DIRCO Annual Report

1. INTRODUCTION The Department of International Relations and Cooperation (DIRCO) is committed to good corporate governance and has various internal control mechanisms in place to strengthen corporate governance. There are various management structures and committees in place with terms of reference, which meet on a regular basis. The department also has fully functioning assurance structures such as Risk Management and Internal Audit. These structures are supported by the Risk Management Committee and Audit Committee, both chaired by independent (external) chairpersons. The department can report that both committees have contributed positively in terms of the risk and audit management processes in the department. 2. RISK MANAGEMENT The department had developed its risk management policy and strategy. The policy and strategy were reviewed and recommended by the Risk Management Committee and approved by the Director-General in line with the Public Sector Risk Management Framework of 1 April 2010. In implementing the Risk Management Strategy, the process of department wide risk assessments was conducted. The results of the risk assessments also identified mitigations to manage those risks in order to keep risks at an acceptable level. The new and emerging risks were identified and were regularly monitored through appropriate reporting channels. The Risk Management Committee was established and consists of independent external persons as a Chairperson and members of top management structure of the department. The committee provides advice to management on the overall system of risk management, especially the mitigation of unacceptable levels of risk. The Risk Management Committee meets on a quarterly basis and on ad-hoc basis when the need arises. The department also appointed the Audit Committee, which meets regularly to advise the department on risk management and independently monitors the effectiveness of the system of risk management. The Audit Committee reviews the risk reports and provides their

opinion on the effectiveness of risk mitigations. The level of risk appetite had improved the department’s performance, however, there are specific areas which need a special risk management approach to ensure that risks are kept at an acceptable level. The department had taken a decision to categorise the high risk areas in order to provide special attention to them. Deputy directors-general (DDGs) have been appointed as risk owners to ensure that management takes accountability for managing risks in their areas of responsibilities and to embed risk management in their day-to-day activities. This approach aims to enhance the department’s overall performance. 3. FRAUD AND CORRUPTION The department had developed an anti-fraud and corruption policy and strategy to set its zero tolerance level on activities relating to fraud and corruption. The systems of internal control had been improved to prevent/detect/correct activities identified as fraudulent. The governance structures had also been strengthened to monitor and take timeous decisions on matters relating to fraud and corruption. The Anti-fraud and Corruption Policy goes hand in hand with the Whistle-blowing Policy. The Whistle-blowing Policy provides clear guidance on the reporting process of indications of fraud and corruption. It also indicates how the reported allegations are to be handled to their conclusion. The Whistle-blowing Policy provides the reporting lines, starting with the immediate supervisor or confidentially through Internal Audit or Risk Management functions. Alternatively, officials are encouraged to anonymously report any allegations of fraud or corruption to the National Anti-fraud Hotline managed by the Public Service Commission. The allegations received are duly investigated and if the results of investigations warrant a disciplinary process to take place, the Labour Relations Function manages the disciplinary process accordingly. 4. MINIMISING CONFLICT OF INTEREST The department has appointed ethics officers to facilitate the submission of the Senior Management Service’s financial disclosures as well as those of employees at remuneration

Department of International Relations and Cooperation

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