TY - JOUR
T1 - Lifestyle audits in South Africa – overrated or X-factor?
AU - McIntyre, Jacqui-Lyn
AU - Aslett, Duane
AU - Buitendag, Nico
PY - 2023/5/24
Y1 - 2023/5/24
N2 - Purpose: President Cyril Ramaphosa, in his 2018 State of the Nation Address, stated that “Thieves who are stealing public funds should be arrested and prosecuted”, and called for lifestyle audits of public-sector employees. The gross misuse of COVID-19 relief funds by public officials indicated the urgent need to execute these audits as an anti-corruption measure. This paper aims to provide a review of the existing state of affairs with regard to the application of lifestyle audits in South Africa. Design/methodology/approach: This paper critically analyses the literature available on the current position of South Africa concerning lifestyle audits in the public sector, based on the mandates of some of the anti-corruption agencies that could be responsible for the conducting and processing of such audits. Findings: South Africa has only recently seen a framework for applying lifestyle audits, developed by the Department of Public Service and Administration. Although these first steps in developing a standard practice are laudable, the practical process of dealing with misconduct and/or criminal matters remains to be seen. It is recommended that South Africa consider a legislative approach to dealing with unlawfully obtained wealth by either criminalising the act of illicit enrichment (per the United Nations Convention Against Corruption) or creating an Unexplained Wealth Order, as seen, for example, in the UK. Originality/value: South Africa is in dire need of addressing corruption in the public sector. Despite lifestyle audits being called for, the lack of proper implementation is negating any positive outcomes. Therefore, alternative solutions should be investigated.
AB - Purpose: President Cyril Ramaphosa, in his 2018 State of the Nation Address, stated that “Thieves who are stealing public funds should be arrested and prosecuted”, and called for lifestyle audits of public-sector employees. The gross misuse of COVID-19 relief funds by public officials indicated the urgent need to execute these audits as an anti-corruption measure. This paper aims to provide a review of the existing state of affairs with regard to the application of lifestyle audits in South Africa. Design/methodology/approach: This paper critically analyses the literature available on the current position of South Africa concerning lifestyle audits in the public sector, based on the mandates of some of the anti-corruption agencies that could be responsible for the conducting and processing of such audits. Findings: South Africa has only recently seen a framework for applying lifestyle audits, developed by the Department of Public Service and Administration. Although these first steps in developing a standard practice are laudable, the practical process of dealing with misconduct and/or criminal matters remains to be seen. It is recommended that South Africa consider a legislative approach to dealing with unlawfully obtained wealth by either criminalising the act of illicit enrichment (per the United Nations Convention Against Corruption) or creating an Unexplained Wealth Order, as seen, for example, in the UK. Originality/value: South Africa is in dire need of addressing corruption in the public sector. Despite lifestyle audits being called for, the lack of proper implementation is negating any positive outcomes. Therefore, alternative solutions should be investigated.
UR - https://www.scopus.com/record/display.uri?eid=2-s2.0-85139179599&origin=resultslist&sort=plf-f&src=s&sid=351213db5a42f4bf452033bb3387b684&sot=b&sdt=b&s=TITLE-ABS-KEY%28Lifestyle+audits+in+South+Africa+%E2%80%93+overrated+or+X-factor%3F%29&sl=112&sessionSearchId=351213db5a42f4bf452033bb3387b684&relpos=0
U2 - 10.1108/JFC-07-2022-0172
DO - 10.1108/JFC-07-2022-0172
M3 - Article
SN - 1359-0790
VL - 30
SP - 1078
EP - 1095
JO - Journal of Financial Crime
JF - Journal of Financial Crime
IS - 4
ER -