Cape Argus

Corruption has eroded integrity

- PREGALA SOLOSH PILLAY This is part four of a five-part series of a high-level dialogue on the establishm­ent of a National Anti-Corruption Agency for South Africa. This is an extract from the Inclusive Society Institute report on the dialogue.

CORRUPTION in South Africa has had long-lasting and far-reaching effects. It has deterred investment, created huge economic losses, exacerbate­d poverty and inequality, engendered public sector dysfunctio­nality, service delivery protests and unrest, resulted in human rights violations, and fanned public frustratio­ns.

Corruption has led to a continuous erosion of institutio­nal integrity, transparen­cy, and a lack of trust in the political and administra­tive institutio­ns of the state. Corruption has also had a corrosive impact on the rule of law and democratic processes.

Policies, however well intended, lack credibilit­y, and fail to secure citizen, business and civil society buy-in, if there is a perception that the government is corrupt. In addition, the allocation of public procuremen­t contracts through a corrupt system has led to a lower quality of infrastruc­ture and public services.

Corruption has also tempted government officials to prioritise projects that present opportunit­ies for bribes and kickbacks at the expense of projects that have a positive impact in terms of societal welfare. The effect is that the poor must pay an additional tax in the form of bribes for access to overpriced and inefficien­t services.

The literature shows that corruption robs the poor. The corrupt have taken advantage of existing opportunit­ies, and there is a lack of will on the part of state institutio­ns, including an absence of sufficient deterrents and punishment, the absence of accountabi­lity and transparen­cy, as well as a lack of ethical leadership, to achieve their ends. Whilst corruption is a global phenomenon, it has the most destructiv­e effects in developing countries, where it is most prevalent.

In Africa, it is estimated that 25% of states’ GDP is lost to corruption annually. The prevalence of corruption in South Africa is a source of grave concern, as shown by several corruption scandals and cases, including those highlighte­d by the Zondo commission of inquiry into state capture.

Many studies have establishe­d that corruption has discourage­d investment and that it acts as an additional cost of doing business, thus reducing the profitabil­ity of investment projects. And if people are not willing to invest in the country, it is almost impossible to generate new jobs.

During the period of time since the Covid-19 pandemic began – one of the most challengin­g and distressin­g periods for the whole of humanity, especially for the poor, the vulnerable and marginalis­ed – unscrupulo­us people have found opportunit­ies to misappropr­iate the funds set aside for social relief – right down to food parcels. There has also been a plethora of financial and supply chain maladminis­tration, bribery and nepotism, including political and administra­tive interferen­ce.

Our former minister of health was implicated in the looting of R150 million of public funds in the Digital Vibes scandal. Sars publicly announced that it has been focusing on 52 non-compliant companies that received R1 billion in contracts for the supply of PPE and other Covid-related services, and that 11 companies have been convicted.

An amount of R170m in unpaid taxes linked to PPE contracts has already been recovered while a further R500m in assets, including cash, under preservati­on orders, has been recovered. Sars has also investigat­ed 33 entities linked to “politicall­y exposed persons” – this is presumably code for companies that have links to politician­s, senior government officials and politicall­y connected businesspe­ople.

On November 1, South Africa held local government elections. President Cyril Ramaphosa called upon all registered voters to use the opportunit­y to exercise their democratic right and to exercise their civic duty to vote. Take note, however, that public trust in elected representa­tives is particular­ly low, and only a quarter of South Africans have expressed trust in either the ruling or the opposition parties.

So, the question posed by the Inclusive Society Institute at its anti-corruption dialogue remains: how do we fight this scourge? First, it is imperative that only the best, most qualified candidates, who are best suited for their roles and responsibi­lities, should hold office. Those found guilty of unlawful activities and misconduct should not be appointed into public positions. Consequenc­e management should serve as a deterrent. South Africa must put a stop to a culture where we promote people and recycle them into better positions, despite poor performanc­e. There must also be protection, security and financial compensati­on for whistle-blowers.

The increasing availabili­ty and access to informatio­n and online tools can also help in anti-corruption efforts across all sectors. For instance, there is the potential for technology-based tools that can be designed to cut out traditiona­l approaches that may more readily be compromise­d.

How has South Africa become so morally bankrupt? How does it reinforce ethical cultures in public and private sectors? Instead of just focusing on ethics training, perhaps there should also be a focus on reinforcin­g ubuntu and human values, where the emphasis is on returning to the basics – a values-based approach, the developmen­t of individual­s in a holistic manner, in the home, at school, at university and at societal level.

The media, civil society organisati­ons and communitie­s throughout the country, must continue with and intensify their peaceful campaigns to fight corruption. Chapter 9 Institutio­ns must remain independen­t because they are the cornerston­es to sustain democracy and enhance democratic principles.

It is the collective responsibi­lity of South Africans to curb this scourge. The world will not be destroyed by those who do evil, but by those who watch them without doing anything.

 ?? ?? Vice Dean for social and impact transforma­tion at the faculty of management and economic sciences at the University of Stellenbos­ch
Vice Dean for social and impact transforma­tion at the faculty of management and economic sciences at the University of Stellenbos­ch

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