Sustainability Report 2012 - Transnet

Social dividends (continued)“Transnet is committed through its FraudRisk Management Plan to minimise thenegative impact of fraud, corruption and/or other economic crimes within Transnet.The Tip-Offs Anonymous Hotline forms anintegral part of Transnet’s anti-fraud andanti-corruption efforts. All cases reportedare investigated by Transnet InternalAudit, following a clear forensics process.”Anoj SinghActing Chief Financial OfficerTip-Offs Anonymous Hotline statistics9691834922941 April 2010 –31 March 20111 023159Total allegationsTotal foundedTotal unfoundedTotal in progress3984661 April 2011 –31 March 2012Security managementZero tolerance of fraud and corruptionFraud, corruption and other economic crimes have a debilitatingimpact on our business, the economy and the moral fibre ofsociety. Every effort is therefore made to root them out inTransnet and hold the perpetrators to account. Transnet has aFraud Risk Management Plan with a dedicated whistle-blowingmechanism. The Tip-Offs Anonymous Hotline is managed byTransnet Internal Audit and all reported cases are investigatedthrough an established forensics process. In 2011/12, a total of1 023 call reports were received representing an increase from969 in 2010/11. Of this figure, 159 were founded, 398 wereunfounded and 466 are being investigated.With the advent of the MDS, Transnet has adjusted its FraudRisk Management Plan to address new challenges, including: result of R300,1 billion accelerated spending over the nextseven years; and emanating from the planned increase in the Transnet staffcomplement over the next seven years.The adjusted Fraud Risk Management Plan’s key initiatives are: employees; and its Operating divisions to improve adherence to Transnet’sstrategy of Zero Tolerance; and Tip-Offs Anonymous Hotline 088 0000 3056transnet@tip-offs.comAs an economic crime, copper cable theft has had a detrimental impact on rail service delivery due to the high costof replacing cables, the associated damage to wagons and locomotives, and the disruptions in rail service. In itsefforts to combat copper cable theft, Freight Rail revised its Crime Prevention Strategy. As a result, there hasbeen a dramatic decrease in the number of incidents from 2 091 incidents by the end March 2011 to 1 557incidents by the end of March 2012. Cable theft cost Transnet R38 million in 2010/11 and R19 million in2011/12.Incidents of other economic crimes that have a detrimental impacton Transnet’s business are recorded as follows:2010/11 2011/12Goods in transit theft 109 233General theft 1 257 1 527Copper products theft 40 31Motor vehicle theft 8 7Sleeper theft 27 26Tarpaulin theft 114 145Battery theft 294 221COPPER CABLETHEFT INCIDENTS2010/11 2011/122 091 1 55748