Labour on Compensation Fund and KPMG joining forces to combat
crime

14 March 2006

In a bid to combat corruption and dishonesty, the Compensation Fund (CF) has
joined forces with the KPMG Ethics Line to set up a hotline that staff members
can call to report fraud or any other unethical behaviour being committed by
fellow colleagues.

Recent surveys have confirmed that fraud is still a major problem for
businesses and employees within organisations continue to pose the single
largest fraud risk. Studies conducted also revealed that 88 percent of fraud
incidents are perpetrated by employees, either acting on their own or in
concert with third parties.

However, it should be noted that 46 percent of fraud cases that are
successfully resolved can be attributed to tip-offs from staff members and
trading partners.

The Fund has taken on a zero tolerance approach to corruption and is well on
the way to wiping out unethical behaviour in the workplace. Employees will play
an important role in assisting the CF to stop fraudsters and continue on its
quest for high standards of corporate governance.

“We are taking corruption very seriously and we will not allow fraudsters to
continue with their unethical practices. Corruption hinders service delivery to
our clients and various stakeholders so it has to be stopped, whatever it
takes,” said Labour Department spokesperson Mokgadi Pela.

The hotline will not only focus on fraud but will also serve as a medium
from which employees can report any form of unethical behaviour such as sexual
harassment and racial discrimination.

The Ethics Line operates independently and callers are guaranteed anonymity.
This means that the Fund cannot demand that the identity of the caller be
revealed. The call centre is secure and the public does not know the location
thereof.

A major problem in the fight against corruption in the workplace is the
reluctance of workers to “blow the whistle” because of a fear of being
intimidated, victimised or worse, being personally attacked. It is for this
reason that all employees making use of the Ethics Line to report misconducts
be protected by the Protected Disclosures Act, also known as the Whistle
Blowers Act. This Act promotes good, accountable, transparent public and
corporate governance by encouraging employees to speak out against corruption,
unethical behaviour and breaches of the law in the workplace.

“Much as we want to curb corruption, the well being of employees is of
paramount importance hence all whistle blowers are guaranteed anonymity,” said
Pela.

Enquiries:
Mokgadi Pela
Cell: 082 808 2168

Issued by: Department of Labour
14 March 2006