Fraud and Corruption

COMBATING THE RISK OF BUSINESS FRAUD WITHIN THE DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

All level of personnel throughout the Department of Agriculture and Rural Development, including management, staff, internal auditors and external auditors have responsibility for dealing with fraud and corruption. Based on its size and circumstances, each branch should assess the degree of emphasis to place on fraud risk management. However, everyone in the Department should understand and be able to answer these questions:

• How is the Department responding to heightened regulations and close scrutiny by public and the stakeholders?
• What form of fraud risk management program does the Department have in place?
• How does the Department identify fraud risks?
• What is being done within the Department to better prevent fraud and corruption, or at least detect it sooner?
• What process is in place to investigate fraud and corruption and take corrective action?

MANAGE THE FRAUD RISK

• Fraud remains a business risk to all entities, private and public
• Poorly managed entities expose themselves to abuse
• If not managed properly, fraud risk will manifest itself into a business reality
• By recognising fraud early, the risk is better managed and its effect minimised
• There are only two categories of fraud :
  • Major fraud and fraud uncovered in time
  • Responding to red flags will limit the exposure of the Department

MANAGING FRAUD

• Early recognition of fraudulent activities
• Fraud prevention programmes
• Management commitment
• Staff buy-in and participation
• Fraud response plan

In terms of 3.2.1 of the treasury regulations, the Accounting Officer must ensure that a risk assessment is conducted regularly to identify emerging risks of the institution. A risk management strategy, which must include a Fraud Prevention plan, must be used to direct internal effort and priority and to determine the skills required of managers and staff to improve controls and to manage these fraud risks.

The Department supports the government of South Africa’s efforts to combat fraud at all levels.

It is the responsibility of all persons to report all incidents of unlawful conduct through the following mechanisms:

• The line manager responsible, OR
• The National Anti-C

“Do right even when nobody is watching”