Public Service Commission releases Fact Sheet on Financial Disclosure Framework for 2011/12 financial year

Public Service Commission releases a Fact Sheet on the Financial Disclosure Framework for the 2011/2012 financial year

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 2011/12 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.

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 2007/8 and 2009/10 financial years, to 75% in the 2011/12 reporting period. There has been a slight increase of 7% compliance in the current financial year compared to the previous financial year (2010/11). However, the PSC believes that a 75% compliance rate is still not satisfactory and only a 100% compliance rate would be satisfactory.

Submission of financial disclosure forms by 31 May 2012.

 1.1. National departments

Table 1: Submission of financial disclosure forms for the 2011/12 financial year as at 31 May 2012.

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 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 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 2011/12 financial year in respect of Directors-General (DGs) for national and provincial departments were not satisfactory. As at 31 May 2012, of the 52 DGs in national departments and provincial administrations, only 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 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.

Conclusion

There has been a marked improvement in the submission rate by the due date for the 2011/12 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.

For enquiries, please contact:
Ricardo Mahlakanya
Tel: 012 352 1070
Cell: 079 769 7955
E-mail: ricardom@opsc.gov.za

Humphrey Ramafoko
Tel: 012 352 1196
Cell: 082 782 1730
E-mail: humphreyr@opsc.gov.za