2
Total 152 157 11 24 26 29 67 57 523
Percentage 29 30 2 4 5 6 13 11 100%
SIU Annual Report 2016/17 Presentation to PC J & CS
6. FINANCIAL OVERVIEW
61
REPORT OF THE AUDITOR GENERAL
SIU Annual Report 2016/17 Presentation to PC J & CS 62p.86-88
• SIU received a clean, unqualified audit report for the 2016/17 financial year by the Auditor General:
– Audit opinion: ”In my opinion, the financial statements present fairly, in all material
respects, the financial position of the SIU as at 31 March 2017, and its financial
performance and cash flows for the year then ended…”
– Performance information: “I did not identify any material findings on the usefulness and
reliability of the reported performance information for the following objectives…”
– Compliance to legislation: “I did not identify any instances of material non-compliance with
specific matters in key legislation, as set out in the general notice issued in terms of the
Public Audit Act.”
– Internal control deficiencies : “I did not identify any significant deficiencies in internal
control”
AUDIT OPINION
ANNUAL FINANCIAL STATEMENTS
63SIU Annual Report 2016/17 Presentation to PC J & CS
Description Notes 2016/17 2015/16Increase/
(Decrease)
R’000 R’000 %
Income
Grant Income N1 316 732 304 458 4%
CARA Funds N2 427 4 148 -90%
Project Income N3 181 675 174 044 4%
Interest & Other Income N4 15 079 6 971 116%
Other Income N5 4 872 5 095 -4%
Total Income 518 785 494 716 5%
Expenditure
Employee cost N6 (322 683) (300 570) 7%
Debt Impairment N7 (55 310) (62 914) -12%
General Expenses N8 (101 140) (81 314) 24%
Total Expenses (479 133) (444 798) 8%
Surplus 39 652 49 918 -21%
p.91
STATEMENT OF FINANCIAL PERFORMANCE
NOTES TO STATEMENT OF FINANCIAL PERFORMANCE
SIU Annual Report 2016/17 Presentation to PC J & CS 64
ANNUAL FINANCIAL STATEMENTS
• N1: Grant income is determined by National Treasury.
• N2: CARA Funds decreased due to the fact that funds relating to accommodation and rental of ICT
equipment was depleted during the 2016/17 Financial Year.
• N3: Project income is driven by the number of proclamations active. Lesser proclamations were
active in 2015/16 as compared to 2016/17.
• N4: Interest income is income earned on positive bank balances.
• N5: Other Income: This relates to the actual rental paid on behalf of the SIU for the East London
Offices. The amount is dependent on the actual paid by the Department of Public Works.
• N6: Employee costs increases is driven by performance and cost of living adjustments.
• N7: Debt impairment is provided for based on an analysis of the debt outstanding at year end, taking
into account the responses received from State Institutions on follow ups done during the year.
• N8: General Expenses: the increase is due to the annual increase on rental of premises and an
increase in depreciation and amortisation costs relating to PPE.
p.95-130
Statement of Financial Position as at 31 March 2017
2017 2016- Restated
Assets R R
Current Assets
Receivables from exchange transactions 131 068 992 143 028 687
Cash and cash equivalents 293 021 334 242 224 668
Bank balance - Recoveries 25 059 827 30 238 829
449 150 153 415 492 184
Non-Current Assets
Property, plant and equipment 45 346 405 36 990 450
Intangible assets 2 913 843 3 079 642
48 260 248 40 070 092
Total Assets 497 410 401 455 562 276
Liabilities
Current Liabilities
Other financial liabilities 398 538 253 300
Operating lease liability 726 640 743 431
Payables from exchange transactions 24 709 443 23 644 232
Provisions 23 834 116 17 653 005
Payables - Recoveries 25 059 827 30 238 829
74 728 564 72 532 797
Total Liabilities 74 728 564 72 532 797
Net Assets 422 681 837 383 029 479
Accumulated surplus 422 681 837 383 029 479
STATEMENT OF FINANCIAL POSITION
ANNUAL FINANCIAL STATEMENTS
p.90
2017 2016- Restated
R R
Cash flows from operating activities
Receipts
Sale of goods and services 143 650 682 188 167 389
Grants 316 732 000 304 458 000
Interest income 15 051 512 6 929 595
Other receipts 27 605 41 000
475 461 799 499 595 984
Payments
Employee costs (322 683 382) (300 569 643)
Suppliers (87 787 533) (68 843 614)
(410 470 915) (369 413 257)
Net cash flows from operating activities 64 990 884 130 182 727
Cash flows from investing activities
Purchase of property, plant and equipment (14 194 218) (11 913 734)
Proceeds from sale of property, plant and equipment - 2 648 624
Net cash flows from investing activities (14 194 218) (9 265 110)
Net increase/(decrease) in cash and cash equivalents 50 796 666 120 917 617
Cash and cash equivalents at the beginning of the year 242 224 668 121 307 051
Cash and cash equivalents at the end of the year 293 021 334 242 224 668
CASH FLOW STATEMENT
ANNUAL FINANCIAL STATEMENTS
p.93
ANNUAL FINANCIAL STATEMENTS
STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS
Notes Approved Budget Adjustments Final Budget Actual Amounts
Differences between final
budget and actualR R R R R
Revenue
Revenue from exchange transactions
Rendering of services N1 250 908 000 (87 585 995) 163 322 005 181 675 671 18 353 666
Interest received 5 000 000 9 129 256 14 129 256 15 051 512 922 256
Other income - - - 27 605 27 605
Total revenue from exchange transactions 255 908 000 (78 456 739) 177 451 261 196 754 788 19 303 527
Revenue from non-exchange transactions
Transfer revenue
Government grants & subsidies 316 732 000 - 316 732 000 316 732 000 -
CARA funds - 426 739 426 739 426 739 -
Rental of premises paid on behalf of SIU N2 - - - 4 871 910 4 871 910
Total revenue from non-exchange transactions 316 732 000 426 739 317 158 739 322 030 649 4 871 910
Total Revenue 572 640 000 (78 030 000) 494 610 000 518 785 437 24 175 437
Expenditure
Employee related costs N3 (369 269 000) - (369 269 000) (322 683 382) 46 585 618
Lease rentals on operating leases (44 566 523) 5 000 000 (39 566 523) (38 116 495) 1 450 028
Depreciation and amortisation (8 867 000) 1 123 000 (7 744 000) (5 929 160) 1 814 840
Debt Impairment N4 - - - (55 309 869) (55 309 869)
Loss on the disposal of assets - - - (74 900) (74 900)
Repairs and maintenance (1 010 000) 500 000 (510 000) (398 777) 111 223
Professional services (450 000) - (450 000) (480 174) (30 174)
General expenditure N5 (148 477 477) 71 407 000 (77 070 477) (56 140 322) 20 930 155
Total expenditure (572 640 000) 78 030 000 (494 610 000) (479 133 079) 15 476 921
Surplus before taxation - - - 39 652 358 39 652 358
Actual Amount on Comparable Basis as
Presented in the Budget and Actual
Comparative Statement
- - - 39 652 358 39 652 358
p.94
FINANCIAL RESULTS OVERVIEW : NOTES TO BUDGET VS. EXPENDITURE
68
N1: Rendering of Services
Revenue from services rendered is based on the recovery of fees from State Institutions for services rendered under issued Proclamations. The
actual amount recovered is slightly over the final budgeted amount for the 2016/17 financial year. For the 2016/17 financial year, there were 13 new
proclamations issued and as at 31 March 2917, the SIU had 45 active Proclamations
N2: Rental of premises paid on behalf of the SIU
Rental of premises paid by the Department of Public Works on behalf of the SIU for East London office was historically not budgeted for. The SIU
will future budget for this item.
N3: Employee Related Costs
The underspending on employee related costs is due to the fact that the costs relating to vacancies were budgeted for the whole year as there was
no indication/projection of when the positions would be filled. The cost of these vacancies have not been incurred as they are still vacant. The
recruitment process has been placed on hold to enable the SIU’s organisational structure review process to be finalised in 2017/18, and the resulting
vacancies appropriately filled.
N4: Debts Impairment
The SIU did historically not budget for debt impairment due to the fact that the analysis of the amounts to be impaired is only conducted at the end of
the financial year. going forward the SIU will project an amount to be impaired at the beginning of the financial year, based on the projected amount
to be invoiced and budget it accordingly.
N5: General Expenses
The underspending under general expenses is due to the fact that the SIU anticipated incurring expenses relating to moving to new offices and fitting
it out in the various regional offices where leases have expired. However, the relocation of offices has not materialised in the 2016/17 financial year
and will be incurred in the 2017/18 financial year.
ANNUAL FINANCIAL STATEMENTS
p.130
IRREGULAR EXPENDITURE
69SIU Annual Report 2016/17 Presentation to PC J & CS
ANNUAL FINANCIAL STATEMENTS
Irregular Expendire Incurred 35 361 497 10 297 270 14 290 149 6 090 831 2 507 247 1 799 023
Irregular Expendire Condoned - - - - 590 422 -56 710 317 * -4 608 936
Cumulative Balance 35 361 497 45 658 767 59 948 916 65 449 325 11 246 255 8 436 342
* The SIU did an extensive investigation of irregular expenditure in line with National Treasury guidelines for application to condone such irregular expenditure to the
relevant authorities. A substantial part of the irregular expenditure was condoned after the investigations were completed. Investigations for the remaining part of the
irregular expenditure are underway and application for condoning will be made where applicable.
• SIU has reported irregular expenditure of R 1.8 m for the 2016/17 financial year as
compared to R 2.5m in 2015/16 financial year.
• The SIU is in a process of regularising all contracts that are considered to be
irregular to ensure that irregular expenditure is not incurred anymore.
p.127-128
IRREGULAR EXPENDITURE
Continued
70SIU Annual Report 2016/17 Presentation to PC J & CS
Description 2016/17 2015/16
Proper SCM Processes not followed when extending the lapsed contract (Nelspruit Lease) 0 614 205
No proper deviation in place for deviating from normal SCM processes (Travel Management )392 287 345 392
Service Provider used without following proper SCM process (Insurance for movable assets) 842 890 948 037
Service provider used without following proper SCM processes (Reference Checks) 41 285 382 465
Service provider used without following proper SCM processes (Courier Services)307 329 196 755
Promoted employees paid before written approval by Head of the Unit0 20 393
Services of legal counsel procured without following SCM processes 215 232 0
Totals per Financial Year 1 799 023 2 507 247
ANNUAL FINANCIAL STATEMENTS
p.127-128
FRUITLESS AND WASTEFUL EXPENDITURE
2016/17 Financial year 2016/17 2015/16
Interest payment to SARS for late payment of PAYE 0 4 690
Payment of traffic fines incurred by employees 506 4 090
Opening Balance 2016/178780
2016/17 Total 9 286 8 780
SIU Annual Report 2016/17 Presentation to PC J & CS 71
ANNUAL FINANCIAL STATEMENTS
• SARS: During February 2015, SIU ran two payrolls with the second run being afterthe February month end. This resulted in employees tax for this period being paidafter the required due date.
• Traffic Fines: these costs were incurred by SIU members and had to be settled by theSIU when the unit was trying to renew the annual vehicle licences. The cost will berecovered from the members.
p.127
OUTSTANDING DEBTORS ANALYSIS
Description 2016/17
R’000
2015/16
R’000
Gross Trade Debtors 418 257 374 389
Less: Provision for impairment (288 480) (233 480)
Net Trade Debtors 129 777 140 909
SIU Annual Report 2016/17 Presentation to PC J & CS 72p. 109-110
ANNUAL FINANCIAL STATEMENTS
Receipts : 1 April 2017 to 30 September 2017
Payment Split Amount Paid
R’000
Invoices up to 31/03/2017 63 250
2017/18 Invoices 2 997
Total Receipts 66 247
DEBT RECOVERY STRATEGY
SIU Annual Report 2016/17 Presentation to PC J & CS 73
• The SIU embarked on an intensive exercise to recover outstanding debts;
• The SIU submitted reminder letters to the State Institutions reminding them of their
legal obligation to settle debts incurred for services provided by the SIU;
• Where further substantiating information is required by the institutions, the SIU now
provides such information and investigation outcomes to facilitate payment;
• National Treasury also assisted in by submitting Letters to affected State
Institutions; and
• Reminder letters were also sent from the Minister of the Department of Justice and
Constitutional Development to remind State Institutions to settle their debts.
74SIU Annual Report 2016/17 Presentation to PC J & CS
7. ORGANISATIONAL REVIEW
The State’s preferred and trusted forensic investigation and litigation agencyVision
Mission We are the State’s preferred provider of forensic investigating and litigating services working together
with other agencies in the fight to eradicate corruption, malpractice and maladministration from
society.
How will we make an impact?
Strategic
Goals
To achieve appropriate legal outcomes
against perpetrators of maladministration
and corruption
To proactively influence the systemic
and behavioural root causes of
maladministration and corruption
Stabilise operating environment
Reach growth
through operational
excellence
Establish
governance and
accountability
Staying relevant
within a changing
environment
Strategic
Focus
ORGANISATIONAL REVIEW CASE FOR CHANGE
75
ORGANISATIONAL REVIEWNEW STRATEGIC FOCUS
To achieve appropriate legal outcomes
against perpetrators of maladministration
and corruption
To proactively influence the systemic and
behavioural root causes of maladministration
and corruption
1. To ensure that each case is
centrally reported and monitored
2. To ensure that each allegation is
assessed in accordance with
standardised criteria
3. To conduct forensic investigations
according to predetermined
standards
4. To initiate the implementation of
legal recommendations
5. To increase legal outcomes based
on civil and other proceedings
1. To direct strategic decision
making processes through data
analysis
2. To assist State institutions with
the prevention of the
reoccurrence of reported cases
3. To increase public awareness
about targeted anti-corruption
behaviour
Detailed Strategic Goals
76
Workstream 1: Strategy and Organisation Design:
• Case for change, Long-term strategy that is linked to accountability, Value Chain for SIU,
• Value Chain for the Industry, Operating Model, Macro structure, Micro structure, and High-
level capacity modelling
Workstream 2: Job Design and Evaluation/Remuneration and Incentives:
• Job architecture and libraries, Career pathing, Job descriptions and titles, Job evaluations
• Remuneration strategy, policy and plan, Incentive strategy, policy and plan
ORGANISATIONAL REVIEW:
FOCUS AREAS
SIU Annual Report 2016/17 Presentation to PC J & CS
Workstream 3: Culture, Change and Engagement
• Internal stakeholder map, Change management strategy and plan, High impact session with
leadership
• Change agent network support, Communication strategy and plan, Define desired culture,
Culture survey and report
77
ORGANISATIONAL REVIEW:
NEW VALUE CHAIN
Receive an allegation
Register Feasibility Scoping Proclamation Planning of
investigation
Remedial Action Reporting Evaluate
investigation Prevent
reoccurrence
Monitor remedial
action
High Level Value Chain
Functional Areas
Case
Registration
and Monitoring
Case
Assessment
Case
Management
Forensic
Legal
Assessment
Civil Litigation
Assessment
Forensic
Analysis
Market Data
Analytics
Prevention
and
Advisory78
79
ORGANISATIONAL REVIEW NEW OPERATING MODEL
REGIONAL CASESCENTRAL SUPPORTNATIONAL CASES
Allegation Registration
Case Assessment
Mark
et
Data
Analy
tics
Business DevelopmentBusiness Development
Monitor and Evaluate
Public Awareness Community Outreach
Core Case Investigation
Remedial Action
Set direction
Day-to-day support
services
En
ab
lem
en
t
Case Management
Remedial Action
Specialist oversight
Policy and procedures
Operational Reporting
Bu
sin
ess
Ove
rsig
ht
Sta
kehold
er
Managem
ent
Policy and procedures
Specialist support
Governance and Risk
Man
da
ted
Serv
ice
De
live
ryP
reve
nti
on
Case Management
Core Case Investigation
Advisory Services Advisory Services
Specialised Investigating Services
Specialist resource
allocation
Set and oversee policy and
standards
Civil Litigation
Day-to-day support
services
Operational Reporting
Technical oversight
1 2
Create ring-
fenced unit for
national cases
Empower
regional
accountability
and business
development
Standardise the quality of
service delivery3
CHALLENGES & MITIGATION STRATEGY
CHALLENGES MITIGATION STRATEGY
long turnaround times The new strategy is to obtain proclamations as specific as possible, where matters will only be
investigated that relate directly to the allegations that have been received.
For long multi-year running proclamations (investigations), interim reports will be submitted to the
Presidency based on completed focus areas as per the schedule of the proclamation.
Non – Payment by some State
Institutions
• Provide regular investigations progress update to State Institutions to facilitate payment.
• Regular contact with CFO’s and Accounting Authorities of relevant State Institutions
Delay in finalizing civil matters • Re-establish the Special Tribunal
• Interaction with Deputy Judge Presidents to expedite set down of civil cases .
Implementation of referrals by
the NPA
• Signed Memorandum of Understanding with NPA which includes monitoring and evaluation
structure
Feedback from State
Institutions regarding the
implementation of referred
disciplinary actions and
systemic recommendations.
• The conclusion of MoU’s with DoJ & CD, Presidency and the NPA and the implementation of
monitoring and evaluation committees to ensure implementation of findings, recommendations and
proposed remedial actions.
Limitation in dealing with pre-
proclamation activities
• SIU has formulated legislative amendments which the DoJ & CD are processing more specifically
ensuring the promulgation of amendments which will cover pre-proclamation investigations
Un-even spread of
proclamations
• Improve regional business development efforts and stakeholder engagements. 80
81
CONCLUSION
SIU Annual Report 2016/17 Presentation to PC J & CS
The SIU will continue to pursue good
governance practices, excellent performance
and clean audit outcomes.
SIU Annual Report 2016/17 Presentation to PC J & CS
THANK YOU
ADV. ANDY J.L MOTHIBI
HEAD OF SPECIAL INVESTIGATING UNIT
www.siu.org.za
82