SMD

Annual Report 2023/2024

Matters raised by the Portfolio Committee Department’s response The Minister should ensure that the appointment of an Advisory Board is carried out in accordance with the commitments made in the subsequent annual

% Conducted compulsory related to Anti-Fraud, Corruption and Ethics Awareness workshops during the 2022/23 financial year for sefa officials. The sessions educated, created awareness, and boosted employee confidence to report incidences of fraud and corruption; and informed staff about sefa ’s fraud risk management framework and policies. The following Board sub-committees exercise quarterly oversight on all investigations to ensure that there is adequate fraud risk management, fraud prevention and detection. These sub-committees are Audit, Risk and Social Ethics Committees. DSBD has engaged the Presidency to meet. The date is still to be confirmed.

Please refer to 7.18 above. The only other programme that has an element of energy relief is the proposed. Funding for Product Market, where 7 SEIF structures will be fitted with alternative energy supply, was only secured during the 2023 AENE processes approved by Parliament in January 2024. Funds will be transferred to Seda in January and February 2024. The sefa Board and Management understand and enforce the guidelines for the lifestyle audits on employees. To this end, the following interventions were undertaken:

The Department has embarked on a process of appointing the advisory body. There necessary documentation and the concurrence with other relevant government departments has been sought. This has paved the way to go through the process as mapped out in the legislation before the Advisory Body can be appointed. % Appointed a panel of 27 forensic firms in September 2021. % Appointed a forensic auditor Manager in March 2022. % Appointment of a new Hotline service provider in March 2023. % Completed 30 investigations between 2021 and 2023.

The DSBD conducted the lifestyle review in Quarter 4of the 2023/2024 financial year, using the current financial disclosure database. An analysis on the information provided by SMS, MMS, SCM and Finance officials was done to identify any red flags. The report was compiled and completed and subsequently submitted directly to the Department of Public Service and Administration (DPSA), via the online system implemented by the DPSA in January 2024. The DSBD can report that no red flags were identified in the report. Lifestyle audits that will include all DSBD officials will be done in 2024/25 financial year. Currently the Department does not have the budget and capacity to conduct lifestyle audits but is in the process of exploring the options available to the Department in order to effect the DPSA policy directives.

public officials in national and provincial departments, as well asSoEs. In its next quarterly report to Parliament, the Department must specify when it expects to commence this process. On the forensic investigations conducted by sefa during the course of the 2022/23 financial year,

performance plans for 2022 and 2023. The next quarterly report must include a timeline for when this will be accomplished.

Concerning the energy relief initiative announced by the Minister in January 2023, the Committee should be briefed on the progress made thus far, before the end of the third quarter.

Lifestyle audits are an essential management technique for preventing, detecting fraud and corruption in public service. They also contribute to ensuring that the lives of State employees are commensurate with their

remuneration. In April 2021, the government established and approved mandatory guidelines for all audits of

the Board must brief the Committee of the results of the forensic audit before end of the current financial year.

To support the President’s aspirations to eliminate red tape, the Committee is once again calling for the establishment of a Parliamentary Ad hoc Committee that will interface with the red tape reduction team at the Presidency under the guidance and leadership of Mr. Nkosi.

Part C • GOVERNANCE • Department of Small Business Development

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