The Prevention and Combating of Corrupt Activities Act (PRECCA) clearly states that it is illegal to:
- Assist someone involved in corruption – either during the act itself, or afterwards.
- Cover up things related to corrupt activities.
- Ignore maladministration.
It also says that:
People in positions of authority in the public and private sectors must report corruption, and other crimes listed in the Act involving more than R100 000, to the police. If they don’t, they will be guilty of a crime. Examples of ‘people in positions of authority’ include:
- The Director-General, Head or equivalent officer of a national or provincial department.
- The Municipal Manager of a municipality.
- A person in the Senior Management Service of a public body.
- The head, rector or principal of a tertiary education institution.
- The Manager, Secretary or Director of a company or closed corporation.
- The executive manager of a bank or financial institution.
- A partner in a partnership.
- The Chief Executive Officer (or person holding a similar position) of any structure, institution or body set up by law.
- A person employed by a business who is responsible for the overall management and control of the business.
- Anyone on the above list who has been appointed in an acting or temporary capacity.
If they fail to do so, they are guilty of a crime and can be fined or sent to jail for up to 10 years.
The Local Government Municipal Finance Act says (point 2) that a crime is when a senior manager or other official of a municipal entity (e.g. Knysna Tourism) exercising financial management responsibilities and to whom a power or duty was delegated in terms of 30 section 106. commits an act of financial misconduct if that senior manager or official deliberately or negligently:
- Fails to carry out the delegated duty;
- Contravenes or fails to comply with a condition of the delegated power or
- Makes an irregular or fruitless and wasteful expenditure; or
- Provides incorrect or misleading information to the accounting officer
It also states (point 3) that a municipal entity must:
- Investigate allegations of financial misconduct against the accounting officer, a senior manager or other official of the entity unless those allegations are frivolous, vexatious, speculative or obviously unfounded; and
- If the investigation warrants such a step, institute disciplinary proceedings against the accounting officer, senior manager official in terms of Schedule 3 of the Municipal Systems Act.
The model policy for adoption by municipalities and municipal entities in terms of section 111 of the Municipal Finance Management Act, No 56 of 2003, and the Municipal Supply Chain Management Regulations states that:
- Municipal entities must ensure their policy is consistent with the parent municipality, to the extent determined by the parent municipality (regulation 2.2).
Considering this, why did Knysna Tourism so often utilize the same people or companies and why were some paid exorbitantly. This is amplified by Knysna, a tourist-based economy, having faced massive difficulty since 2008. Tourism contracts should look for the best deal but, spread out, could have also served the noble purpose of keeping more small businesses alive.
Why do Knysna Tourism Board members work with or own companies that receive sponsorship from Knysna Tourism? Even given that ours can be a small town and that it can be hard to find appropriate Board members, why were there no regulations covering such and why a total lack of transparency?
Cronyism i.e. favouritism is a crime.
Part 3 at Knysna Corruption 3: Their Criminal Actions.