Counting the cost of corruption

Corruption has cost South African taxpayers at least R4.4 billion over the past few years on everything from bribery to tenders awarded without proper procedures being followed and overspending. This damming information is contained in a report by trade union Solidarity, which has highlighted several instances of what it says are corrupt practices. Solidarity says its report, which details just ten instances of what it terms corruption, shows that “corruption in South Africa has reached crisis proportions and stretches far beyond the notorious Nkandla debacle”. The union consulted various media sources and indexes to analyse case studies. “In the tenth place is the notorious Nkandla debacle, while nine other institutions and cases exceed it in terms of their extent, severity and impact on the corruption scale. These include, among others, the South African Police Service (SAPS) and the Department of Home Affairs.”

According to the union’s report, the Tswane prepaid meter debacle was the most costly example of government oversight failure. This project cost tax payers more than R1.6 billion in total, R830 million of which was spent before the plug was pulled because Solidarity unit, AfriBusiness, threatened to challenge the legality of the deal in court. The project was aimed at combating non payment of electricity within the region, but installed the meters in buildings whose owners were already paying for electricity. Tshwane paid PEU, the contractor, “a gargantuan R830 million between October 2013 and May 2015 to install 800 000 meters and manage the project for eight years”. When the deal was cancelled, only 12 930 meters had been installed. PEU will also be paid another R800 million post cancellation to continue handling the project until it can be handed over, the union claims. Solidarity also points out issues with bribery at several government units, including the Department of Home Affairs, the South African Police Service and metro police.

The police has also been cited in the report over its “the most controversial corruption case” over a R500 million lease of its new Pretoria headquarters. “After a 10-minute meeting with the police in 2010, the deal was irregularly awarded to property mogul Roux Shabangu. The fallout later claimed the head of the then police commissioner Bheki Cele, who is the current deputy minister of Agriculture, Forestry and Fisheries.” Solidarity adds “one of the biggest government blunders discussed in the report is the R620 million spent on unsuitable locomotives by the Passenger Rail Agency of South Africa (Prasa). In addition, a recent report by the Auditor-General (AG) shows that Prasa has racked up irregular expenditure of at least R790 million.” Other issues such as false qualifications, the Travelgate scandal and the R800 million fishing tender awarded to Sekunjalo are also cited as instances of corruption by Solidarity’s report. Solidarity notes, 2006, 14 ANC MPs were convicted and fined after pleading guilty to theft and fraud charges due to the abuse of parliamentary travel vouchers. Yet, Parliament wrote off R12 million owed by the MPs in 2011. It also says Sports minister Fikile Mbalula grossly overspent, to the tune of R65 million, on one awards ceremony in 2013.

Dr Eugene Brink, senior researcher at the Solidarity Research Institute, says the findings in the report, although shocking, are merely a drop in the ocean. “It is impossible to quantify the actual extent of corruption in South Africa as much of the corruption takes place unnoticed and unpunished. Furthermore, there are even more incidents of corruption not mentioned in this report that exceed Nkandla. Therefore the findings in the report are not all-encompassing and are merely an indication that corruption is undeniably one of the biggest crises in our country,” he says. “Prominent ANC MPs such as Nathi Mthethwa, Lindiwe Sisulu, Nosiviwe Mapisa-Nqakula, Beaty Dlulane, Mnyamezeli Booi, Lindiwe Sisulu, Ruth Bengu and Humphrey Mmemezi as well as EFF MPs such as ... Julius Malema have all been implicated in irregular and corrupt practices,” the report claims. Solidarity has brought the report to the attention of several stakeholders, including the Public Protector, Thuli Madonsela, and the watchdog organisation, Corruption Watch.