Nowhere to hide: Public servants to face lifestyle audits from February

Even if you park the Range Rover in the garage of your mansion away from prying eyes, you won’t be invisible to
the thorough sleuths who will be carrying out an in-depth audit of your lifestyle.

That’s the message for corrupt or looting civil servants, following the announcement by the Public Service Commission South Africa this week about the introduction of lifestyle audits from February next year.

Lifestyle auditors may well be paid a “bounty” or commission as a percentage of the value of the enrichment they helped to uncover, much as already happens with investigators of the South African Revenue Service (Sars) when they ferret out tax dodgers.

Apart from “boots on the ground” observations by investigators – of houses, farms and other properties – lifestyle auditors could also have access to, or would be able to, subpoena bank records.

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Government databases would have information about the numbers of vehicles owned by and registered in the names of targets. Senior manager at the Ethics Institute Liezl Groenewald said there are some government departments who have been conducting lifestyle audits for a number of years.

However, Groenewald noted that it would be unethical for government to obtain records from Sars for the lifestyle audits.

“Sars records are confidential. But one must look at the harm that it might cause if, for lifestyle audit purposes, access to such records are not provided,” she said.

“Providing the records to investigators would help to determine whether an individual was corrupt or not.”

Dr Claudelle von Eck, strategic advisor and former chief executive of the Institute of Internal Auditors South Africa, said a lifestyle audit was an investigation with the objective of determining whether there was a match between what an individual earned, their assets and spending habits.

“Typically, those who come by money through corruption or fraud will spend the money on luxury items they would not be able to afford otherwise, or live beyond their means,” she said.

“The objective is to reduce fraud and corruption. Red flags would include items like luxury cars, expensive jewellery and clothing, high market value property and holiday trips.”

Von Eck added: “The frequency of the audits should be aligned to the risk profile of the organisation, the particular area of activity and an individual’s exposure or level of power.

“That should, of course, be offset against the cost versus benefit principle. So, you may find that in some cases once every three years is sufficient, but in other cases it requires constant monitoring.”

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Public Service Commissioner Michael Seloane this week encouraged the heads of state departments to undergo lifestyle audits during a presentation of the Quarterly Bulletin “the Pulse of the Public Service” for the period 1 July to 30 September.

“The concept of lifestyle should be understood as assuring that the living standards of public servants are congruent with their declared incomes, which are also part of ensuring that we do not become a failed state,” he said.

“In order to inculcate a sense of commitment to integrity and accountability in public administration, the executive authority and heads of state should subject themselves to the lifestyle audits.”

Seloane added, “a lifestyle audit does not question the right to wealth, as there are public servants who could have acquired their wealth through honest means”.