Anti-Corruption and Anti-Fraud - Ian Kenned - Cederberg

Anti-Corruption and Anti-Fraud
How to deal with corruption and fraud
beyond Policies and Strategies
Practical guidelines to Fraud risk management
from a Cederberg Municipality perspective
1. There is no doubt that the task of developing an
enterprise-wide anti-fraud and anti-corruption
strategy can be daunting.
2. However Fraud risk management should be
implemented by both small and large organizations.
Cederberg applied the following practical steps to
improve fraud risk management and dealings with
1. Implement a written policy of fraud risk
management to convey the expectations of the
council and senior management regarding
managing fraud risk.
2. Annual Risk assessments should be completed.
3. Evaluate the effectiveness of internal controls.
a. When evaluating the effectiveness of internal
controls the following must be considered:
I. The legislative background;
II. Accountability;
III. The limitations of internal controls;
IV. How do you know the controls are
V. Look at Best-practice internal controls?
4. The Importance of Internal reporting.
Design a proper internal reporting system;
The reporting system must be Practical;
What does the legislation require?
Who is responsible?
Keep track of reporting;
g. Best-practice principles;
5. External reporting.
a. Apply the same principles as Internal
6. Public interest disclosures and awareness.
a. Implement a policy: address the following key
Inform the public and clients regarding the Anti-Fraud and
Corruption Policy; the Code of Conduct for Councillors and
whistle-blowing system: toll free number;
Keep within the legislative framework;
7. Strengthen Internal Audit Unit.
Internal Audit is limited to a number of hours per
annum according to the RBAP. This is not sufficient.
a. Outsource certain specialised functions to
external experts; i.e. a review of your
financial internal controls.
8. Code of conduct.
a. Regular training of officials and councillors;
b. Sign-off by officials and councillors;
c. Follow zero tolerance attitudes.
9. Staff education and awareness.
• Inform/ train/ work-shop the Anti-Fraud
and Corruption Policy;
• the Code of Conduct;
• whistle-blowing process with all of your
officials at all levels.
• do this on a continuous basis.
General Comments
1. South Africa's numerous anti-corruption
agencies and laws indicate a strong
political will and commitment towards
combating corruption.
2. However, there must be an internal drive
from within the organisation, or else the
fight against corruption will stay a paper
exercise which affects the operating
ability of the organisation.

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