N Balfour: Anti-corruption efforts and Jali Commission of
Inquiry

16 October 2006

Management of Correctional Services
Journalists present here and in Pretoria
Invited guests and representatives of our stakeholders
Ladies and gentlemen

We are gathered here today to mark yet another milestone in our fight
against fraud and corruption as Correctional Services. We are giving an update
on our overall progress in dealing with fraud and corruption which includes the
release of the executive summary of the Jali Commission, as well as kicking off
the "naming and shaming" campaign of our anti-Corruption Strategy.

The naming and shaming campaign aims to expose elements that are bent on
compromising our system and threaten public safety through unethical behaviour.
The campaign is informed by our own anti-corruption interventions undertaken
including the Jali Commission of Inquiry.

Background to the Naming and Shaming Campaign

We committed ourselves in the anti-corruption strategy to intensify the
awareness about the scourge, the rates of detection, investigation,
disciplinary actions and prosecutions, to demonstrate clearly that there is no
more room for fraud and corruption in Correctional Services. These together
will rid this department of its historical legacy.

This legacy is well-known and documented for its creation of secretive
prison systems that were notorious for being a breeding ground for fraud,
corruption and unethical behaviour. It is therefore a historical reality that
some corrupt officials exploited this environment to advance fraud and
corruption with impunity.

Multi-pronged interventions - 2001 onwards

Many of these challenges largely remained during the first five years of the
democratic dispensation thus leading to a number of interventions instituted by
government from 1999 to date with growing degrees of success.

These included the following:

* Department of Public Service and the Public Services Commission
Enquiries
* the deployment of strong management to stabilise the then unstable and
volatile environment led by Commissioner Linda Mti
* the establishment of the Jali Commission of Inquiry
* the formation of formidable partnerships with the Special Investigation Unit
that assisted to build internal institutional capacity to fight corruption and
fraud.

In essence some of these interventions ran concurrently demonstrating a
robust attack on and an offensive against fraud and corruption from various
fronts.

When we gave our last comprehensive report in September 2005 we promised
that when the legal questions are dealt with in cases implicating officials of
the department involved in acts of corruption and fraud, we will name and shame
those whose cases have been concluded. Even concluded cases emanating from the
Jali Commission will be included.

"Naming and Shaming":

We have decided to strengthen our onslaught against unethical behaviour,
fraud and corruption by openly and publicly naming those found guilty and
dismissed since the institution of the multi-pronged interventions, including
the Jali Commission of Inquiry. Many of these cases therefore also include
those not directly related to the Commission's investigation, but which were
pursued by our own anti-corruption and crime-busting unit - the Departmental
Investigation Unit (DIU).

In 2005 alone, 31 officials were dismissed for various offences ranging from
fraud, corruption to smuggling of illegal items into correctional centres.
Thirteen of these were dismissed after their appeals have been confirmed whilst
18 still have pending appeals.

These are officials who do not deserve to be custodians of one of our
nation's noble mandates of correcting offenders who wronged society.

In respect of cases pursued which emanated from the recommendations of the
final report of the Jali Commission of Inquiry, 48 investigations were
instituted, 7 of which are still ongoing. These implicated 109 correctional
officials, 7 of whom are part of the Senior Management Service (SMS).

Our internal disciplinary hearings into the MEDCOR fraud, directly
implicated 96 members whilst others passed away or resigned. Two correctional
officials have been dismissed whilst appeals in respect of other cases are
pending. These officials were also criminally charged and they will appear in
the criminal court in 8 groups as from 6 November 2006 to 21 May 2007.

Two officials have already been found guilty in the criminal cases related
to the MEDCOR fraud. In terms of naming and shaming campaign, 13 members of the
Department were dismissed after appeals have been confirmed. The names will be
forwarded to you tomorrow. Furthermore, the following members were dismissed
with appeals pending:

There are currently 52 cases that are being dealt with internally which
relate to serious cases of theft, fraud, corruption and serious
maladministration. It needs to be mentioned that the department has had a 98%
of conviction rate in fraud and corruption cases it dealt with internally, in
terms of its disciplinary code enforcement, while on all disciplinary cases of
staff our conviction rate is 85% - with 1 298 convicted out of 1 529 official
subjected to disciplinary hearings.

In terms of criminal cases, about 44 of these were referred to the National
Directorate of Public Prosecutions (NDPP) with 20 cases successfully
prosecuted. A further 11 cases emanating from the final report of the Jali
Commission, are to be referred to the NDPP.

A list of names of officials dismissed, including those who have pending
appeals, is attached to this document, including offences committed and
sanctions applied.

Jali Commission of Inquiry and the department's response

The Commission's findings and recommendations are welcomed for two main
reasons:

1. They reaffirm that we are on the right direction in building an ethical
and secure correctional system that leaves no space for fraud and corruption,
as over 60% of the recommendations made have either been or are being
implemented. These include the creation of a productive labour relations
environment, investigation and code enforcement capacity internally,
independent parole system with built-in reviews, improved centre security, the
introduction of the 7-day working week and reduction of overtime, recruitment
process improvements, etc.

2. They will help sharpen our interventions as they identify some systemic
weaknesses we need to address in order to close any loopholes while a few
recommendations may not be feasible or necessary.

These issues include strategies of dealing with gangs, conversion of
sentences and changing C-Max category facilities.

The findings of the Commission, its recommendations as well as a detailed
response of the Department are attached for your perusal. We are publishing,
for now, part of the report that does not 'name' people alleged to have
committed fraudulent and corrupt activities because most have not been given a
chance to reply to the Commission on allegations levelled against them, nor had
charges put to them in a court of law. In the interest of the Department and
the affected individuals or groups, their names will only published as and when
they are convicted or charged in court. Therefore the part of the report that
will be provided does not contain these names.

A Centralised Departmental Task Team composed of 20 members from the
Departmental Investigation Unit, the Code Enforcement Unit and the regions has
been established to focus on dealing with the remaining cases of the Jali
Commission that still have to be investigated and dealt with. Periodical
progress reports will be given to the media and the public.

Mobilisation against fraud and corruption

Our programme is intensifying and is progressively gaining the trust of both
internal and external public and stakeholders as evidenced by the growth of
reporting suspected cases to our anti-corruption hotline - 0800 701 701 by over
30% from 2004 to 2005. We implore all citizens of our country, our
stakeholders, officials and offenders to continue reporting fraud and
corruption to this hotline. Your anonymity and confidentiality is guaranteed
and rest assured we will act on the information you have supplied. Our
commitment of support is also extended equally to those who may want to openly
testify and become witnesses during criminal and disciplinary proceedings. We
are exploring a witness protection programme for our centres as recommended by
the Jali Commission.

We will sustain this campaign as a warning to any potential fraudster that
your name will be listed and published to facilitate your blacklisting in the
public services and elsewhere.

Communities and stakeholders across South Africa are being mobilised and
engaged to actively form part of this crusade against crime and corruption in
Correctional Services. The partnerships created with society at large will
definitely enhance our unwavering efforts of rooting out the criminal elements
within our midst.

Through these efforts, we are confident that corrupt individuals and
fraudsters will have no breathing space within our system.

Our fight against corruption is intensifying day by day and this should
serve as a warning to anyone attempting to commit corruption that we will 'nail
you, deal with you thoroughly' and then 'name and shame' you.

Conclusion

Let me unequivocally express my gratitude to Commissioner Linda Mti for his
visionary and solid leadership that has ensured a turnaround of this department
and taken it to higher levels unprecedented in its history. We owe to the
National Commissioner that today our anti-corruption initiatives are bearing
fruitful results and the department is on the correct path and on course in its
transformation agenda.

I also wish to thank the senior management of the department and staff who
have become the key pillar upon which this campaign stands. Without your active
participation and involvement in exposing and combating corruption, this
campaign would have been in vain.

A special word of gratitude also goes to our own brainchild and
anti-corruption busters - the Departmental Investigation Unit - as well as the
Directorate of Special Operations' Special Investigation Unit for turning the
heat on corruption and making this commitment of exposing corruption and its
instigators, a reality.

Issued by: Department of Correctional Services
16 October 2006