SIU seeks to expand lifestyle audits to cover livestock, land and international travel
· Citizen
The government is moving to implement changes in how lifestyle audits are conducted to ensure that no loopholes are exploited to evade detection.
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On Wednesday, the Special Investigating Unit (SIU) presented to parliament an assessment of existing guidelines and advisory services on how the government can strengthen lifestyle audits in the public service.
Acting head of the SIU, Leonard Lekgetho, said while the SIU used to follow the Department of Public Service and Administration’s (DPSA) guide on implementing lifestyle audits, it has now been adjusted to align with the SIU’s investigative approach. This way, no stone will be left unturned.
The SIU will now start with lifestyle reviews, then lifestyle audits, during which they conduct further testing for any red flags, and a lifestyle investigation is recommended.
The SIU has recommended expanding the DPSA annual asset declaration form to include questions that can shed further light on an employee’s lifestyle. This will include ownership of livestock, land, and buildings in rural areas; foundations and trusts; international travel; bank accounts; investments; cryptocurrency accounts; and offshore accounts.
SIU on bank records for lifestyle audits
The DPSA methodology does not require bank statements or financial records to analyse an employee’s assets and determine whether the individual is living beyond or within their legal means.
“It is recommended that the income of an individual, through a reliable source, such as bank records, for a period of not less than three years, be included in the DPSA guidelines. This will give a good analysis of an employee’s income and expenditure,” said Lekgetho.
The SIU is also moving to secure a proclamation that will make it impossible for people to evade lifestyle audits.
“There are some departments that are resisting to implement lifestyle audits, a blanket proclamation will compel them to cooperate. This will also help with bank statements. Currently, members submit the records; a proclamation will help the SIU get direct access to the banks. We depend on what members give us. If they don’t give us all the accounts, we’re unable to see whether they declared all their accounts,” said Lekgetho.
The SIU will closely investigate those with expensive vehicles, too.
“Was it bought cash or paid off in a shorter period? This one is shocking when you find that people put in a large deposit and it gets paid off in a year or two, a vehicle costing a million or R1.5 million.”
DPSA, SIU and SSA partnership
Since 2022, the SIU has conducted lifestyle audits on60 senior officials of the Department of Public Works and Infrastructure (DPWI), 278 Prasa officials, 19 officials from the Gauteng office of the premier, 37 officials from the housing development agency, 32 officials from the Free State department of human settlements, 590 officials from the Northern Cape office of the premier and 27 officials from the Free State department of roads and transport.
“Currently, there are some shortcomings and challenges, but we’re addressing them,” said DPSA acting DG Willie Vukela.
“We’re now initiating a very good progressive intervention between the DPSA, SIU and State Security Agency (SSA). In terms of the law, the appointment of senior managers must go through the process of security clearance. That process looks at the security risk of the state.
“We want to build capacity in that process so that when one goes through it, let that lifestyle audit kick in immediately, so that when the processes get finalised, we make sure that all senior managers, with no doubt, have gone through security clearance and lifestyle audit to address the issues of unexplained wealth. We’re building that system.”