On 24 May 2021, together with the Special Investigating Unit (SIU), I launched the Infrastructure Built Anti-Corruption Forum (IBACF), a multi sector body set up to prevent and combat fraud and corruption in the infrastructure and/or construction sector.
This strategic intervention was made to mitigate the threat of corruption in the implementation of the Infrastructure Investment Plan approved by Cabinet in May 2020
At the time of the launch, I stated that in order to regain confidence of investors and society, it is vitally important that effective systems are put in place to detect and prevent corruption, which will bring greater level of transparency and credibility in the implementation of the Infrastructure Investment Plan.
Apart from the Department of Public Works and Infrastructure (DPWI) and the SIU, the IBACF consists of representatives from the following organisations, The National Prosecuting Authority, the Directorate for Priority Crime Investigation, The Financial Intelligence Centre, Corruption Watch, The Council for the Built Environment, Master Builders South Africa, South African Council for the Architectural Profession (SACAP), Consulting Engineers South Africa (CESA), South African Black Technical & Allied Careers Organisation (multi-disciplinary) (SABTACO), South African Bureau of Standards, Business Unity South Africa (BUSA) and the Human Sciences Research Council, Auditor General South Africa, Global Infrastructure Anti-Corruption Centre, Bargaining Council for the Civil Engineering Industry and the National Agency for Youth Empowerment in Construction.
The objectives of the Forum is to foster collaboration amongst the key role players such as law enforcement agencies, construction sector regulators, civil society, government departments and private sector to monitor infrastructure projects more effectively and put systems in place to detect and prevent corruption.
The forum has oversight of investigations and sees various agencies working together to investigate any reported and alleged corruption so that we enhance accountability in the implementation of the Infrastructure Investment Plan’s projects.
Head of the SIU, Advocate Andy Mothibi said: “”It is indeed pleasing to see the Infrastructure Build Anti-Corruption Forum (IBACF) gaining traction. One of the key deliverables of the IBACF is to focus on the prevention of corruption and maladministration in the Infrastructure Build. We have already initiated a process to conduct analysis and to model the Infrastructure Build data. The modelling of the Infrastructure Build Data will enable the sector to identify corruption risk exposures so that appropriate preventive measures can be put in place. The investigations are receiving appropriate attention to complete them speedily to reach outcomes, so that all those responsible are held accountable and required consequence management is implemented, recover monies and assets that have been lost and to prosecute where there is evidence of criminal action. It is only through a concerted effort of all members of the IBACF that the fight against corruption, maladministration and malfeasance in the Infrastructure Build Sector can be won.”
At the time of the launch, I also stated that the IBACF would report on its activities every three months.
Progress to date:
During the first three months of its existence, the IBACF, led by the DPWI and the SIU has put in place an operational structure known as a Steering Committee to oversee the operations of the Forum.
The Steering Committee’s operations includes receiving and assessing allegations relating to the infrastructure built environment, referral of allegations for investigations by relevant members of the IBACF, and implementation of prevention, advisory and awareness initiatives in the infrastructure and /or construction sector.
Ongoing Investigations:
The SIU received six proclamations dealing with Infrastructure build. Investigations into four of the proclamations are finalized and only two proclamations are ongoing.
The SIU made several recommendations for disciplinary action, blacklisting of service providers and criminal referrals to NPA. There are several matters where SIU instituted civil proceedings against several service providers in order to recover losses suffered by the State. The litigations are at different stages.
Some of the General findings in the investigation include the following:
high CIDB Grading issued to non-deserving contractors,
regulatory weaknesses in construction sector compliance enforcement,
prize fixing and/or collusion (cartel behaviour) by large entities in construction sector
procurement irregularities in awarding of tenders in the infrastructure and/or construction sector
facilitation payment (circumventing approval processes through bribery & kick- backs)
defrauding State through usage of sub-standard construction material to make more profit,
The latest allegation was referred to the IBACF on 2nd June 2021. The nature of allegations is that the Contractor submitted two invoices to the DPWI in August 2020. The amounts claimed on the invoices did not correspond to the service rendered and they were referred to the relevant branch in the department for evaluation of the actual work done by the contractor. Evaluation reports indicated that the department was overcharged.
The Department has discovered that the original amount claimed by the contractor on one of the invoice was fraudulently processed and paid to the contractor without financial authority.
A criminal complaint was laid to the Directorate for Priority Crime Investigation and the matter is still under investigation.
IBACF Steering Committee meetings:
The Steering Committee meets on a monthly basis and has since convened three (3) times following the launch of IBACF. Amongst the key outcomes that have been achieved by the Steering Committee, are the following:
Development of IBACF Implementation Plan
Development of IBACF Case Assessment Framework
Development of Built Environment Code of Conduct
Developed a ‘Pledge Against Corruption’ to promote integrity and transparency in built environment, it is anticipated that this pledge will be signed publicly by key stakeholders in the built environment.
Online anti-corruption training course for stakeholders in the infrastructure built environment
Engaged universities to include ‘anti-corruption training course’ in built environment as part of academic curriculum
Referred one corruption allegation to DPCI for further investigations
Initiated discussions with key stakeholders regarding the use of data analytics and data modelling in order to generate trend analysis reports which will inform the IBACF prevention, advisory and awareness initiatives.
IBACF Implementation Plan:
The IBACF Implementation Plan has been developed to structure the operations of the Forum. The objectives of the Plan is to assist with identifying areas of co-operation to enhance detection and prevention of corruption and maladministration in the infrastructure and/or construction environment.
IBACF Case Assessment Framework
The Steering Committee has developed the Case Assessment Framework that will regulate how the reported allegations of corruption in the built environment will be handled. The Case Assessment Framework deals with the roles and functions of the Steering Committee Chairperson and Secretariat, receipt and registration of cases, assessment and referral of cases and the confidentiality of information processed by the Steering Committee.
The activities of the Steering Committee in the first quarter were focussed on putting in the place the necessary mechanisms that will deal with the mechanics of the operations of the IBACF.
Having now established a Steering Committee, it is anticipated that in the second quarter there will be more emphasis on the implementation of the activities in the Plan especially with regard to targeted awareness campaigns.
I want to thank the IBACF members for their work so far and look forward to joining them to launch and implement more initiatives to prevent and detect corruption so that we can stop this evil before it occurs.
I also remind members of the public to be brave and do their duty speak out and report corruption or alleged corrupt activities in the Infrastructure Investment Plan projects.
Members of the public can report allegations of corruption in the Infrastructure Investment Plan projects, they can report it to the SIU whistleblowing hotline – 0800 037 774 or via email to siu@whistleblowing.co.za(link sends e-mail)
Everyone can be assured that their details and identity will be treated with the utmost care and confidentiality will be ensured.
Source: Government of South Africa