The Eastern Cape Department of Education has become like a problem child in the Republic of South Africa. It is a cause for concern to both the provincial and national government. This is a department where service delivery is problematic. Schools are not built or renovated and children are taught in dilapidated structures or sometimes under trees. Hardly a week passes without the department making the headlines in the media for the wrong reasons. It is widely accepted that the department is dysfunctional and education is in a crisis. The department has emerged as the number one culprit of engaging in corrupt activities in the province. Public officials in the department have been identified as being at the helm of these corrupt activities. In the 200/10 financial year, the Auditor General issued a disclaimer to the department and highlighted a lack of direction, accountability and a total breakdown of internal control systems and supply chain management within the department. Numerous fraud risk indicators were identified during the audit and underlined by findings that are indicative of fraud and corruption within the department. This unfortunate state of affairs is contrary to the requirements of section 195(1) of the Constitution of the Republic of South Africa which provides for the democratic values and principles governing public administration including inter alia, that: A high standard of professional ethics must be promoted and maintained. Efficient, economic and effective use of resources must be promoted. Public administration must be accountable. This raises several questions about the ethical fitness of public officials in the department as the custodians of the public resources and trust. Though several reasons abound for this unfavourable state of affairs in the department, the researcher has singled out unethical conduct by public officials in the department and its impact on service delivery. The approach followed in this research was to analyse the 2009/10 Department of Education Annual Report and the 2009/10 Auditor General’s Report to the Eastern Cape Department of Education. The analysis confirmed the existence and occurrence of multiple cases of unethical conduct in the department. At the end scientific recommendations are proposed to alleviate this ill.

Text in English / Procurement fraud is an enormous problem and the South African news is perforated with reports of this illicit act. Procurement fraud occurs in all the phases of the procurement cycle, but this illicit act is mostly committed during the tender phase. Business does not see procurement fraud as a crime and therefor this crime is committed due to non-existent internal controls and processes to assess the adequacy of these controls. The purpose of the research was to highlight that procurement fraud occurs when internal controls are being bypassed or if an entity has an ineffective internal control system. The researcher studied the appraising of internal controls to understand the role it plays in detecting, preventing and investigating procurement fraud, specifically during the tender phase. The research design utilised was a qualitative research approach and an empirical design plan or strategy, to obtain the information. The researcher opted for this design to obtain information from literature and information from individuals in appraising internal controls. This ensured a comprehensive data gathering process. The goal of this research was to provide practical recommendations to assist investigators in private and public sectors with investigations into procurement fraud during a tender. / Police Practice / M. Tech. (Forensic Investigation)

The primary aim of this study is to determine the significance of the application of physical surveillance as a method in the investigation of insurance fraud conducted by the Surveillance Unit at the Forensic Department of Discovery Life. Various objectives were fulfilled in this study:  To explore, identify and describe the value of the application of physical surveillance, as a forensic investigation method, in order to determine the significance of this method in the investigation of insurance fraud at the Forensic Department of Discovery Life.  To determine whether the application of physical surveillance at the Forensic Department of Discovery Life is achieving its intended objective relating to the degree to which the beneficiary’s (Discovery Life) situation has changed as a result of this method.  To apply new information, acquired from the findings of this study, to further develop good practice and enhance performance in order to empower investigators at Discovery Life with new knowledge relating to the application of physical surveillance in the investigation of insurance fraud. Semi-structured interviews were conducted with forensic investigators employed at the Forensic Department at Discovery Life. The research has revealed that the majority of forensic investigators, other than the Surveillance Unit, at the Forensic Department of Discovery Life do not utilise physical surveillance during insurance fraud investigations to assist them in gathering evidence. These investigators also had a lack of knowledge and skills regarding the utilisation of physical surveillance during insurance fraud investigations and the advantages of this method during insurance fraud investigations. As a result of the non-utilisation of physical surveillance during insurance fraud investigations conducted at the Forensic Department of Discovery Life, important information and evidence with regard to the movement and actions of identified perpetrators who commit insurance fraud are lost to the investigators. However, the significance of the application of physical surveillance in the investigation of insurance fraud is emphasised by the forensic investigators attached to the Surveillance Unit of Discovery Life who utilise physical surveillance on a daily basis to investigate insurance fraud. The research has further revealed that insurance fraud is a major concern to the insurance industry, but can be mitigated through the implementation of unconventional investigative methods, such as physical surveillance, to enhance investigative capabilities. It was recommended that all forensic investigators at Discovery Life be trained in the techniques of physical surveillance to address shortcomings of general and out-dated investigation methods. / Criminology and Security Science / M. Tech. (Forensic Investigation)

Instances of fraudulent acts are often headline news in the popular press in South Africa. Increasingly, these press reports point to the government tender process as being the main enabler used by the perpetrators committing the fraud. The cause of the tender fraud problem is confidentiality breach of information. This is accomplished, in part, by compromising the tender information contained in the government information system. This results in the biased award of a tender. Typically, the information in the tender process should be used to make decisions about a tender’s specifications, solicitation, evaluation and adjudication. The sharing of said information to unauthorised persons can be used to manipulate and corrupt the process. This in turn corrupts the tender process by awarding a tender to an unworthy recipient. This research studies the generic steps in the tender process to understand how information is used to corrupt the tender process. It proposes that conflict of interest, together with a lack of information confidentiality in the information system, paves the way for possible tender fraud. Thereafter, a system of internal controls is examined within the South African government as well as in foreign countries to investigate measures taken to reduce the breach of confidential information in the tender process. By referring to the Common Criteria Security Model, various critical security areas within the tender process are identified. This measure is assisted with the ISO/IEC 27002 (2005) standard which has guiding principles for the management of confidential information. Thereafter, an information security policy,the Chinese Wall Model will be discussed as a means of reducing instances where conflict of interest may occur. Finally, an adapted Chinese Wall Model, which includes elements of the tender process, is presented as a way of reducing fraud in the government tender process. Finally, the research objective of this study is presented in the form of Critical Success Factors that aid in reducing the breach of confidential information in the tender process. As a consequence, tender fraud is reduced. These success factors have a direct and serious impact on the effectiveness of the Chinese Wall Model to secure the confidentiality of tender information. The proposed Critical Success Factors include: the Sanitisation Policy Document, an Electronic Document Management System, the Tender Evaluation Ethics Document, the Audit Trail Log and the Chinese Wall Model Prosecution Register.

This qualitative case study research endeavour is a direct result of limited research on female fraud research in South Africa. The research questions that guided this research are: What are the different pathways and lived experiences of the females incarcerated for fraud?; What are the causes, contributory factors and motives of the sample-specific female fraud offenders? and Can the criminal behaviour of each female offender be explained by means of criminological theories?. Seven adult female offenders voluntarily participated in this research project and their unique narratives, pathways and lived experiences were depicted and analysed to determine the causes, contributory factors and motives related to their offending behaviour. Criminological theories and the gendered theory of female offending were applied to explain their fraud-related behaviours. The findings suggest that overlapping causes (i.e. lack of self-control), contributory factors (i.e. rationalisation of behaviour) and motives (i.e. greed) played a prominent role in the female offenders’ fraud-related behaviours. / Lolu cwaningo lwe-case study yengqikithi ngumphumela oqonde ngqo wocwaningo olufishane lwenkwabaniso eyenziwa ngabesimame eNingizimu Afrika. Imibuzo yocwaningo eyaba ngumkhombandlela walolu cwaningo yilena elandelayo: Ngabe yini imigudu nezipiliyoni zempilo abahlangabezana nayo abesimame ababoshelwe inkwabaniso?; Ngabe yini izimbangela zenkwabaniso, yini izinto ezinomthelela kanye nezinto ezigqugquzele abesimame abenza amacala enkwabaniso kulabo ababeyisampuli yabesimame abenza inkwabaniso? kanti futhi, Ngabe ukuziphatha kobugebengu kwabesimame abanamacala kungachazwa ngamathiyori emfundo ngobubegengu? Abesimame abayisikhombisa abanamacala enkwabaniso bangenela ucwaningo ngokuzithandela kuleprojekthi yocwaningo, kanti izipiliyoni zempilo yabo kwachazwa futhi kwahlaziyiwa ukuthola izimbangela, izinto ezibe nomthelela kanye nezinto ezigqugquzele ukuziphatha kwabo kobugebengu. Amathiyori emfundo ngobugebengu kanye namathiyori ngabesimame abenza amacala nawo asetshenziswa ukuchaza ukuziphatha kwabo kwenkwabaniso. Imiphumela yocwaningo ithole ukuxhumana kwezimbangela (isib. ukwehluleka ukuzilawula, ezinye izinto ezibe nomthelela (ukuzichaza impatho yabo ngezindlela ezithile), okubagqugquzelile (isib. umhobholo) konke lokhu kwaba nendima enkulu kwabesimame abenze amacala enkwabaniso nokuziphatha kwabo. / Patlisiso eno e e lebelelang mabaka mo kgetseng e e rileng ke ditlamorago ka tlhamalalo tsa dipatlisiso tse di lekanyeditsweng tsa patlisiso ya boferefere jo bo dirwang ke basadi mo Aforikaborwa. Dipotsopatlisiso tse di kaetseng patlisiso eno ke: Dikgato tse di farologaneng gongwe maitemogelo a basadi ba ba tshwaretsweng boferefere ke afe?; Mabaka, dintlha tse di tshwaelang le maitlhomo a batlolamolao ba boferefere ba basadi ba ba dirisitsweng jaaka sampole ke eng? le A maitsholo a bosenyi a motlolamolao mongwe le mongwe wa mosadi a ka tlhalosiwa ka ditiori tsa bosenyi? Batlolamolao ba basadi ba le supa ba ithaopile go nna le seabe mo porojekeng eno ya patlisiso mme dikgang tsa bona tse di kgethegileng, dikgato le maitemogelo a ba a tshetseng di tlhagisitswe le go sekasekwa go swetsa gore mabaka, dintlha tse di tshwaelang le maitlhomo a a amanang le mokgwa wa bona wa tlolomolao ke afe. Ditiori tsa bosenyi le tiori e e amanang le bong ya tlolomolao ya basadi di dirisitswe go tlhalosa mekgwa ya bona e e amanang le boferefere. Diphitlhelelo di supa gore mabaka (go tewa go tlhoka go itaola), dintlha tse di tshwaelang (go tewa go leka go tlhalosa mabaka a maitsholo) le maitlhomo (go tewa bogagapa) a nnile le seabe se segolo mo maitsholong a amanang le boferefere a batlolamolao ba basadi. / Criminology and Security Science / M.A. (Criminology)

The aim of this paper is to research how advanced accounting software can be used by police detectives, financial risk specialists and forensic investigation specialists, who are responsible for the investigation and tracing of the reintegration of proceeds of crime, from underground banking into formal banking system (pro active and reactive money laundering investigation) with a view on criminal prosecution. The research started of by looking at the basic ways how proceeds of crime are smuggled before it is integrated into the formal banking system. In that context, the phenomenon of Underground banking was researched. Currency smuggling, Hawala currency transfer schemes and the way in which it is used to move proceeds of crime were discussed in detail. Thereafter Formal banking and the way in which proceeds of crime is reintegrated from underground banking structures into formal banking systems were discussed. The use of advanced accounting software to trace the point where proceeds of crime are reintegrated into formal banking were researched extensively. Accounting software and investigative techniques on how to trace financial transactions which might be tainted with proceeds of crime were discussed. Accounting software which can be used on office computers such as laptops were discussed and more advanced automated systems which can be used to trace proceeds of crime transactions in the formal banking systems were also discussed. In specific, the investigative techniques on how to use these systems as investigative tools were discussed in great detail. This research paper gives a truly unique perspective on the financial investigative and analytical angle on proceeds of crime and money laundering detection. / Criminal Justice / M.Tech. (Forensic Investigation)

Text in Afrikaans / Fraud is a worldwide phenomenon that is on the increase and a reason for serious concern. It is a priority crime in South Africa with serious implications both financial and socially. Fraud costs this country R150 milliard, almost three times the cost of the controversial weapon transaction. This was the goals of the researcher to determine what motivates the offender to commit fraud and how can fraud be explained in this study. A qualitative approach was followed due to the qualitative nature of the concept motivation. This resulted in a two-phase approach namely a documentary study, which was followed by interviews with experts in the field of fraud. Ten pre-sentence court reports of fraudsters were studied where after the outcome was discussed with these experts. The criminal event model served as framework for this study. Strain was incorporated as an additional component in the explanation of fraud. / Criminology / M. A. (Criminology)

It is a well-known fact that criminals derive an income from their illegal activities, live lavish lifestyles, flaunt their wealth for all to see and acquire luxury goods. It is also a well known fact that criminals living from the proceeds of crime do not want to not want to keep financial records of their transactions or illegitimate business for fear of being detected by the authorities and to escape being taxed. It is also a known fact that criminals do not declare income from criminal activities for income tax purposes to the revenue authorities for fear of the illegal origin of the income being made known to the investigating authorities and law enforcement. During the investigation of financial crimes, such as tax evasion and money laundering, it may be required that the amount or value of money, income or assets accrued by a subject is determined in order to determine for instance their liability to pay tax. This research project examines the Net Worth method as an indirect method to circumstantially quantify income during the investigation of financial crime. / Police Practice / M.Tech. (Forensic Investigation)

The opening of a bank account serves as the genesis of a bank customer relationship. It is imperative that the establishment of a bank customer relationship be regulated by law. Both the common law and statutory law regulate the admission of new clients to the realm of banking. It is a minimum requirement, in terms of both statutory and common law, that the identity of a prospective client who wishes to open a bank account must both be established and verified. This, the need to know one’s customer, is not only good law but common sense and an effective measure to prevent criminals from accessing the banking system. Parties who work together must know each other. The need to establish and verify the identity of a potential customer is commonly referred to as the Know Your Customer standards, alternatively the Customer Due Diligence framework. The Know Your Customer standards are neither unique to South Africa nor have their origins in South Africa. The Know Your Customer standards are international standards which the Financial Action Task Force and the Basel Committee on Banking Supervision have been advocating for quite some time. A confluence of the Recommendations of the Financial Action Task Force and the Basel Committee on Banking Supervision greatly influenced the birth of the Financial Intelligence Centre Act in South Africa. The Financial Intelligence Centre Act 38 of 2001 prescribes the steps that a bank has to take in order to establish and verify the identity of a potential client. It will be shown in this dissertation that the identification and verification regime established by the Financial Intelligence Centre Act 38 0f 2001 and the common law are not fool proof. This dissertation makes recommendations on how the current loopholes that exist in the law can be addressed. / Mercantile Law / LLM

Text in Afrikaans / Fraud is a worldwide phenomenon that is on the increase and a reason for serious concern. It is a priority crime in South Africa with serious implications both financial and socially. Fraud costs this country R150 milliard, almost three times the cost of the controversial weapon transaction. This was the goals of the researcher to determine what motivates the offender to commit fraud and how can fraud be explained in this study. A qualitative approach was followed due to the qualitative nature of the concept motivation. This resulted in a two-phase approach namely a documentary study, which was followed by interviews with experts in the field of fraud. Ten pre-sentence court reports of fraudsters were studied where after the outcome was discussed with these experts. The criminal event model served as framework for this study. Strain was incorporated as an additional component in the explanation of fraud. / Criminology and Security Science / M. A. (Criminology)