Fraud plagues public and private sectors, says watchdog

‘The most recent issue is the potential greylisting of South Africa which would have dire consequences. Chief among [them] is the risk of reducing investor confidence and a negative impact on the financial well-being of South Africans.’ — Justice Minister Ronald Lamola at the Rand Merchant Bank investment conference

The public sector made up 62% of complaints received by Corruption Watch during the first six months of the year, with the majority relating to abuse of authority, bribery and extortion, and procurement and employment irregularities.

The private sector accounted for 25% of complaints.

The organisation’s 2022 Analysis of Corruption Trends report — reviewing the period from January to June — suggests that “corruption remains central to the abuse of fundamental human rights”.

“Corruption is not a victimless crime but has serious consequences for many people in the country,” Corruption Watch said. “Along with the fall-out from the loss of billions of rands to corruption, inadequate protection for whistleblowers and the absence of accountability for perpetrators continue to be significant threats to democracy and success in dismantling networks of corruption and patronage.”

The most prevalent type of corruption in the private and public sectors is fraud, making up 35% of the total number of reports. This is followed by abuse of authority, including victimisation of whistleblowers, and maladministration, both accounting for 17%, while bribery and extortion accounts for 16% and procurement irregularities for 15%.

“It is easy to become despondent as we report, year after year, how the brave people of this country continue to blow the whistle and stand up against the corrupt who are eroding our future, while the powerful remain free and unaccountable,” said Melusi Ncala, a senior researcher at Corruption Watch and author of the report.

“However, we can’t afford that kind of sentiment, especially when it is precisely their bravery and courage that should be spurring us on to greater, more urgent, and more radical action.”

The corruption watchdog received 1 037 whistleblower reports during the first half of this year, down from last year’s 1 964 reports.

Gauteng (43%), followed by Western Cape (9%), Kwazulu-natal (8%) and Limpopo (8%) were the provinces with the highest number of reports, accounting for two-thirds.

The national government is at the top of receiving complaints, 24%, followed by local government at 23% and provincial government at 17%.

“Many public sector reports relate to the building of schools, clinics, hospitals or other projects that are intended to provide services to communities. When companies are illegally appointed, or procurement regulations are contravened, the consequences can be devastating,” Corruption Watch said.

Individual assessments on reports received within the public sector show basic education accounts for 9%, while state-owned enterprises, construction and traffic and licensing each account for 6% of the complaints. Policing was in the lead, accounting for 11%.