Managers could be jailed for turning a blind eye to corruption

Managers who turn a blind eye to corruption are laying themselves open to hefty fines or even jail time of up to ten years, warns Trevor White, director of Forensic Services for PricewaterhouseCoopers. “In terms of Section 34 of the Prevention and Combating of Corrupt Activities Act of 2004, the duty to report crimes related to fraud and corruption is placed squarely on the shoulders of a person in a position of authority in business,” he says. This duty arises when a person holding a senior position suspects or is in possession of hard evidence proving that someone committed corrupt transactions. The Act defines corrupt transactions as theft, fraud, extortion, forgery or uttering, involving more than R100 000. The rules apply to all managers at middle level and up. White warns that managers are obliged to report suspected corruption even when they do not have concrete proof, but have a strong suspicion that it is happening.