The DA-led Western Cape provincial government will soon invite independent service providers to bid for a tender to conduct lifestyle audits for all provincial MECs.
Lifestyle audits test whether the lifestyle of an employee is in line with that person’s known income stream. The audits will be used to hold accountable those who unduly benefit from the state’s resources and procurement opportunities.
Following jaw-dropping revelations at the ongoing commission of inquiry into state capture, there have been growing calls for all senior government officials to undergo lifestyle audits. In his damning testimony at the inquiry earlier in 2019, Angelo Agrizzi, former COO at facilities firm Bosasa, implicated ministers, former and current ANC MPs, and officials working in various departments in a range of corrupt activities.
Western Cape premier Alan Winde, who was sworn into office last week, said members of his cabinet will undergo lifestyle audits at the start and end of their terms.
“South Africans deserve public representatives who are accountable and transparent, and these audits are a step towards ensuring that the people entrusted with roles in my cabinet are of the highest integrity,” Winde said following a cabinet caucus on Wednesday.
The audits will include credit searches on the applicant and their immediate family members; criminal record searches; verifying fixed and movable assets, and conducting an asset search in the case of undeclared assets; assessing donations, gifts and potential links to executive responsibilities.
Winde said the audits are set to commence within June.
Steven Powell, a director and head of forensic services at law firm ENSafrica, has highlighted that forensic auditors look out for an excessive lifestyle featuring properties or motor vehicles of which the monthly repayment exceeded what would be reasonably affordable to the employee concerned.
“Often the properties are bond-free, which begs the question as to how the capital was raised for the acquisition. Many fraudsters accumulate portfolios of properties and launder the stolen funds by purchasing properties and renting these out, thereby generating ‘clean’ money,” he said.
Powell said the results of the lifestyle audit are an indicator that something may be amiss, but cannot be regarded as conclusive proof of illicit activity without more evidence.
Also discussed during Wednesday’s cabinet caucus was a review of the ministerial handbook, which guides the benefits and privileges members of the provincial cabinet are entitled to.
“SA’s economy is in trouble, and it is important that government spend is centred on citizens and service delivery. Our first review of the handbook, which was finalised in 2011, helped us save R100m. In this second review, we are looking for ways in which we can further tighten our belts,” said Winde.
Winde said that while his provincial government is aware that the national government is also in the process of reviewing their handbook and that the process is separate, he hopes both reviews will reflect a commitment to working within the tight fiscal space the country finds itself in, so as to ramp up service delivery.
Said Winde, “I will be sending President Cyril Ramaphosa a copy of our current handbook and any new changes we eventually make, as we are way ahead in this area.”
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