ROUNDTABLE ON FINANCIAL MISCONDUCT THEME: “What

Transcript:ROUNDTABLE ON FINANCIAL MISCONDUCT THEME: “What:
ROUNDTABLE ON FINANCIAL MISCONDUCT THEME: “What constitutes Financial Misconduct: Raising awareness on the reporting of Financial Misconduct and its implications in the Public Service” 28 February 2013 PRESENTATION OUTLINE Introduction Legislative Framework on Financial Misconduct Reporting by Departments on Financial Misconduct The PSC’s roles and responsibilities relating to Financial Misconduct Challenges encountered Implications for the Public Service Conclusion 2 The global economic position has deteriorated significantly in recent years. “Great recession.” In South Africa the great recession has led to the need to tighten the management of the fiscus, including financial resources in the Public Service. The recent rating downgrades will increase the cost of capital to government. All these factors suggest the need for effective, efficient and economic management of public resources. INTRODUCTION 3 INTRODUCTION cont… Government has a responsibility towards its citizens to expend public finances in an effective, efficient and economic manner. In order to do so, sound financial management practices are required in terms of legislation, thus placing a high burden of accountability on all civil servants. As the custodian of Good Governance, the Public Service Commission (PSC) exercises its powers and functions in the interest of the maintenance of effective and efficient administration and a high standard of professional ethics in the Public Service. The PFMA read in conjunction with the Treasury Regulations, compel accounting officers of departments to report on the outcome of the disciplinary proceedings relating to financial misconduct, to amongst others, the PSC. In view of this, the PSC has since the 2001/2002 financial year, published reports on financial misconduct. 4 INTRODUCTION cont… It is required that an Accounting Officer of a department must exercise all reasonable care to prevent and detect unauthorised, irregular, fruitless and wasteful expenditure. The Accounting Officer is further required to recover losses or damages resulting from such acts, and keep records of such. Central to the above, it is vital that we share a common understanding of what constitutes financial misconduct. The National Treasury will talk more on what constitutes financial misconduct and share a few examples with us. This roundtable will enable all role players to interact, debate and share experiences on amongst others, the reporting on financial misconduct and determine a way forward to deal with the challenges currently encountered. 5 Section 81 of the PFMA “(1) An accounting officer … commits an act of financial misconduct if that accounting officer willfully or negligently- (a)