Private-sector corruption will be vigorously rooted out as the government fights corruption within its departments and public-sector enterprises.
This was the warning from President Cyril Ramaphosa in his weekly newsletter on Monday in which he highlighted the progress of the Special Tribunal and the Special Investigating Unit which he set up to fight corruption in 2019.
“We must fight private-sector corruption with equal vigour, because for every public-sector employee willing to be bribed, there is a business person willing to pay a bribe. These corrupt relationships have eroded the capacity of the state to deliver on its mandate. They have set back the state’s efforts to provide decent healthcare, to deliver clean water, and to ensure a consistent supply of power to communities and businesses,” Ramaphosa said.
However, he said the work of the Special Tribunal had demonstrated that the tide was turning. “Not only are perpetrators being arrested and taken to court, they are also having to forfeit the proceeds of their crimes.” He said the tribunal had so far recovered about R8.6 billion from unlawful contracts.
“For any fight against corruption to be deemed effective, it is not sufficient that perpetrators are prosecuted. The proceeds of their crimes must be recovered. This money belongs to citizens and should be used to meet their needs,” he said.
The Special Tribunal last week ordered two construction companies to return the profits they earned from R40 million in contracts to erect the Beit Bridge border fence. This followed an investigation by the SIU that had uncovered a number of irregularities, including a pre-payment to the companies by the Department of Public Works and Infrastructure.
“Over the past few weeks alone, the tribunal has reviewed and set aside more than R100 million worth of irregular and unlawful contracts arising from COVID-related procurement.”
Ramaphosa said the tribunal had also been successful in getting back money from senior executives in state-owned enterprises who had conducted irregular business activities. For example, last year a former Transnet executive was ordered to pay R26 million he had received as a shareholder of a firm of consulting engineers contracted to Transnet while he was a full-time employee.
“There is still a long way to go, and there is a huge amount of stolen public funds that still need to be recovered. But the SIU and the Special Tribunal have made a good start, and I am confident of many more successes in the months and years ahead.”
Ramaphosa warned that “those who have stolen from the state may believe they have got away with it but their deeds will eventually catch up with them, whoever they are, and whatever position they may hold”. “They will learn that crime does not pay.”
