SOUTH AFRICA Country Profile

Public Anti-Corruption Initiatives

  • Legislation: South Africa ratified the United Nations Convention against Corruption in November 2004, the African Union Convention on Preventing and Combating Corruption in November the following year, and the OECD Anti-Bribery Convention in 2007. The country has a well-developed legislative framework aimed at fighting corruption; Global Integrity 2008 describes the framework as 'very strong'. The Prevention and Combating of Corruption Act 2004 criminalises corruption in the public and private sector and codifies specific offences, making it easier for courts to use the legislation. The act specifically criminalises attempted corruption, extortion, active and passive bribery, bribing a foreign official, abuse of office and money laundering. See the website of the National Anti-Corruption Forum for a useful guide to the act and its components and information on blacklisting of companies and how to report corruption (see 'Public Procurement' and 'Whistle-Blowing' sections below). The Public Finance Management Act of 1999 holds government officials accountable for unauthorised expenditures, and the Promotion of Access to Information Act 2000 ensures that public agencies cannot hide information that should be available to the public. However, the implementation of the law has not yet reached all levels of the public sector. The Code of Conduct for Assembly and Permanent Council Members requires public officials to disclose gifts and interests, but observers say that sanctions are weak and there are reports of public officials who fail to declare their interests. Many of these legal initiatives, including the Prevention and Combating of Corrupt Activities Act 2004 and the Framework for Supply Chain Management (see 'Public Procurement' section below) suffer from poor implementation. Read more about South Africa's anti-corruption legislative framework in the Transparency International National Integrity Systems South Africa 2005 and in the UNDP Institutional Arrangements to Combat Corruption. Access the Lexadin World Law Guide for a collection of legislation in South Africa.

  • Government Strategies: The Public Service Anti-Corruption Strategy of 2002 outlines the government's anti-corruption efforts and directs resources to the anti-corruption unit within the Department of Public Service and Administration (DPSA). The unit, the Anti-Corruption Coordinating Committee (ACCC), is staffed by a group of anti-corruption specialists and advises and supports the public sector on the implementation of anti-corruption policies and legislation. Although the ACCC does not carry out corruption investigations, it does run learning programmes for other public service departments under the Anti-Corruption Learning Network, which was started in July 2008. The DPSA has also announced that it will carry out a nationwide survey among companies, The Business Survey Against Corruption, that will target South African companies operating domestically and internationally. However, as of March 2010, this survey has not yet been released. Furthermore, in 2006, the Department of Provincial and Local Government (DPLG) launched a Local Government Anti-Corruption Strategy (LGACS), which aims at prevention, detection and investigation of corruption at the municipal level. This is part of national government's anti-corruption campaign focusing on local government, in which the provinces are expected to launch the strategy for their respective municipalities. The government has also entered into a collaborative strategic organisation through the National Anti-Corruption Forum (NACF). The NACF was established in 2001 and consists of representatives of the government, the private sector and civil society with the objective of advising the government on its approach towards combating corruption. Each sector is represented by ten members. Following the NACF's second National Anti-Corruption Summit in March 2005, a National Anti-Corruption Programme (NAP) was developed, aiming at coordinating key problem areas and projects with specific outputs, timeframes and budgets. Since the development of the NAP, the pace of the NACF's activities has accelerated significantly. The NACF's third National Anti-Corruption Summit was held in August 2008. See the NACF's third summit press release. For further information, read the Business Fighting Corruption NACF case summary. In November 2009, the Zuma government announced that a new committee will be set up that will deal with corruption at all levels, BuaNews reports. The committee is to be chaired by Minister in the Presidency for Performance Monitoring and Evaluation Collins Chabane and include the ministers of the public service and administration, national treasury, local government, social development, and representatives from the security cluster. The committee is to look at all past reports by the Public Service Commission on corruption and other reports to see what action was taken against all persons involved in corrupt practices involving public funds.

  • Anti-Corruption Agency: South Africa does not have a single anti-corruption agency with the powers and mandate to investigate, arrest and prosecute corruption cases. Instead a wide range of agencies are granted authority to address corruption in South Africa. These include, among others, the Special Investigating Unit (SIU), the Auditor-General, the Public Protector (Ombudsman), the Public Service Commission, the South African Police Service (SAPS) and the National Prosecuting Authority (NPA). See below for a description of these agencies.

  • Special Investigating Unit (SIU): The SIU is the only state agency solely dedicated to fighting corruption. The SIU is an independent statutory body established by the president's office in 2001. It conducts investigations of any form of corruption in state institutions at the President's request and reports to him on the outcome. The SIU is not mandated to arrest and prosecute suspects. Instead, it cooperates with the National Prosecuting Authority (NPA) and the Asset Forfeiture Unit (AFU) to make sure that prosecutions take place. The status of the SIU has been disputed due to the fact that the agency was left out of the 'Arms Deal' investigation (perhaps the biggest corruption scandal in the history of South Africa). The SIU has now regained its credibility as an effective anti-corruption agency. BusinessDay reports that, in January 2010, the head of SIU said the unit would continue to grow significantly in future, while underlining that this was not an indication that corruption was becoming more prevalent but rather that there was a lack of capacity in government departments to investigate all the allegations of corruption against public servants. It was also an additional sign of the government's commitment to combating corruption. The website of the SIU has a whistleblower mechanism where corruption within government departments can be reported (see 'Whistle-Blowing' below).

  • National Prosecuting Authority (NPA): The NPA was established in 1998 and is South Africa's first centralised prosecuting authority. It is constitutionally independent and has the power to initiate criminal proceedings on behalf of the state. It is led by the National Director of Public Prosecutions (NDPP) and three Deputy National Directors of Public Prosecutions. The NPA consists of seven distinct units, one of which was most prominent, the Directorate of Special Operations (DSO), commonly known as the 'Scorpions'. The unit succeeded in exposing several high-ranking officials involved in corruption and had a high prosecution record, with an average of 90% of cases prosecuted resulting in conviction. However, despite its impressive record and the high degree of trust it enjoyed within the population, the unit became the victim of the power struggle within the leading political party (ANC) and was dismantled in July 2009. The Scorpions have now been replaced by the Directorate for Priority Crime Investigations, known as the 'Hawks'. The Hawks form a unit under the national commissioner of police, and as such, are subject to the control of the executive. The organisational structure of the Hawks is not yet finalised, but the unit will investigate serious organised and commercial crime and grand corruption. Supporters of the Scorpions see their dismantling as an act by the ANC to defend and protect corrupt ANC officials. Another prominent unit under the NPA is the Asset Forfeiture Unit (AFU), which was established in 1999 with the mandate to take cases of organised crime and money laundering to court under Chapter 5 and 6 of the Prevention of Organised Crime Act 1998. According to the Institute of Security Studies 2007, the AFU has shown willingness and determination to operationalise the provisions of the act, which has resulted in a number of court cases. The AFU has had notable success in several cases against drug dealers, smugglers, as well as commercial fraudsters. It has also been directly involved in asset and property recovery of some high profile figures, involving Zuma's former financial adviser, Schabir Schaik, former Nigerian state governor, Diepreye Alamieyeseigha, and the former owner of Wheels of Africa and Hyundai Motor distributors, Willie Rautenbach.

  • Auditor-General of South Africa (AGSA): The AGSA is appointed by the National Assembly and has its independence guaranteed by the constitution. The AGSA reports to the National Assembly through the Standing Committee on Public Accounts (SCOPA) and AGSA counterparts at the provincial level. It is mandated to audit and report on the accounts, financial statements and financial management of national and provincial state departments and administrations, municipalities and other institutions legally authorised to receive money for a public purposes. The AGSA plays an important role in the control of economic crime in South Africa, including the prevention of corruption. Some sources note that, while the independence of the AGSA is constitutionally guaranteed, the 'Arms Deal' corruption case brought the extent of AGSA's independence into question. Sources also note that incomplete reporting, particularly at the provincial and municipal levels, and the lack of motivation by Parliament to act on the AGSA's recommendations hamper the efforts of the institution.

  • South African Police Service (SAPS): The Constitution of South Africa 1996 established the SAPS as a single, nationwide police service under the executive command and control of a presidentially appointed National Commissioner. Within the SAPS, the Commercial Branch of the Detective Service Division holds the main responsibility in relation to corruption. In mid-2007, the SAPS was hit by a large-scale scandal, as its National Commissioner (and head of Interpol), Jackie Selebi, was arrested by the NPA for allegedly having taken kickbacks from a suspected criminal.

  • South African Revenue Service (SARS): The SARS is legally mandated to collect tax revenues and ensure compliance with tax law. It runs a national Fraud and Anti-Corruption Hotline (see 'Whistle-Blowing' below). In September 2006, SARS appointed a special task team to work closely with other law enforcement agencies, after various forms of tax refund fraud were identified by SARS investigators. According to a 2007 SARS press release, this task team identified 55 suspects for investigation and arrested them over a period of 18 months. Of these, 20 individuals, including one SARS employee, were successfully prosecuted. Another 16 individuals were arrested and were awaiting trial. The prosecution of 17 others was under consideration by the National Prosecuting Authority (NPA). In addition, SARS conducts lifestyle audits of MPs and cabinet ministers when unexplained income and conspicuous consumption occurs. However, in March 2010, the Deputy President of South Africa rejected suggestions for further lifestyle audits underlining that the problem was not with anti-corruption mechanisms but rather with their effective implementation, BusinessDay reports.

  • International Complaints Directorate (ICD): The ICD is mandated to investigate any alleged misconduct of a member of the SAPS, as well as the Municipal Police Service with the purpose of promoting proper police conduct. This includes investigating allegations of SAPS officers being involved in any form of corruption.

  • Office of the Public Protector (Ombudsman): The Ombudsman has the power to investigate any suspected misconduct or prejudice in state affairs or in the public administration in any sphere of government. According to Global Integrity 2008, the office should have overcome the backlog of investigations that plagued the institution in the past. Public Protector Leonard Mushwana, a former ANC Member of Parliament, has been accused of obstructing investigations of senior ANC members. Yet, Global Integrity 2008 notes that the Ombudsman released a number of significant critical reports and that the government generally acts on the findings of the office. The institution receives regular funding to carry out its work, which amounted to approximately USD 8.6 million for the 2008/2009 financial year.

  • E-governance: E-governance is well-developed in South Africa and a large number of government offices have their own websites with information about their work. The South African Services website provides a one-stop shop for information about services offered by the South African government. Companies will find useful information and forms on business regulations and registration, taxes and online tax payments, licences and permits. The Government of South Africa has also launched a website for online access to government tenders (e-procurement).

  • Public Procurement: Built upon five pillars (value for money, open and effective competition, ethics and fair dealings, accountability and reporting, and equity), the General Procurement Guidelines regulate public procurement in South Africa. Furthermore, the Framework for Supply Chain Management is designed to deal with corruption in government tendering processes by ensuring oversight, and the Guide to the Prevention and Combating of Corruption Act provides regulations for blacklisting of companies. Numerous cases of corruption related to public procurement indicate that all administrative levels struggle with irregularities in public procurement and contracting, and the Institute for Security Studies 2007 describes the process of awarding tenders as 'notoriously opaque'. Moreover, a hearing before Parliament's Standing Committee on Public Accounts (SCOPA) on 6 July 2009 revealed that many government departments still lack the systems and skills to enforce the ethics and disciplinary standards applicable to public servants. Almost a year after an Auditor-General's report found widespread breaches of the Public Service Code of Conduct in the process of state procurement, a substantially large number of the public servants identified have faced no disciplinary action. Read more about how 'Public servants profit from state procurement' from the IDASA report. In addition, the BEE strategy, aimed at increasing the participation of black citizens in the South African economy, has been criticised for providing too much preferential treatment to wealthy black elites in relation to getting government contracts, which has lead to an increase in South African procurement corruption. For a critical assessment of the BEE strategy in relation to procurement corruption, see the Institute for Democracy in South Africa 2008. Nevertheless, the legal framework for procurement is generally evaluated as being strong on disclosure requirements and mandatory training for procurement officials, as well as for the possibility for unsuccessful bidders to access and challenge decisions. The national government has established an online Tender Bulletin and many provincial and local governments are following suit and providing online access to tenders. The 'Tenders' section on the website of the Government of Western Cape is a good example of e-procurement at lower administrative levels in South Africa.

  • Whistle-Blowing: The Guide to the Prevention and Combating of Corruption Act includes information on how to report corruption in South Africa. The National Prosecuting Authority (NPA) hosts a Service Delivery Hotline to which corruption, fraud and abuse of authority can be reported anonymously. Also, the Special Investigation Unit (SIU) has an e-mail based whistleblower hotline and the Public Service Commission (PSC) administers the National Anti-Corruption Hotline (NACH) under the Department of Trade and Industry to which individuals can report corruption by toll free telephone as well as by e-mail. The PSC reports that its hotline has had a considerable response from the public. The South African Revenue Service (SARS) also operates a 24-hour Fraud and Anti-Corruption Hotline (+27 080 000 2870) to which companies can report corruption related to tax administration. However, government departments have largely failed to take action on the complaints. Furthermore, despite the fact that the Protected Disclosures Act (PDA) officially protects whistleblowers within both the public and the private sector from retribution, they are in reality rarely protected from job demotion, discharge or other negative consequences.

  • General Comments on the Public Anti-Corruption Initiatives: South Africa's numerous anti-corruption agencies and laws indicate a strong political will and commitment towards combating corruption. However, many of the agencies and laws suffer from uneven implementation and overlapping mandates, which affects the operating ability of these initiatives and the enforcement of anti-corruption legal framework. After being elected, President Zuma stated that the fight against corruption would be a government priority. This is evident by his orders to 280 mayors to stop corruption and power squabbles in an effort to stop protests over the lack of basic services such as housing, water and electricity, as reported by BBC News. His government has also pledged to streamline procedures and provide an overall more efficient and democratic public service after what it calls the Batho Pele (Putting People First) principle. The fight against corruption will also need to be strengthened in the areas of public education and prevention of corruption. The Economist reports that measures already introduced by President Zuma's government include: 1) a new law to facilitate efficient and effective prosecution of corrupt officials, 2) a review of the ANC's 'deployment' policies to ensure that positions are based on competence and not just personal or political connections, 3) a ban on anyone holding public office from having links with companies doing business with the state for at least a year after leaving their posts, 4) tougher rules and much greater openness in the award of public contracts, and 5) better protection for local-authority accounting officers, who are often suspended or dismissed by their employers for conducting investigations. Furthermore, Reuters reports that, in February 2010, President Zuma ordered an external audit of state companies, after reports of mismanagement and political meddling had emerged in state-owned enterprises, in an effort to take faster action to curb corruption.