Business Learning Forum on

Anti-Corruption

25 September 2012

Wally Mayne 25 September 2012

5 Bottom line

4 Additional initiatives

3 Commitment by CESA members

2 CESA Presidential message

1 Introduction to CESA

60 years of consulting engineering (1952 – 2012)

1 Consulting Engineers South Africa (CESA) - established in 1952

2 A voluntary association - independent consulting engineers -

private practice

3 Initially 30 individual members in 1952 – now 487 firms

4 > 22 000 people in total - annual turnover of R17 Billion (2011)

5 CESA hallmarks - Integrity, professionalism & impeccable ethics –

(registration of companies)

6 Government & private sector partners - CESA firms delivering

infrastructure - improved power supply, better roads, safe

drinking water & efficient sanitation.

7 Infrastructure projects - create jobs, alleviate poverty & provide a

better quality of life for all South Africans.

‘CESA engineers unquestionably ethical’

1 Corruption is the scourge crippling the Construction Industry –

offenders wilfully do not comply with procurement processes &

act with impunity (municipalities)

2 CESA President’s theme – Integrity - CESA engineers

unquestionably ethical

3 Firms to ensure their ‘ethical balance’ – is in accordance with the

CESA and/or their own Company Business Integrity Management

Systems (BIMS)

4 Firms must engage with every single employee - examine and

assess how employee’s ethical balance fits into company policy.

Code of Conduct, BIMS & Integrity Pact

1 CESA places huge emphasis on integrity & ethics

2 Pre-membership checks – registered with CIPC, practising > 1

year, 50% Prof Engineers, field of expertise etc

3 Membership entails commitment to CESA Code of Conduct &

BIMS, possibly Integrity Pact in future

4 Members subject to Disciplinary Code – clients have recourse –

complaints investigated and hearings held

5 Sanctions include suspension and termination of membership as

well as publication of findings in the press

6 CESA constantly on look-out to improve these Codes in line with

industry trends/legislation

1 Challenge non-compliance by Organs of State (Mostly

DPW & municipalities)

1 Member firms bring non-compliance to CESA’s attention

2 Correspond with organ of state and copy CIDB/ Treasury

3 No response then follow-up letter

4 Still no response then alert media

5 Seek legal advice

6 Busy with pilot case (obtaining court interdict)

2 Involvement with like-minded bodies

1 Identified NBI, BUSA & cidb as most suitable

2 Actively assisting with development of Integrity Pact (IP)

• initially developed own

• but realised require IP for Construction Sector

• so working with cidb as well as NBI & BUSA wrt IP and

other anti-corruption initiatives

3 Attended workshops with NBI & BUSA, membership of BUSA

3 Amending procurement process for construction

sector

1 Complex & confusing procurement system - favours

corruption

2 Approached Treasury who is sympathetic to CESA proposals

3 Proposal 1 - re-introduce Quality/Functionality into point

scoring system for awarding tenders (PPPFA)

4 Proposal 2 - separate procurement process for construction -

not standard goods and services

A few parting shots

1 None of the above measures will work without effective

leadership

2 Business integrity is not about companies, government and

institutions, it is about individual human beings.

3 Need to change the ‘mindset’ – stop at the stopstreet, pick up

litter, pay accounts within 30 days, do an honest day’s work

4 Corruption is preventing service delivery – in the North-West

Province, consulting engineering work has dried up almost

totally – no new infrastructure is being built

For more information contact: Achieng Ojwang, Programme Manager: UNGC

+27(0)11 544 6000; ojwang.achieng@nbi.org.za

www.nbi.org.za