Fraud and Corruption Prevention

What is fraud and corruption?

Understanding the meaning of fraud and corruption is the first step in fighting against fraud and corruption.

Fraud: in South African law offences, fraud is defined as “the unlawful and intentional making of a misrepresentation which causes actual and or potential prejudice to another”. The term “fraud” is also used in a wider sense by the general public.

Corruption: is defined as the misuse of entrusted power for private gain. There are various types of corruption and could include such things as taking bribes to award a contract, favouritism, nepotism, victimisation and aiding suppliers to commit fraud, etc.

How can fraud and corruption be prevented?

Prevention of fraud is the best strategy that any department can make; we all know that prevention is better than cure. Fraud and corruption can be effectively prevented by instituting the following preventative strategies:

Structural strategies:
  • Right tone from the top;
  • The Risk Management Committee (RMC) to oversee the institution’s approach to fraud preventions, detection response and corruption incidents reported by employees or other external parties;
  • The appropriate ethical cultures and risk management philosophy;
  • Commitment by all employees to eradicate fraud and corruption;
  • Assessment of fraud and corruption risks and developing appropriate response strategies and
  • Employee training and awareness
Operational strategies:
  • Effective internal controls e.g. system security controls, reconciliation of bank statements and segregation of duties;
  • Prevention strategies;
  • Employees awareness campaigns;
  • Pre-employment screenings;
  • A robust internal audit plan which focuses on the prevalent of high fraud and corruption risks;
  • Adequate fraud  prevention plan and
  • Disclosure of interest
Detection strategies:
  • The application of detection technics
  • Ad hoc management reviews
  • Adequate detections systems
The role of risk management:

National Department of Tourism (NDT)  has established a Risk Management Unit, which is placed under the Directorate Business Performance and Risk Management (BP&RM) and Chief Directorate Governance Support to facilitate fraud prevention strategies. The BP&RM unit is currently engaging in several strategies to prevent fraud and corruption risks to ensure that the department ethical in all its dealings with the public and other interest parties.

To further enhance the enterprise wide risk management approach, risk management office has developed the Risk Management Framework, which includes the following: Whistle Blowing Policy, Risk Management Policy, Fraud Prevention Plan, Anti-Fraud and Corruption Strategy, Fraud Prevention Policy, Risk Management Strategy, Risk Management Implementation Plan and the Supply Chain Risk Management Strategy.

What do you do if you witness fraud and corruption?

The Public Service Commission (PSC) has introduced a toll free National Anti-Corruption hotline (NACH) 0800 701 701 where fraud and corruption can be reported, you can also visit the website:​.

What will happen if the fraud or corruption is detected?

In the event that fraud and corruption is detected or suspected investigations will be initiated and if warranted disciplinary proceedings, prosecution or action aimed at the recovery of losses will be initiated. ​