Key Takeaways
- Corruption remains a significant challenge in South Africa, undermining public trust and draining state resources.
- The Special Investigating Unit (SIU) has uncovered numerous cases of corruption and maladministration across government departments and state-owned entities.
- The SIU has recovered millions of rand in stolen funds, but critics argue that more needs to be done to hold perpetrators accountable and prevent future corruption.
- The lack of accountability and prosecution of high-profile cases has eroded public trust in the government’s ability to combat corruption.
- Experts believe that an overhaul of the tender system and amendments to existing legislation are necessary to prevent corruption and ensure effective governance.
Introduction to Corruption in South Africa
Corruption remains one of South Africa’s most pressing challenges, undermining public trust, draining state resources, and weakening the institutions meant to serve citizens. Each year, the Special Investigating Unit (SIU) uncovers new layers of misconduct across government departments, state-owned entities, and municipal structures, revealing how deeply maladministration and financial irregularities have taken root. The Auditor-General and SIU have repeatedly exposed corruption across various government sectors, yet nothing seems to be done about it. The ongoing Madlanga Commission has also exposed corruption in law enforcement, leaving South Africans wondering if there is an end in sight for this ill.
Tembisa Hospital Corruption
In September, the SIU revealed a devastating plunder of the public purse, uncovered in its probe into Tembisa Hospital, which identified three coordinated syndicates responsible for looting over R2 billion. The billions were siphoned off through a complex web of fraud and corruption. The SIU identified three major syndicates that misappropriated R2 billion intended for healthcare at Tembisa Hospital. An analysis of 2 207 procurement bundles revealed serious maladministration and procurement fraud. Key officials from the Gauteng Department of Health (GDOH) and Tembisa Hospital are accused of benefiting from corrupt payments that facilitated the irregular appointment of service providers.
Syndicates Involved in Corruption
The SIU classified three syndicates accused of these crimes. These include the Maumela Syndicate, linked to Hangwani Morgan Maumela. The SIU reviewed 1 728 bundles worth R816.5 million and uncovered significant irregularities. The SIU has traced 41 suppliers or service providers linked to Maumela. Three of the companies awarded contracts valued at R13 538 292 in this syndicate are linked to Vusimuzi Matlala. Maumela’s identified assets amount to around R520 million, including luxury vehicles and properties valued at R293.4 million. Notable properties include a R75 million property in Bantry Bay and various others in Gauteng.
Other Cases of Corruption
In November, Nedbank and Transnet SOC Limited reached an agreement regarding the interest rate swap transactions. As part of the settlement agreement, Nedbank will pay Transnet R600 million, and the SIU and Transnet will withdraw their court application to review and set aside interest rate swap transactions concluded in 2015 and 2016. The SIU had investigated the transactions featured in the Judicial Commission of Inquiry’s report into allegations of State Capture, corruption, and fraud in the public sector. The transactions were part of a larger scheme designed to misappropriate and divert public funds from Transnet for the benefit of entities linked to the Gupta family.
Transport Corruption
In early December, the SIU announced it had successfully recovered and returned R14.7 million to six Provincial Departments of Transport. The funds were irregularly diverted from the Nationwide Rolling Stock Fleet (NRSF) project. The SIU investigated serious maladministration and corruption within the transportation sector, with a focus on vehicle registration, driver licensing, and the eNaTIS system. In the investigation’s first phase, the SIU uncovered extensive fraud and maladministration within Driving License Testing Centres (DLTCs) and the eNaTIS system.
War on Leaks Programme
In June, the SIU appeared before the Standing Committee on Public Accounts to provide an update on its investigations into the Department of Water and Sanitation. The War on Leaks Artisan Training programme was launched by then-president Jacob Zuma in 2015 to train 15 000 youth to reduce water losses through leaks. The project was signed in 2015 by then Water and Sanitation Minister Nomvula Mokonyane and Rand Water to curb about R7 billion in water leaks nationwide. The approved budget for the programme was R2.2 billion. However, the SIU identified that R4.7 billion had been paid out.
NLC Corruption
In November 2020, President Cyril Ramaphosa signed a proclamation authorising the SIU to investigate the National Lotteries Commission (NLC) and recover any losses. In May, SIU head Andy Mothibi briefed the standing committee on public accounts on the investigation into the NLC. The SIU divided its investigations into three phases. The estimated value of the matters investigated in the first and second phases is R279.7 million and R246.6 million, respectively. The SIU has completed investigations in these phases.
Lack of Accountability
IRS forensic investigator Chad Thomas says that there is no end in sight for corruption in South Africa. "South Africa is battling a tsunami of corruption which impacts on each and every citizen, especially in respect of service delivery (or rather the lack thereof), and the lack of consequences when it comes to holding criminals to account," Thomas told The Citizen. Sadly, it seems to be worsening, especially with the so-called ‘mafias’ also known as ‘business forums’ which are delaying service delivery projects for the most needy and sabotaging infrastructure to get contracts. There is little to no accountability, he says, and the kingpins of these criminal syndicates are never caught.
Conclusion
The SIU has played a crucial role in uncovering corruption and recovering stolen funds, but critics argue that more needs to be done to hold perpetrators accountable and prevent future corruption. The lack of accountability and prosecution of high-profile cases has eroded public trust in the government’s ability to combat corruption. Experts believe that an overhaul of the tender system and amendments to existing legislation are necessary to prevent corruption and ensure effective governance. Until then, corruption will continue to undermine public trust and drain state resources, leaving South Africans wondering if there is an end in sight for this ill.