Wallace mayne anti corruption initiatives in the consulting engineering sector 25 sept 2012Presentation Transcript
Business Learning Forum on Anti-Corruption 25 September 2012
Wally Mayne25 September 2012
1 Introduction to CESA 2 CESA Presidential message3 Commitment by CESA members 4 Additional initiatives 5 Bottom line
60 years of consulting engineering (1952 – 2012)1 Consulting Engineers South Africa (CESA) - established in 19522 A voluntary association - independent consulting engineers - private practice3 Initially 30 individual members in 1952 – now 487 firms4 > 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 ethical3 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 Pact1 CESA places huge emphasis on integrity & ethics2 Pre-membership checks – registered with CIPC, practising > 1 year, 50% Prof Engineers, field of expertise etc3 Membership entails commitment to CESA Code of Conduct & BIMS, possibly Integrity Pact in future4 Members subject to Disciplinary Code – clients have recourse – complaints investigated and hearings held5 Sanctions include suspension and termination of membership as well as publication of findings in the press6 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 attention2 Correspond with organ of state and copy CIDB/ Treasury3 No response then follow-up letter4 Still no response then alert media5 Seek legal advice6 Busy with pilot case (obtaining court interdict)
2 Involvement with like-minded bodies1 Identified NBI, BUSA & cidb as most suitable2 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 initiatives3 Attended workshops with NBI & BUSA, membership of BUSA
3 Amending procurement process for construction sector1 Complex & confusing procurement system - favours corruption2 Approached Treasury who is sympathetic to CESA proposals3 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 shots1 None of the above measures will work without effective leadership2 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 work4 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; email@example.com www.nbi.org.za