7 minute read
Prevention is better than cure
by kwedamedia
Prevention is better than cure, or better still, far less costly than investigation and prosecution. Auditing is a crucial component in maintaining the integrity of the national system and preventing corrupt practices.
Auditors play a crucial role within organisations as they represent the public interest and oversee the entity's adherence to established standards. The scope and significance of auditing continues to expand.
The role of auditors in the fight against corruption, however, has been ambiguous in some parts of the world. Academics argue that there is an "expectation gap" concerning the responsibility of auditors in detecting corruption.
The infamous FIFA football corruption scandal brought to light the criticism that auditors face for their failure
There is a direct link between auditing failure and corruption, which is not a victimless crime.
Alapseinauditing canhavecatastrophic consequencesin society
For instance, consider the impact of a company that must report accurate data on its greenhouse emissions to a department such as Environmental Affairs. The manipulation of data by internal auditors could lead to a polluted climate, robbing future generations of a clean environment.
A robust internal auditing system is necessary as we strengthen our corruption prevention architecture and law enforcement agencies. The recently amended Public Audit Act has introduced the concept of material irregularity.
During an audit process, auditors must satisfy themselves, through various tests of transactions, account balances and control systems, that there has been no non-compliance or contravention of a financial statute.
They must also guarantee that the organisation is not subjected to fraud that can result in financial loss or the loss of public assets, or that the organisation is not prevented from offering specific services because of financial losses.
The auditor-general has the power to refer any material irregularity that is found or suspected during an audit conducted under this act to a relevant public authority for investigation.
The auditor-general can also take appropriate legally binding remedial action or issue a certificate of debt where an accounting officer or accounting authority has failed to comply with the remedial measures.
Activating preventative controls across key areas of accountability will eliminate the need to invoke these new powers.
Such controls are proactive, detect most material irregularities that could lead to financial loss, and are relatively cheaper than relying on investigations triggered after the money has changed hands in unreliable or transparent ways.
Preventative controls promote transparency, strengthen accountability, and are predictable with known expected outcomes. In essence, preventative controls are an invincible fortress against all possible abuses of the public purse.
Public trust in the government has declined in recent years due to public scandals and allegations of corruption. These events have exposed loopholes that allowed private interests to influence political decision-making.
TheStateCapture Commission,in particular,highlighted issues with the current systemandtheneedfor greatertransparency andaccountability
As a result, democratic institutions like parliament have been scrutinised and questioned for their ability to provide adequate oversight.
Auditors play a critical role in ensuring that government processes are effective and that transactions yield the desired value. However, it is essential to consider what happens when auditors fail or act unethically. While corruption by law enforcement agencies is appropriately classified as such, auditors who fall short are frequently branded with more mild terminology, such as "accounting irregularities."
Fighting corruption is a top pri ority for the government, but it is a complex issue that cannot be resolved overnight. We must build institutions that can effectively investigate and prosecute corruption cases and ensure the justice system can support these efforts. The recent measures taken to combat corruption in South Africa, such as the introduction of the procurement bill, are a positive step in the right direction.
The Investigating Directorate Against Corruption plays a crucial role in this effort. As per the constitution, the National
Prosecuting Authority is responsible for conducting criminal proceedings on behalf of the state and carrying out investigative and forensic functions. Establishing the Hawks within the SAPS structure was a legitimate response by the government to enhance the police force's capacity to investigate national priorities and other crimes.
President Ramaphosa's announcement in the State of the Nation Address will come to pass once the amendment is approved, establishing the Investigating Directorate Against Corruption a permanent feature of our nation’s anti-corruption law enforcement initiatives.
The goal is to ensure the effective implementation of the recommendations of the State Capture Commission.
The Directorate for Priority Crime Investigation investigates corruption-related crimes uncovered by various commissions, including the South African Revenue Service and Public Investment Corporation.
Adopting a prosecution-led investigation model is the most effective way to prosecute crimes like corruption, as international best practices demonstrate. The new bill will allow the NPA to apply the experience gained from South Africa's efforts to tackle high-level corruption.
The bill is a significant step towards enhancing the NPA's independence and ability to prosecute high-level crimes. Creating a specialised entity within the NPA staffed with trained individuals who enjoy the requisite level of independence, resources and security of tenure will enable tackling corruption head-on.
Thisbillisacrucialstep towardsstrengthening South Africa's anticorruptionefforts
It aims to hold those who engage in corrupt practices accountable for their actions.
The Department of Justice and Constitutional Development has released recommendations for reforming whistleblowing laws.
The recommendations are based on thorough research and comparative analysis of whistleblower systems in various countries worldwide, including the United States, the United Kingdom, New Zealand, Canada and Australia.
The Department also evaluated whistleblower systems in five African nations - Uganda, Namibia, Kenya, Tanzania, and Ghana. The research and recommendations follow President Cyril Ramaphosa's response to the Commission of Inquiry into Allegations of State Capture, Corruption and Fraud in the Public Sector on 24 October 2022. The President emphasised the importance of whistleblowing in fighting corruption and the need to protect whistleblowers from victimization, prejudice or harm. >
Governmentauditing is a cornerstone of goodpublicsector governance;providing unbiased,objective assessments of whether publicresources areresponsiblyand effectivelymanagedto achieve intended results.
The document seeks to evaluate the current legislation on protected disclosures and witness protection in South Africa and identify any gaps or shortcomings in the system.
It proposes several measures to enhance the protection of whistleblowers, including expanding the scope of the Protected Disclosures Act beyond the employer-employee relationship, establishing a fund to support whistleblowers, and granting greater authority to the South African Human Rights Commission in handling protected disclosures.
These changes could have a positive impact on promoting transparency and accountability in various sectors.
Furthermore, the discussion document recommends that whistleblowers be offered the necessary legal and emotional assistance to help them navigate the complicated legal system and deal with the emotional challenges that come with it.
These recommendations aim to strengthen accountability and transparency, provide a haven for whistleblowers, and motivate more individuals to expose social injustice and wrongdoing.
Transparency International has noted that robust whistleblower protection laws and public scrutiny are crucial in protecting citizens and institutions from corruption.
With the ability to come forward and report cases to their employer, authorities, or civil society, individuals are empowered to prevent or expose potential corruption. By creating
a culture of transparency and accountability, we can build a brighter future for all.
As the process unfolds, we are actively collaborating with various stakeholders to establish a provisional framework to implement some of the proposed recommendations and offer support to whistleblowers who have suffered retaliation.
