Not many people are aware of their legal reporting requirements in terms of ‘The Prevention and Combating of Corrupt Activities Act’ of 2004, commonly referred to as ‘PACCA’.

 

An ‘Act’ is a law that has been passed by Parliament. As its name suggests, PACCA aims to prevent and fight corruption in government and in the private sector. The general offence of corruption is defined in section 3 of the Act which broadly states that a person or body is guilty of the offence of corruption where the giving and/or accepting of a gratification amounts to any “unauthorised or improper inducement to do or not to do anything”.

 

Section 34 of the Act requires people in positions of authority in the public and private sectors to report to the police such knowledge or suspicion of corruption involving R100 000 or more. If they don’t, they will be guilty of an offence. The Act specifies that the police must issue a written receipt to the reporter.

 

The Act provides examples of ‘people in positions of authority’. The spectrum is wide and includes, but is not limited to, the following:

If the ‘people in positions of authority’ fail to report in terms of PACCA, they could be guilty of an offence and can be fined or be sent to jail for up to 10 years.

 

Many people do not report corruption out of fear of the consequences; for example, being disciplined or dismissed. However, the Protected Disclosures Act of 2000 was passed to protect “whistle blowers” from being victimised, as long as they follow the conditions as described in the Act.

 

PACCA is extremely comprehensive, and it is recommended to take heed of its reporting requirements, especially in the current economic climate.

 

If you would like further advice in relation to PACCA, please contact Horwath Forensics on 011 217 8000.