A key recommendation from the State Capture Commission has now been signed into law, making individuals criminally accountable if they have not taken steps or acted in a way that prevents corruption.
Aimed at tackling the scourge of corruption and money laundering, section 34A of PRECCA (Prevention of Corruption and Combating of Corrupt Activities Act) has now been enacted into law, holding individuals criminally liable if they fail to prevent corruption.
In reducing your risk, ask yourself?
- Do I fully grasp the concept of failure to prevent?
- Do I fully understand the extent of risk to the company?
- Have I completed a thorough risk analysis?
- Have I built comprehensive awareness among staff, contractors, and sub-contractors?
Key triggers are ‘fully’, ‘thorough’ and ‘comprehensive’.
MUBESKO AFRICA’s Smartryk Calitz warns:
“In a nutshell, pleading ignorance is no defence. Section 34A of PRECCA makes it imperative that you understand where the risks of money laundering and corruption lies in your business, and that you take preventative action which may result in re-examining your compliance and audit measures”.
Contact MUBESKO AFRICA to assess your compliance policies and processes, identify areas of weakness, develop a communications programme to improve awareness and understanding, and help you to activate measures to reduce risk.
Smartryk Calitz
Head of Forensics
RGA CGMAP CFE
smartryk@mubesko.co.za
mubesko.co.za
Smartryk was honoured as South Africa’s Certified Fraud Examiner of the Year 2023 by the ACFESA’s (Association of Certified Fraud Examiners, South African Chapter).