Corruption - SA Counting The Cost

Corruption in South Africa has reached epidemic levels and threatens the lives of all South African citizens. Money lost due to government corrupt could have been used to better the lives of all South African citizens, especially the poor.

Global Financial Integrity said in a report that South Africa had suffered an illegal outflow of R185-billion due to corruption in the public sector between 1994 and 2008, it is estimated that in 2009 government corruption totalled R70 billion.

In 2010, audit firm BDO reported that company fraud in South Africa was “escalating at an alarming  rate” and estimated that the “total annual leakage” from fraud, theft and corruption amounted to R100 billion.

Mr. Willie Hofmeyr, then head of the Special Investigating Unit (SIU) told South Africa’s Parliament that between R25-billion and R30-billion of government’s annual procurement budget alone was lost to corruption, incompetence and negligence.

A further four cases, valued at R171-million and involving several departments within government are currently being investigated by the SIU.

Lawson Naidoo of the Council for the Advancement of the South African Constitution said: "It's estimated that 20% of the GDP is lost to corruption annually.

South Africa as a nation has lost a staggering R385 billion since 1994 due to corruption at every level in government.

Corruption in procurement leads not only to waste of public money and resources, but inferior quality of products and services, and can deter more qualified suppliers from doing business with the state.   

The credibility of our political leadership is undermined by corruption and international perceptions of corruption in South Africa is damaging to the country’s reputation and create obstacles to foreign investment, flows to the stock market, global competitiveness, economic growth and ultimately to the development and upliftment of our people.

Our government’s failure to adhere to the practices of good governance means stakeholders increasingly demand accountability. Mass action and strikes are organised in protest as citizens begin to lose faith in the ability or willingness of their elected officials. Political instability increases. Investment declines. The sale of shares by investors decreases the value and rating of companies declines.

So who is responsible for these epidemic levels of corruption in South Africa?  Mr. Jacob Zuma is 100% accountable for all public spending, it is his legal duty to ensure that the tax payers money is spent improving the lives of all South African citizens.

The recent ruling by the NPA to reinvestigate Mr. Zuma’s involvement in  corruption relate to a controversial $5bn (£3.4bn) 1999 arms deal is a great opportunity to see how seriously Mr. Zuma takes fighting corruption at government level.  The Media reports in 2007 and 2008 suggested BAE had set up a £100m fund to bribe South African politicians.

An average of R21.40 Billion per year since 1994 has been lost by the South African government corruption, the socioeconomic impact of these losses have been felt by all South African citizens, especially the poor.

We demand that the government deals with corruption head on.


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