PSC releases a Fact Sheet on the Financial Disclosure Framework for the 2011/2012 Financial Year

16 March 2014

  1. BACKGROUND
    The Public Service Commission (PSC) has since 1999 recognised the importance of managing conflicts of interest of the public servants. To this end, the PSC has developed a Financial Disclosure Framework (FDF) for the Senior Management Service (SMS) which is applied on an annual basis. In line with its Constitutional Mandate, the PSC has compiled a Fact Sheet on the Financial Disclosure Framework to provide an overview of the extent of compliance with the Framework in respect of the 2011/2012 financial year. The Fact Sheet provides a statistical analysis of the financial disclosure forms that were received by the PSC by the due date of 31 May 2012. It also reflects on the extent of senior managers involvement in private interests, such as directorships and partnerships in private companies and close corporations. The PSC relied on the Companies and Intellectual Commission (CIPC) database when assessing the involvement of senior managers in private business interests.

  2. KEY FINDINGS
    The report reveals that the compliance rate by the due date in the national and provincial departments has improved from below 50% between 2007/2008 and 2009/2010 financial years, to 75% in the 2011/2012 reporting period. There has been a slight increase of 7% compliance in the current financial year compared to the previous financial year (2010/2011). However, the PSC believes that a 75% compliance rate is still not satisfactory and only a 100% compliance rate would be satisfactory.

  1. Submission of financial disclosure forms by 31 May 2012
  2. 1.1. National departments

    Table 1: Submission of financial disclosure forms for the 2011/2012 financial year as at 31 May 2012

     NATIONAL DEPARTMENT/ PROVINCE  NO. OF SMS MEMBERS NO. OF FORMS RECEIVED NO. OF FORMS OUTSTANDING PERCENTAGE RECEIVED
    National Departments 5199 3468 1731 67%
    Eastern Cape 621 508 113 82%
    Free State 331 212 119 64%
    Gauteng 648 641 7 99%
    Kwazulu-Natal 520 465 55 89%
    Limpopo 494 472 22 96%
    Mpumalanga 299 287 12 96%
    Northern Cape 227 227 0 100%
    North West 312 83 229 27%
    Western Cape 358 358 0 100%
    OVERALL PROVINCIAL TOTAL 3810 3253 557 85%
    COUNTRY TOTAL 9009 6721 2288 75%

    The PSC found that of the overall compliance rate as at 31 May 2012 of 75%, national departments were 67% compliant, and provincial departments were 85% compliant. The Northern Cape and Western Cape are the only two Provinces that achieved a 100% compliance rate by the due date.

    The PSC is concerned that there are some departments, both at national and provincial level that did not submit a single financial disclosure form to the PSC by the due date of the 31 May 2012. The report shows that seventeen (17) national departments did not submit a single financial disclosure form to the PSC by the due date.

    1.2. Provincial departments
    The study reveals that a total of fourteen (14) provincial departments located within three (3) provinces did not submit their financial disclosure forms by the due date of 31 May 2012. They are North West Province (8 departments), followed by the Free State Province (4 departments) and KwaZulu Natal Province (2 departments). These departments failed to comply with the Framework despite the efforts taken by the PSC to remind Executive Authorities (EAs) to submit copies of the forms on which the designated employees disclosed their financial interests by no later than 31 May. The EAs were advised in the reminder letters that, disciplinary action should be taken against defaulting SMS members, in terms of the Disciplinary Code and Procedures as contained in the SMS Handbook.

    2. Submission of financial disclosure forms by Directors-General
    The compliance rate by the due date of 31 May 2012 of the 2011/2012 financial year in respect of Directors-General (DGs) for national and provincial departments were not satisfactory. As at 31 May 2012, of the fifty-two (52) DGs in national departments and provincial administrations, only thirty-three (33) submitted their financial disclosure forms by the due date. The financial disclosure forms of 19 (37%) DGs were outstanding by the due date. In three (3) cases of the nineteen (19) outstanding forms, the DGs had either been placed on special leave or suspended. This, however, is not a valid reason for failure to submit a financial disclosure form. These officials are still subject to all the rules and regulations that apply to the Public Service. The EAs have, therefore, the responsibility of ensuring that the officials concerned submit their financial disclosure forms.

    The non-submission and late submission of disclosure forms by DGs is a cause for concern. As Accounting Officers, DGs and HoDs should set the standard for ethical behaviour in departments. They should promote transparency by, inter alia, submitting their financial disclosure forms timeously and encourage officials within their respective departments to do likewise. The PSC would like to commend all DGs and HoDs who have submitted their financial disclosure forms by the due date.

    1. CONCLUSION
      There has been a marked improvement in the submission rate by the due date for the 2011/2012 financial year. This significant increase, although still not satisfactory, could be attributed to the strategies adopted by the PSC to assist departments in complying with the regulatory requirement for EAs to submit financial disclosure forms of SMS members within their respective departments by 31 May 2012. The PSC is, however, of the opinion that a 100% submission rate by the due date could be achieved if there is discipline among SMS members.

    Issued by the Public Service Commission

    For enquiries, please contact:
    Mr Ricardo Mahlakanya; Deputy Director: External Communication; Tel: 012- 352 1070; Cell: 079 769 7955; Email: ricardom@opsc.gov.za; or Mr Humphrey Ramafoko; Director: Communication and Information Services; Tel: 012- 352 1196; Cell: 082 782 1730; Email: humphreyr@opsc.gov.za.

    National Anti-Corruption Hotline: 0800 701 701

 

 

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