"The moment when something which has been kept hidden, becomes exposed"

Issue No 012
21 January 2004

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Does it add up?

2003 was not a good year for Statistics SA. First it was bruised by reports that it had in effect miscalculated the inflation rate - and then just before year-end, reports emerged that the Public Service Commission (PSC) was investigating the financial affairs of Statistician General Pali Lehola (See National Admin.). The public awaits a verdict on the matter but the most recent allegations by senior managers at Stats. SA points to the fact all is not well within South Africa's premier number-crunching institution. Equally worrying is the initial response to suspend the three whistleblowers on the grounds that they did not follow the correct procedure in reporting the matter to Minister Trevor Manuel (Mr. Leholas boss). There may well be good reason for this decision - particularly if these allegations are baseless. However, suspending the whistleblowers while the person fingered for corruption remains at the helm of the institution may send the wrong signal if we wish to actively promote a national culture of blowing the whistle on bad practice.

The cost of silence and complicity when it comes to corrupt practice is usually underdevelopment and job losses, as the Parmalat scandal shows (See Industries). The food giant, known now as 'Europes' Enron', is likely to cut jobs in the wake of attempts by executives to cover-up the extent of their corporate debt and although unions will be negotiating for a positive outcome South African employees of the multinational face an uncertain new year. Recent research by Pricewaterhouse Coopers (See Research) also supports the argument that it is managers who are more likely to be the source of corporate fraud - and inversely it is the workers (together with shareholders) who carry the burden of executive greed.

A dark cloud has also crossed the horizon of South Africa's' sunshine team - the International Marketing Council (IMC) - as the Scorpions investigate fraud within the ranks of the Council (See National Admin.). Tasked by President Mbeki with selling the numerous successes achieved by South Africa in the past ten years of democratic rule to an often cynical international investor community - the officials involved have managed to shoot these efforts in the foot. The decision to investigate the matter should be welcomed as should other responses to recent allegations of corruption such as the resignation of Northern Cape MEC John Block - and his removal from the ANC's provincial candidates list - following the exposure of his penchant for high-living in Cape Town at tax-payers expense (See Provincial Admin.). As the Auditor-General prepares to probe Mpumalanga MEC Steve Mabonas department it also appears that he has not been set free by a provincial investigation described as a white-wash by the media (See Provincial Admin.).

The Hefer Commissions’ findings, published  earlier this week (see Announcements) has cleared the stench of red herrings from the air and Bulelani Ngcuka’s can now finally get back to work overseeing the prosecution of high-profile corruption cases. Although a costly exercise it has proven positive in many respects strengthening democratic institutions and proving that as a society we have a broadly fair and open system of governance that can deal with such allegations. However, although reputations and ego’s have been bruised by the commissions findings, this may be tame in comparison to the Shabir Shaik corruption trial which will commence in the coming weeks. The Deputy President, senior officials and arms dealers both here and abroad will no doubt be following the proceedings with great interest.

Similarly 2004 will, hopefully, be an uneasy year for unscrupulous low-cost housing developers as the Gauteng government starts to claw back the R200m it has been defrauded of (See Social Justice).

An election year may be a good reminder to all political parties that the failure to tackle graft at all levels of governance will be rewarded at the polls - and citizens who have no roofs over their heads continue to make up a substantial portion of the electorate.

PUBLIC SERVICE

NATIONAL ADMINISTRATION

Watchdogs must bare their teeth

Colm Allan argues that civil society organisations (CSOs) in the post-apartheid setting have been reluctant critics of the government. It is argued that a visible decrease in internal political debate has arisen within civil society and that the political culture of withholding criticism of senior government officials and ruling party officials has deepened. Allan maintains that civil society has to question whether South Africa's new democratic institutions deliver public services in a way that meets the socio-economic rights of citizens. Since an active and informed civil society is a prerequisite for a healthy democracy, it is essential that civil society embraces a new brand of social activism that is informed by a philosophy of 'direct' and 'active' accountability that seeks to hold elected politicians and public officials directly accountable for the performance of their duties and responsibilities. Civil society should enter a relationship of mutual cooperation and information sharing with the legislature and its oversight committees since both share an interest in attempting to hold executive members and public servants to account for their conduct and performance.
Full article in the Mail and Guardian (12 December 2003)

Lehohla offers to resign from Stats SA over claims of fraud

Quentin Wray reports that Statistician general Pali Lehohla has offered to resign if the inquiry by the Public Service Commission (PSC) into his financial affairs finds evidence of corruption in his acquisition of several up-market properties. One of Lehohla's deputies, Gugu Gule, raised the alarm in May 2003 about how Lehohla had managed to buy his properties valued at approximately R4,1 million. Lehohla claimed that all his assets had been declared to Finance Minister Trevor Manuel, under whom Stats SA falls. The Mail&Guardian reported that the accusations against Lehohla include him having taken bribes to irregularly approve at least three multimillion-rand tenders. Two rounds of accusations against Lehohla have been held. The first was the dossier in May that prompted PSC investigation and the second was in November when five officials wrote directly to Manuel about alleged mismanagement within Stats SA. Two of these senior staffers have since been suspended by Lehohla for insubordination and Lehohla is conducting internal investigations against the others.
Full article in the The Star Business Report (15 December 2003)

Stats SA whistleblowers to face charges on procedure

Linda Ensor reports that Statistics SA managers Laki Ngwenya, Precious Modiba and Zolile Njovani have been suspended pending a disciplinary hearing because of their alleged failure to follow proper procedure when making allegations of bribery and corruption against Lehohla, their boss. Since they did not follow stipulated procedure in reporting their allegations against Lehohla, laws protecting whistleblowers did not cover their actions.
Full article in the Business Day (8 Jan 2004)

Scandal threatens SA's 'good news' team

Michael Schmidt reports that "The Scorpions are investigating an allegation that a senior official of South Africa's International Marketing Council (IMC) has embezzled R689 000". The IMC, considered a pet project of President Thabo Mbeki, was established to "present South Africa to its best advantage abroad and to encourage more favourable treatment of South Africa by the international media". The 2002-2003 annual report of the Government Communication & Information System (GCIS) revealed that R12,7 million had not been properly declared in the accounts of the IMC. This money was paid by the GCIS to Kagiso Media in the 2001-2002 financial year "for services rendered on behalf of the IMC". Whilst an audit found that the IMC used R8,8 million for legitimate work and that R3,2 million was held in a bank account, "R700 000 was identified as potentially fraudulently spent funds", according to the GCIS report. The Scorpions are further investigating the matter.
Full article in This Day (15 January 2003)

Jet-setting MP's sign secret IOU

Mzilikazi Wa Afrika reports that more than 40 MPs have signed agreements to pay debts owed to ITC Travel Services, one of the five travel agencies appointed by Parliament, that is implicated in a R15-million parliamentary voucher scam. According to these deals, any MP who fails to pay money owed to the travel agency within a year will have summons issued against her/him and will face being blacklisted for bad debt. PricewaterhouseCoopers investigators are liquidating ITC Travel Services after allegedly defrauding Parliament of millions by allegedly submitting fraudulent or inflated invoices. MPs who used ITC Travel Services were made to sign acknowledgements of debt and agreed to pay the debt within the next 12 months. DA MP Craig Morkel who hired an Audi TT for a week, for which Parliament was billed with an amount of R17 329, confirmed signing such a letter. "ANC MP Beauty Dlulane whose debts include R46 000 bill from Mozambique's five-star Polana Hotel, refused to comment."
Full article in the Sunday Times


PROVINCIAL ADMINISTRATION

MEC quits after spending probe

John Block, Northern Cape Transport MEC, resigned in December 2003 - two months after the Sunday Times exposed him for spending more than R50 000 of taxpayers money on jazz festivals and luxury hotels. Block was investigated for allegedly abusing travel and accommodation privileges and the irregular awarding of tenders by his department. The Sunday Times reports that Block had relinquished his position as provincial chairman of the ANC and had requested that his name be removed from the ANC candidate list for the elections this year - he previously topped the provincial ANC list. Northern Cape Premier Manne Dipico has accepted Block's resignation and emphasised the government's commitment to clean and transparent administration. (Also see previous editions of Umqol'uphandle for more details)
Full article in the Sunday Times

New probe into Mabona

Wisani wa ka Ngobeni and Matuma Letsaola report that Steve Mabona, controversial Mpumalanga public works MEC implicated in a large procurement scandal, has been cleared of all corruption charges that involved the deals between his department and businessman Walter Senoko. The Mail&Guardian has argued that Mabona's clearance n all corruption charges was a 'whitewash' that was based on 'flimsy and insubstantial investigation'. Mabona's department is now facing another investigation by Douglas Maphiri, the provincial auditor general. Maphiri's probe follows Premier Ndaweni Mahlangu's investigation and the M&G maintains that the investigators failed to look at some key charges that were made against Mabona and that the team simply chose to accept Mabona's version without scrutiny. Maphiri has confirmed that his office would conduct a 'thorough investigation into alleged irregularities in the department of public works' that would start early February. Maphiri said that his office would look at other contracts that were not investigated by Mahlangu's task team, and that the audit would also look at issues raised in the media.
Full article in Mail and Guardian

E Cape fake licences probe

News24 reports that the Eastern Cape government has launched an investigation after it became apparent that hundreds of provincial driver's licences were acquired fraudulently. The Nkonkobe municipality's driving testing centre in Fort Beaufort was reported as being one of the busiest for illegal driver's licences. Fort Beaufort chief traffic officer Vusumzi Fiki, as well as a driving school owner from Port Elizabeth, Mava Fesi, were arrested and charged with fraud and corruption. Umtata and Port Elizabeth were also notorious for issuing illegal licences. 19 People have been arrested since the task team was created and more than 60 false driver's licences have been seized. "The arrests included that of Umtata traffic chief Andre Rossouw and Ntombodidi Tyali. They were charged with corruption, obstruction and bribery regarding unroadworthy vehicles and tickets for traffic offences."
Full article in News24

Molefe told of 18 cases of public corruption

The North West provincial government says that at least 18 cases of corruption in government were reported to the North West premier Popo Molefe in 2003. Molefe who established a corruption reporting hotline at the beginning of 2003, urged people to use the facility in order to help government deal effectively with the problem. Molefe asserted that it was the role of the public to report "corruption or any deviations from clean and accountable governance' and warned people against being 'passive'". In 2002, the provincial government had reported 52 criminal cases that involved R35,1million. The Transparency Hotline can be reached on: 0800-202-591 (not on 0800-202-2591 as erroneously reported in the media).
Full article in the Business Day


LOCAL ADMINISTRATION

Jobs-for-sex report finalised

Sizwe samaYende reports that the Makhado municipal council in the Limpopo Province will convene an urgent meeting to discuss a final ad hoc committee report on claims of 'jobs-for-sex', nepotism and 'jobs-for-sale' in the municipality. Sariel Nkuzana, the mayor of Makhado, said that the five-member committee had presented the report to him and that he would table it before the council for a decision. The committee has also investigated allegations that municipal manager Reuben Rambado was irregularly paid a performance bonus of R110 000 by Brighton Tlakula, Nkuzana's predecessor. Whilst Rambado insisted that he deserved the Christmas bonus, independent labour law experts that were hired to advise the council on the matter, concluded that Rambada did not deserve the bonus, and recommended that he should be charged for misconduct. Nkuzana said that he will ask the council speaker to convene an urgent meeting to deal with the report.
Full article in News 24

Official 'misspent R200 000'

Sphiwe Mboyane reports that suspended municipal manager advocate Mapula Masemola has been accused by the Merafong Local Municipality (MLM) of abusing the council's credit card while on suspension. She was suspended on January 21, 2003, pending an investigation into alleged mismanagement. Whilst on suspension, Masemola spent R125 212,47 on her credit card that was returned at the council's request on September 18. Masemola obtained a replacement credit car from Absa Bank on October 17, even though she cannot claim to have used the card for official activities as she was on suspension. MLM has stated that Masemola has spent R41 105,87 without authorisation on this illegally obtained card. "She allegedly used the credit card at Montecasino and The Carousel casinos, on repairs and services to her Land Rover and for massages at Executive Beauty". Masemola denied wrongdoing and said that the council deducted the money she used on the credit card from her salary. The South African Local Government Bargaining Council (SALBG) ruled on July 4, 2003 that Masemola's suspension be lifted but the council is challenging the ruling.
Full article in News24


INDUSTY

Europes Enron may knock SA workers

The Parmalat crisis described by Italian Economy Minister Giulio Tremonti as 'Europe's Enron' that has shaken the Italian government and business sector may affect local operations as well. The fate of Parmalat, which has been provisionally liquidated, was jeopardised by the recent discovery of a R36 billion shortfall in its accounts. Moses Mackay reports in the Cape Argus the Food and Allied Workers Union (Fawu) claims that the South African government has shown its willingness to intervene if Parmalat SA is to be sold. This follows an urgent meeting between the union and Parmalat SA directors at the company's head offices in Stellenbosch last week.
Full article in the Cape Argus

Petrol card fraud costs companies millions

Gustav Thiel reports that the misuse of petrol cards costs the government and many businesses millions of rands annually. Of the 1,8 million petrol cards in circulation, the 600 000 fleet cards are the most prone to fraud. The government's transport fleet has been especially hard-hit by fuel card fraud. "Fleet fuel cards are used for all sorts of purchases, including lounge suites", and in some cases "people even generate a second income by using the cards". The introduction of Engen's EDC eFuel proximity device on government vehicles by the Department of Transport has saved the government R60 million. Most companies, however, lack adequate fuel management procedures and very little scrutiny of spending on fuel exists. Whilst "fuel accounts for about 40 percent of a fleet's operating costs only 3 percent of fleet operators have automated and secure fuel systems that protect against unauthorised spending".
Full article in the Cape Times

Brothers get ten years for R7m bank fraud

Hendrick Mphande reports that the Schmitt brothers, who are well known in Eastern Cape and Southern Cape business and farming circles, were jailed for a total of ten years in the Port Elizabeth High Court for defrauding the Land Bank by issuing falsified receipts and invoices that totalled R7 million. The millionaire brothers Cornelius and Johannes acquired loans in 1997 from the Land Bank for the purchase of ostriches but used the money to buy feed. The only way the brothers could thus access the funds was to provide the bank with falsified invoices obtained from another farmer that indicated the purchase of 3 300 ostriches. Advocate Francois van Zyl appealed against acting Judge N Dambuza's sentence and conviction. The judge rejected the application and had said that white-collar crime has a (negative) effect on the South African economy.
Full article in the Herald

Malabar family held on 60 charges of fraud

Jimmy Matyu reports that a prominent Port Elizabeth businessman, his wife and daughter appeared in the Port Elizabeth regional court on 60 counts of fraud on 11 December 2003. Amier Moosagie, his wife Baheejah, and daughter Luftia, as well as the directors and employers of Commando Security Services, were arrested by the Scorpions on charge of defrauding the metro council of R500 000. They were released on bail of R5 000 each for a trial date to be arranged and their case was postponed to January 29. Commando Security Services was awarded a contract by the metro council to provide security services from January 25, 2000. Commando had made misrepresentations to the municipality as to the quality of the services it had rendered and provided lower graded security officers than requested.
Full article in the Herald


CRIME AND JUSTICE

Prosecutor risks career for R300 bribe

Karyn Maughan reports that a young state prosecutor was charged with corruption in the Wynberg regional court in Cape Town after allegedly accepting a R300 bribe to withdraw charges against a suspected criminal. The Wynberg magistrate's court prosecutor, Jackson Gantolo, was arrested on 6 January after one of the men who claimed to have given him the money, alerted the police of the alleged corruption. The case has been postponed to January 26, pending further investigation into the prosecution record of Gantolo. Gantolo had been 'hand-picked as a potential regional court prosecutor and he really had an enormous amount of potential'. State advocate Helene Booysen acknowledged that although the money Gantolo had allegedly accepted was a 'relatively small' amount, the corruption was serious since Gantolo had abused a 'position of trust' with the public.
Full article in The Cape Argus

Prisons: Correctional Services probes corruption cases

According to the chief deputy commissioner for central services, Jenny Schreiner, 580 corruption probes are currently under way against Correctional Services employees. These investigations were begun in the past 18 months and related to a range of suspected offences that included the forging of qualifications upon recruitment, medical aid fraud and theft of departmental property. Allegations of false transport claims and the misuse of state funds are also made. Some of the inquiries were being undertaken with the help of the Special Investigating Unit that was tasked in 2002 to support the department in unearthing corruption. A draft White Paper on Corrections was recently approved in principle by Cabinet, which sought to shift the department's focus from punishment to rehabilitation. According to the chief deputy commissioner for corrections, Siyabulela Mlombile, the department was seeking to change the profile of its employees "from warders to role models".
Full article in the Citizen (11 December 2003)

Metro. Police: Jo'burg to restart search for officers

Hopewell Radebe reports that allegations of corruption and nepotism have compelled Johannesburg to scrap the appointments of 249 Metropolitan police candidates and to hold new interviews. Radebe maintains that this is the first time the council has responded decisively to a public outcry over alleged 'jobs for pals' accusations. These accusations forced city manager Pascal Moloi to intervene in the dispute between the Johannesburg Metro police department training academy and a union. The meeting between Moloi, Chief of police Chris Ngcobo and the South African Municipal Workers' Union (Samwu) was triggered by Samwu's dissatisfaction regarding the recruitment process. A representative five-member panel has been established to oversee the new recruitment process, which started on 7 January.
Full article in Business Day


SOCIAL JUSTICE

Housing: Gauteng to recover R200m from low-cost housing scams

Ernest Mabuza reports that Gauteng housing department is set to recover more than R200 million from fraudulent housing developers. Fraud charges have also been lodged against people who received low-cost houses illegally. Following a public outcry over the abuse of housing subsidies by developers and fraud by people who were not supposed to benefit from the housing scheme, the department initiated investigations and corrective measures in 2002. The committee of inquiry had spent R10 million on the investigations by the end of December 2003. Pieter van den Heever, a director of formal housing in the department, was dismissed for fraud in one of the housing projects, and three other departmental officials are undergoing disciplinary procedures for their alleged involvement in fraud. The investigation of the South African Land Development Organisation (Saldo) has also been completed. "Saldo is a housing developer that had a number of subsidiaries which received more than R70 million for projects between 1994 and 1996 and in one instance received R41 million for a housing development but built only five houses." Civil claims to the value of R140 million have been issued against law firms, and more than 100 charges of corruption and fraud in connection with irregularities in the allocation of houses to non-qualifying beneficiaries in a number of townships have been filed.
Full article in Business Day (14 January 2004)

Education: E Cape teachers face huge fraud probe

Eric Naki reports that "tens of thousands of teachers in the Eastern Cape will be investigated by the provincial treasury for false and duplicate claims they allegedly made to the department of education in the past four years". Treasury superintendent-general Monde Tom decided to set up an investigation team after he became aware that the education department had to pay an average of R300 million for backlogs owed to teachers every year for the past four years. Treasury officials collected all personal files in order to trace the payment route from the payroll system to personnel files and through to where it was banked. Of a sample of only 443 teachers taken from the province, the nine-week investigation revealed that all of these teachers had submitted double or triplicate and irregular claims. The fake claims were for qualification bonuses, housing allowances, overtime, salary arrears, leave discounting and exam marking. These irregular payments could have been prevented if the department had verified the payments in the personnel files and payroll system. Tom suggests that the problem is bigger than they originally thought, since "none of the beneficiaries has come forward to say he or she was paid double or three times by mistake". Interviewing teachers to account for the money, their qualification and which institutions they got them from, as well as later trace the official responsible for processing the money, would be the next step. Both the teacher and the official responsible will face possible criminal charges of fraud.
Full article in The Herald (19 December 2003)

Housing: KZN fraud bombshell looms

Paul Kirk reports that a Commission of Inquiry into corruption in the KwaZulu-Natal Department of Housing is likely to reveal some controversial findings as well as ruin a few reputations. Kirk contends that both the former KwaZulu-Natal MEC in charge of the department - Dumisane Makhaye, - and Anesh Maharaj, the family lawyer of Armichand Rajbansi, will have a difficult time in explaining some of their actions. A commission will begin early in 2004 and will be chaired by veteran legal eagle Shane Matthews. Former director general of the Department of Housing, advocate Emmanuel Mdu Khoza, has the most to answer according to Kirk, since Khoza was accountable for the purchases made by the department. Over a period of six months, Khoza's department purchased The Four Seasons Hotel (valued at R3,5  million and bought for R15  million), The Palmerston Hotel (valued at R1,5 million and bought for nearly R8  million) and the Point Backpacker's Lodge (valued at R500  000 and bought for nearly R2,5 million). Jayendren Pillay is the only real estate agent that features in these deals and has been arrested and charged. Anesh Maharaj was the seller in at least four of the cases and was formerly a member of the Minority Front. In September 2003, the Asset Forfeiture Unit swooped in and seized the Four Seasons Hotel. The unit maintained that R29  million was scammed from taxpayers by Maharaj, Pillay and Khoza. Sources in the KZN Premier's office, however, believe that the figure is much higher.
Full article in the Citizen (19 December 2003)

REFORM: An investment in the multi-party system

AngloGold has taken lead from the South African constitution and their own corporate values in developing and implementing a transparent policy regarding their funding of political parties. Although AngloGold maintains that there is always a suspicion that business may be seeking special favour when funding parties holding power at any level of government, AngloGold has made public their policy on this matter, as well as its actual application for the years 2003 and 2004. AngloGold has set a target for party funding of an amount equivalent to 10 percent of their social responsibility spending, R1,6 million for each of 2003 and 2004. These political donations will be in addition to the R16 million administered annually through the AngloGold Fund, which is its main vehicle for social investment. In order to avoid fears that the allocation of funds could be based on the whim of the company's management or its majority shareholder, AngloGold initiated a safeguard to 'ensure as fair an outcome as possible'. This requires that actual allocations be made by a committee comprising the company's independent, nonexecutive directors resident in South Africa to decide actual allocations. According to AngloGold this policy 'represents an honest attempt by the board of a South African company to define its responsibility to the society which it is home' and they 'hope its publication deepens the public debate'.
Full article in Business Day (15 December 2003)

REFORM: Corporate donations for parties are dwindling

Business Day reports that company donations to political parties are a diminishing resource. Parties fear that publicly exposing these donors will dry up the pool of funding even further, whilst big South African companies cite corporate governance concerns for ceasing political support.
Full article in Business Day

RESEARCH: 80% of companies' victims of economic crime

According to Griffiths Reid, a corporate security company, more than 80 percent of South African businesses are the victims of serious economic crimes because of the under-reporting of serious economic crimes. These findings that are based on a recent survey done by PricewaterhouseCoopers, tie in with other PWC findings that indicate that Africa has one of the highest levels of reported economic crime in the world at 51 percent. Whilst PWC research indicate that South African companies with more than 1 000 employees are most at risk from economic crime, Griffiths Reid research and experience have shown that management, and not necessarily employees, are the single greatest source of white collar fraud. The fact that three quarters of all fraud can be directly attributed to preventable corporate issues is important to note. PWC findings have revealed that almost 40 percent of crimes uncovered by large companies are discovered by 'chance'.
Full article in Business Day (14 January 2004)

REFORM: Government will log on to corruption

Alastair Otter reports that the department of public service and administration, together with CSIR, Sita (the State Information Technology Agency) and the Centre for Public Service Innovation, has launched a project to develop a corruption-monitoring database in an effort to combat corruption. Proposals were requested to create an open-source corruption-monitoring information system that is intended to be Internet-based and available to all government departments. This system is intended to allow all stakeholders to capture and maintain information through an Internet-based interface. According to the Ishara Bodasing of the department's anti-corruption division, the primary benefit of the monitoring system is that it will allow government to audit anti-corruption capacity, conduct risk assessments and track the process of data collection. Since the United Nations report on corruption in South Africa said that the country suffered from a 'grave shortage of information management', the planned database will fill a crucial gap in the government's anti-corruption strategy. The objectives of the project are to establish an on-line facility for the government, the establishment of an open-source information management system on corruption and to demonstrate the open-source model. It is aimed to complete the first of the three phases of the project in the middle of 2004.
Full article in This Day Business (17 December 2003)

RESEARCH: 'Asylum permits for R150 bribes'

Sowetan writes that the results of the National Refugee Baseline Survey released in December 2003 revealed that 'many African refugees and asylum seekers in South Africa were having to pay bribes to get their applications processed'. This survey highlights that there is evidence that considerable amounts of money exchange hands between asylum seekers and refugees, as well as between interpreters and Home Affairs officials. Up to a fifth of exiles said that they had been asked to pay for services that were supposed to be free of charge and more than 25 percent of respondents who applied before April 2000 to have their status determined were still awaiting a decision.
Full article in Sowetan (12 December 2003)

REFORM: Three strikes against graft

Hennie van Vuuren and Daryl Balia writes "The past year witnessed the crafting of three potential ground-breaking anti-corruption instruments, and an opportunity for the United Nations, the African Union and the South African Parliament to prove that they are serious about tackling graft. All three initiatives are important foundations upon which initiatives against corruption can be built". According to van Vuuren and Balia, the UN Convention against Corruption that was launched in Mexico in December 2003, will for the first time provide a global benchmark for national anti-corruption laws and will also complement the AU Convention on Preventing and Combating Corruption Related Offences that was passed in July 2003. The AU convention is in some respects the more innovative document, since the UN convention has chosen to place only an 'optional' label on these clauses which dilutes these provisions. The South African multiparty portfolio committee on justice and constitutional development has designed a new anti-corruption law that should prove both innovative and groundbreaking in its approach to combating graft. The Prevention and Combating of Corrupt Activities Act is likely to become law on 27 April this year. This act tackles corruption in both the public and private sector and imposes stiff penalties. The drafters made an important contribution by codifying specific offences. Now implementation remains the key factor and the triple obligation of implementation for the South African government presents capacity constraints as the more pressing issue. Van Vuuren and Balia identify the urgent need of all sectors of the society to take joint responsibility for monitoring the efficacy of anti-corruption measures.
Full article in Mail&Guardian (12 December 2003)

Also see Colm Allan's emphasis on the lack of leadership illustrated by the government's anti-corruption campaign, as well as its inability to implement the anti-graft systems that it has put into place.
Full article in Mail and Guardian (13 January 2004)

The National Prosecuting Authority

The National Director of Public Prosecution Bulelani Ngcuka – cleared of allegations that he was an agent for the apartheid regime – heads up an institution that continues to play an important role in combating graft in South Africa.

The National Prosecuting Authority of South Africa (NPA) was established in terms of section 179 of the 1996 Constitution of the Republic of South Africa. In 1998 Parliament passed the National Prosecuting Authority Act to give effect to the constitutional provision dealing with the prosecuting authority and to spell out the details of a new prosecutorial system for the country. The promulgation of the Act gave rise to South Africa's first centralised national prosecuting authority, which is headed by the National Director of Public Prosecutions (Bulelani Nguka) who has the power to direct prosecutions throughout South Africa. The NPA plays a unique role with respect to corruption, since it is the only body that can prosecute criminal cases of corruption. The NPA focuses on crimes of an organised nature using prosecution-led investigative techniques. The functions and duties of the NPA are to:

Institute and conduct criminal proceedings on behalf of the state;



Carry out any necessary function incidental to instituting and conducting such criminal proceedings; and



Discontinue criminal proceedings.

The NPA is organised into the following units: Prosecutions Services has the overall responsibility to co-ordinate and assist the traditional prosecuting structures such as the offices of the Directors of Public Prosecutions and the Lower Courts Prosecutors. The Asset Forfeiture Unit deals with organised crime and attempts "to take the profit out of crime" through implementing the asset forfeiture provisions of the Prevention of Organized Crime Act. The Directorate of Special Operations (Scorpions) was established in September 1999 to strengthen the government's crime fighting capacity in order to effectively investigate and prosecute national priority crime in South Africa. The Directorate of Special Operations (DSO) is specifically mandated to deal with crimes committed in an organised fashion - crimes that have a high-level national impact. The Auxiliary Services provided are the Special Commercial Crime Unit (SCCU), the Sexual Offences and Community Affairs unit (SOCA) and the Witness Protection unit.
For more details and information concerning the NPA, visit the NPA website

With the release of his final report to the President this week Judge Hefer has cleared National Director of Public Prosecution Bulelani Ngcuka of allegations that he was a spy for the apartheid regime. His accusers, who include  individuals he has fingered for possible involvement in corrupt transactions have also come under some fire in the report. In turn  the National Prosecuting Authority also drew criticism for its prolonged investigation of Mac Maharaj and possibly leaks regarding investigations from within the NPA to the media.

To view a full copy of the report see


Please forward announcements you may have concerning conferences, seminars and publications to: umqoled@issct.co.za

The Institute for Security Studies (ISS) is an applied policy non-profit research organisation with a focus on human security issues on the African continent.

This e-briefing is produced by the SA Anti-Corruption Strategies component which is located within the ISS Organised Crime and Corruption programme in Cape Town and funded by the Danish Development Agency (DANIDA) through the Embassy of Denmark.

Editorial Team:

Hennie van Vuuren (Senior Researcher: Anti-Corruption Strategies)
hvanvuuren@issct.co.za - Tel: 021 4617211
Cari Coetzee (ISS Research Assistant)
Pilisa Gaushe (Manager: ISS Corruption Resource Centre)
please email: umqoled@issct.co.za

"Corruption and misadministration are inconsistent with the rule of law and the fundamental values of our Constitution. They undermine the constitutional commitment to human dignity, the achievement of equality and the advancement of human rights and freedoms. They are the antithesis of the open, accountable, democratic government required by the Constitution. If allowed to go unchecked and unpunished they will pose a serious threat to our democratic state". President of the SA Constitutional Court (Judge Arthur Chaskalson), 2000

Umqol'uphandle - SA Corruption Briefing, a monthly free e-briefing, aims to document and inform on instances of corruption in South Africa and the SADC region and assist in raising the debate around effective anti-corruption strategies - with a South African perspective. Published by the ISS - Organised Crime and Corruption Programme, Umqol'uphandle highlights the results of relevant research, initiatives to combat corruption as well as a snapshot of recent corruption related stories, which have appeared in the media. Each edition features the top corruption related story from the SADC region as well as a short profile on a key anti-corruption agency, organisation or instrument.

Umqol'uphandle is inspired by a Xhosa proverb meaning "the moment when something which has been hidden is revealed".