CAPE TOWN, South Africa (AP) — Recent reports from South Africa’s national anti-corruption unit indicate that investigations are currently underway regarding alleged corruption exceeding $7 billion at several prominent state-owned enterprises. These investigations, some of which have been ongoing since 2018, were highlighted in a report submitted by the Special Investigative Unit (SIU) to a parliamentary committee, providing an update on ongoing probes.
The focus of these investigations encompasses six critical state-owned entities: Transnet, a ports and rail company; Denel, an arms manufacturer; Eskom, the national power utility; the National Lotteries Commission; South African Airways, the national airline; and PRASA, the passenger rail service. Notably, Transnet is currently the centerpiece of scrutiny, with around 60 dubious contracts, alongside hundreds of conflict of interest cases and other alleged corrupt activities, under examination, amounting to nearly $4 billion of public funds.
In addition to the significant findings at Transnet, there are approximately 40 additional investigations underway concerning various other state enterprises, as well as national and provincial government departments, further amplifying the financial scope of alleged corruption throughout the government, which extends into the billions. The SIU has also finalized numerous investigations, which are pending public release.
The investigations shed light on the pervasive corruption issues that have plagued South Africa over the past fifteen years. Allegations of widespread bribery and corruption related to lucrative government contracts became prominent during the tenure of former President Jacob Zuma, who governed South Africa—for nine years—before resigning in 2018 amidst these allegations. A judicial inquiry initiated in the aftermath of these accusations uncovered a network of corruption involving numerous government officials and executives from state-owned businesses, who allegedly accepted kickbacks and bribes in exchange for government contracts or favors. This culture of graft has reportedly infiltrated all levels of government, yet few individuals implicated have faced prosecution.
The ramifications of such corruption have severely impacted South Africa’s economy, particularly evidenced by the turmoil faced by Eskom, which has been at the core of numerous scandals. The nation faced unprecedented levels of blackouts last year, a crisis largely attributed to corruption and mismanagement within the utility. Presently, more than 270 contracts, associated with a total of approximately $2.2 billion at Eskom, are under investigation through an SIU probe that has persisted for over six years.
Moreover, the report reveals that PRASA has likely suffered losses of $540 million to corruption, including an alleged scheme involving payments to more than 1,200 fictitious workers, or “ghost employees.” Among the contracts under scrutiny is one valued at over $300 million, which dates back to the 2010 FIFA World Cup, hosted by South Africa.
Corruption became an emblematic issue for the African National Congress (ANC), the party that held power during Zuma’s presidency. This scandalous reputation was a significant factor in this year’s national elections, resulting in the ANC losing its parliamentary majority for the first time since the end of apartheid in 1994.
Current President Cyril Ramaphosa has vowed to reform his party and the government while bringing those implicated to justice. However, experts in anti-corruption caution that the likelihood of recovering the misappropriated funds remains diminished.
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