officials to disclose business interest
23 March 2006
Following the Auditor-Generalâs report to Parliament last week, some
sections of the media reported that more than 50 000 senior public officials
had not complied with the countryâs civil service rules. According to the
Amended Public Service Regulation of 2005, only designated employees are
required to submit financial disclosures. Designated employees means any
members of the Senior Management Service (SMS) and any other person in terms of
the section 36(3) of the Public Finance Management Act (1999).
According to the Auditor-Generalâs Report, "a total of 50 233 non-designated
employees were identified as directors and/or members of companies and/or close
corporations". The Auditor-Generalâs Report further stipulates that "every
designated employee shall, not later than 30 April of each year, disclose to
the executing authority, on the form determined for this purpose by the
Commission, particulars of all her or his registrable interests in respect of
the period 1 April of the previous year 31 March of the year in question".
Nevertheless, this information was misrepresented in some newspapers, as
they did not clearly articulate the fact that their reference was to
non-designated employees who had not disclosed their assets. According to the
Public Service Regulations, non-designated employees are only required to
obtain approval before performing remunerative work outside their government
employment. Financial disclosures are not required for non-designated
employees.
The Office of the Public Service Commission (OPSC) as mandated by Chapter 3
of the Public Service Regulations, is responsible for managing the
implementation of the financial disclosure framework. According to the OPSC,
for the financial year 2004/5, 72% of designated employees disclosed their
financial interests.
The Department of Public Service and Administration and the Public Service
Commission (PSC), however, believe that a 100% compliance level is the only
satisfactory benchmark for financial disclosures.
The following could be reasons that contributed to non-disclosure in
instances where it was found.
* Some public servants were not aware of the fact that they should resign from
companies if they do not have any interest in it.
* Because the companies are dormant and no work is performed senior managers
chose not to disclose it.
* Some managers did resign from companies however the CIPRO database is not
updated timeously.
* Some senior managers were ignorant of the fact that the companies still
exist.
Having said that we do view non-disclosure in a serious light. If a SMS
member fails to disclose his or her financial interests by submitting the
applicable form to his/her Minister or MEC, he is guilty of misconduct. If a
SMS member knowingly provides incorrect or misleading details when making the
disclosure, he or she is also guilty of misconduct. The head of department is
responsible for ensuring that transgressors in his/her department of the
financial disclosure prescripts are charged with misconduct in line with the
Disciplinary Code for SMS members.
A critical reason for disclosure of financial interests is to promote
integrity in the public service and to prevent conflicts of interest.
Having an appreciation for the broader debate on conflict of interest it has
become increasingly clear to us that conflict of interest has a number of
dimensions and that its management therefore requires a much more holistic
approach.
The PSC is currently working on a comprehensive conflict of interest
framework. One such attempt has been requiring senior managers in the Public
Service to disclose their financial interests regarding, among others, shares,
directorships, property and remunerated work outside the Public Service.
In conclusion, what has been reported in the media is not consistent with
the findings of the Auditor-Generalâs report as well as the Public Service
Regulations. The statistics obtained from OPSC indicates that majority of
designated employees did comply with financial disclosure framework.
Enquiries:
Clayson Monyela.
Tel: (012) 336 1167
Cell: 082 806 7405
E-mail: Claysonm@dpsa.gov.za
Issued by: Department of Public Service and Administration
23 March 2006
