Corruption in South Africa

[1] Corruption was at its highest during the period of state capture under the presidency of Jacob Zuma and has remained widespread, negatively "affecting criminal justice, service provision, economic opportunity, social cohesion and political integrity" in South Africa.

[2] South Africa has a robust anti-corruption framework, but laws are inadequately enforced and accountability in public sectors such as healthcare remain below par.

[5] Complaints against Zuma range from the former leader's lavish spending of state funds, to delegating contracts based on nepotism and businesses with familial connections or close ties benefiting through their association with him.

On November 11, 2020, it was revealed that a historic anti-corruption blitz resulted in the arrest of more than 100 South African political, education, health, police and business officials on corruption charges.

[15][citation needed] Between 2011 and 2015, former President Jacob Zuma's public approval ratings almost halved, from 64% to 36%, possibly due to corruption scandals over that period.

In the middle years of Jacob Zuma's presidency, corruption became rampant in most government departments, intelligence agencies, the police and the military.

The inherited bureaucracy and political culture which originated in the Apartheid era has rendered corruption issues hard to trace and tackle.

Recent state capture scandals involving South African politicians and the Gupta family have brought these types of corruption into the public spotlight.

BEE and BBBEE requirements have been used to facilitate state capture in South Africa with government contracts improperly awarded, at inflated prices, to politically connected "tenderpreneurs," sometimes to the detriment of quality and service delivery.

[40] In June 2017, Netcare, a company which operates the largest private hospital network in South Africa, was accused of BEE fronting.

A survey conducted by the ISS National Victims of Crime tested the extent and nature of petty corruption in South Africa.

[42] One of the main issues highlighted by this survey is South Africans' lack of access to information regarding how to report corrupt acts.

[42] The fear of facing repercussions for whistle blowing and the pervasive belief that reporting corruption will not cause change are two other concerns revealed by the 2011 survey.

[50] Zuma's close relationship with the Gupta family has been highlighted in the former South African Public Protector's report on State Capture.

[24] In 2016, the Public Protector, Thuli Madonsela, investigated the Gupta Family Scandal after receiving a formal complaint from a Catholic priest, called Father Stanslaus Muyebe.

[24] The allegations reported include the Gupta Family's involvement in the appointments and removals of members of the South African cabinet, the unlawful awarding of state contracts to Gupta-linked companies or persons, the banks’ preferential treatment of Gupta-owned companies and, Zuma's conflict of interest concerning his position and business dealings.

[57] Then South African Finance Minister Nhlanhla Nene gave testimony to the Zondo Commission that he was fired for not approving a US$100 billion version of the deal in 2015.

[57] The state owned national power utility Eskom as experienced numerous corruption scandals since the start of the South African energy crisis in 2008 and increased in intensity from 2019 onward.

[59][60] Corruption, particularity state capture, has also negatively impacted the construction and operation of new power plants, notably Medupi and Kusile.

[66] According to the U.S. Department of Justice, "McKinsey Africa bribed South African officials in order to obtain lucrative consulting business that generated tens of millions of dollars in profits."

[67] This arms deal set a precedent for cases of large-scale corruption and high levels of bribery and embezzlement in the African National Congress.

This arms deal came at a time when the AIDS epidemic was rampant throughout Africa and poverty and inequality in the region still remained among the highest in the world.

In 2011, Former President Zuma appointed a Commission of Enquiry headed by Judge Willie Seriti[69] to investigate allegations of impropriety, fraud and corruption around the 1998 Arms Deal.

[69] As of March 2018, Jacob Zuma has been facing 16 charges of corruption, money laundering, racketeering and fraud involving the 1998 Arms Deal.

[70] In total Zuma has been accused of accepting 783 illegal payments, including receiving bribes from a French Arms firm via his financial advisor.

[46]: 52 Sekunjalo Investments, a company owned by controversial South African businessman Iqbal Survé, has been involved in a number of scandals and accusations of corruption.

[122] This act especially condemns bribery, extortion, abuse of power and money laundering while obliging public officials to report corruption offences.

[125] In 2018 the Zondo Commission of Inquiry was set up to investigate allegations of State Capture and corruption during the administration of President Jacob Zuma.

[131] During the inquiry hearings a joint memorandum signed by the embassies of the United States, the United Kingdom, the Netherlands, Germany and Switzerland representing countries that make up 75% of foreign direct investment into South Africa warned that if unaddressed corruption would have a negative impact on future investment in South Africa.

[134][135] In 2020, South Africa saw multiple high-profile corruption arrests, including former Mangaung mayor Olly Mlamleli[136] and two senior police officials: Lieutenant-Generals Khomotso Phahlane[137] and Bonang Mgwenya.