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Business Learning Forum on
      Anti-Corruption

    25 September 2012
Wally Mayne
25 September 2012
1 Introduction to CESA


 2 CESA Presidential message


3 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 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

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Wallace mayne anti corruption initiatives in the consulting engineering sector 25 sept 2012

  • 1. Business Learning Forum on Anti-Corruption 25 September 2012
  • 3. 1 Introduction to CESA 2 CESA Presidential message 3 Commitment by CESA members 4 Additional initiatives 5 Bottom line
  • 4. 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.
  • 5. ‘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.
  • 6. 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
  • 7. 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)
  • 8. 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
  • 9. 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
  • 10. 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
  • 11.
  • 12. For more information contact: Achieng Ojwang, Programme Manager: UNGC +27(0)11 544 6000; ojwang.achieng@nbi.org.za www.nbi.org.za