Financial Mail

Light on corruption

Why we get so little back for all the money given to the corrupt and inept

- E-mail: crottya@bdfm.co.za BY ANN CROTTY

For a few months after electricit­y was installed in the small village in rural Ireland where my aunt lived, I noticed how she would press the light switch tentativel­y, not really believing anything would happen.

She didn’t seem to mind one way or another whether light poured forth; electricit­y was still part-luxury, partmiracl­e, not the necessity it quickly became. Last week, almost 50 years later, I was reminded of watching my aunt as I went to switch on my bedroom light — tentativel­y. This is what Eskom has reduced us to.

Within hours of the latest spate of “load-shedding” I had heard all manner of conspiracy theories explaining the “real” reason behind the latest assault on our democracy. Like the majority of South Africans, I have no idea why the lights sometimes don’t work; and I’m now almost as puzzled by the times they do work. Obviously, it’s a killer combinatio­n of corruption and mismanagem­ent, but how much of each? It’s likely only a few know the answer with any real precision.

So here’s the thing. If you factor in all the costs involved, not just the hundreds of billions being poured into Medupi and Kusile, but all the lost economic growth caused by the absence of a stable electricit­y supply, you’re looking at the most expensive electricit­y in the world, by a long way.

The worst of it is that we, or people acting on our behalf, have given a lot of money to corrupt people or promoted inept individual­s and got nothing back in return. The ANC investment arm did get a 5,000% return on its investment in Hitachi Power Africa and lots of well-placed people seem to have scored big on various contracts, but even that’s peanuts in the greater scheme of things. Essentiall­y, we’re not getting much bang from our corruption bucks. And we’re certainly not up there with the leading economies of the world where bribes are paid and benefits are delivered. It is rather like that sad old tale about the difference between bribing Chinese officials to get a road built and African officials — the Chinese road does get built.

Of the six countries in which I’ve lived, not one of them — well, maybe Wales — could claim to be anywhere near corruption-free, yet they all functioned reasonably well. The problem for SA is the overlay of corruption with the critical need for transforma­tion in this society. Because almost everything is in a state of transforma­tion-induced flux the corrupters are unable, or unwilling, to hold the corruptees to account.

It also means we have an excessive supply of corruption as “entreprene­urs” in all walks of life respond to perceived opportunit­ies. Judging by warnings on various government and bank websites the range of scams launched in any one day is mind-boggling; some demonstrat­e remarkable initiative.

Given the transforma­tion dimension to our problem it’s inevitable that much of the focus is on government and the public sector. That is certainly where most of the corruption opportunit­ies lie, but the public sector does not have a monopoly and a lot of what passes for acceptable business practice in the private sector would not survive scrutiny. The banks’ decision to withdraw facilities from Bosasa at this stage is a bit puzzling. Do their corrupt clients only become a problem when they dominate headlines?

As for the rest of us, the millions of ordinary South Africans, the best we can do is never tolerate corruption.

A lot of what passes for acceptable business practice in the private sector would not survive scrutiny

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