By any measure a public spat between the head of the National Prosecuting Authority and the Public Protector is unprecedented in South Africa (See National Administration). However, the arms deal saga has dealt our young democracy so many dubious 'firsts' that it is surprising that we are not reeling from the cumulative body blows. The Standing Committee on Public Accounts, the Auditor-General, and the Special Investigating Unit -all key institutions that have not been left unscarred in the wake of allegations of corruption in the arms deal.

The attack by Bulelani Ngcuka and former Justice Minister Penuell Maduna on Public Protector Laurence Mushwana was both undignified and unwarranted - but one cannot but wonder if this really is only a side-show? Are these the sparring matches before the knockout fight? The trial of Shabir Shaik looms large on the horizon and will prove the likely title challenge. If his former financial advisor implicates the Deputy President on corruption charges, it may be the beginning of the end of Jacob Zuma's political career. For this matter to be brought to a close the National Director of Public Prosecutions will need to stay the full 12 rounds - and shooting from the hip when discussing the integrity of the public protector is unlikely to win him many friends. With the Hefer Commission now almost a distant memory parliament must now consider the public protectors accusations against Ngcuka. The deliberations of these elected representatives are of interest to all citizens as they may have a direct impact on Ngcuka's political future and the potential stance that the leadership of the NPA and Scorpions (in Adv. Leonard McCarthy) take on further probing these matters. Even with support from the President (See National Admin), these women and men are likely to shy away from confrontation if they have just lost their chief on the same issue.

If Ngcuka survives this - and whatever he is faced with in the next four months, he needs to ensure that allegations of corruption against Deputy President Zuma are cleared or confirmed in a court of law. This in itself will confirm the resilience of our democratic institutions - and affirm the integrity of a government which two thirds of South Africans voted to power this year.

At the same time however, if Ngcuka is fighting this battle on principal he needs to keep his eye on the foreign arms companies who continue to count profits from their headquarters in Europe while South Africans have to clean up this mess. If the deputy president, or any other official was bribed then it is time to get tough on these companies as well.

Arnold Bengis (who we have reported on in past editions) has finally been jailed in the US for marine poaching (See Industries). No ordinary thief, Bengis who plundered the South African coastline of rock lobsters, no doubt resulted in a loss of livelihood for numerous working class families in South Africa. Although slapped with a heavy fine by the Scorpions it may now be time that the Asset Forfeiture Unit explores the possibility of reclaiming his assets from the USA. The UN 'Palermo' Convention on Organised Crimes makes provision for the repatriation of the proceeds of crime - it is now time that such lofty provisions are vigorously implemented both here and in Washington. Equally - once the National Treasury finalises its corruption 'blacklist', this should include the name of Bengis, who must not be allowed to swim freely in our waters again.

We would like to thank readers for your response to the recent readers survey, your comments have assisted us in a process of improving this e-briefing. The first changes are likely to be evident at the end of July when we also announce the launch of a new web-based portal on corruption in Southern Africa.

Shortly after he had been accused of abusing his authority while investigating Deputy President Jacob Zuma, National Director of Public Prosecutions Bulelani Ngcuka is once again in the spotlight following the emergence of further allegations of abuse of power. Behind the allegations this time is Deputy Director of Public Prosecution, Cornwell Tshavhungwa whom Ngcuka "suspended for allegedly accepting bribes from officials at a government finance institution in Mpumalanga." According to the report by Wisani wa ka Ngobeni Tshavhungwa has now approached Public Protector Lawrence Mushwana to investigate the Scorpions for abuse of power.

Reacting to Laurence Mushwana's report which accuses them of violating the constitutional rights of Deputy President Jacob Zuma, former justice minister Penuell Maduma and Scorpion's boss Bulelani Ngcuka have jointly accused the public protector of participating in an "orchestrated campaign" to discredit the National Prosecuting Authority (NPA). The report's key finding is that Zuma's constitutional right to human dignity had been violated and that he had been "improperly prejudiced" by Ngcuka. Christelle Terreblanche notes that, in its recommendations the report "urges parliament to take urgent steps to ensure Ngcuka was held accountable for "failing to co-operate" for infringing on Zuma's "constitutional right to human dignity and thereby causing him to be improperly prejudiced", and for "acting in an unfair and improper manner in regards to the deputy president."

The verbal attack by Ngcuka and Maduna against the Public Protector has triggered political analyst Aubrey Matshiqi to call for President Thabo Mbeki to "act decisively to protect the dignity and credibility of the public protector and the National Prosecuting Authority."
See full article in Business Day (31 May 2004)

Speaking at the launch of government's R15 billion expanded public works programme President Thabo Mbeki vowed to "deal harshly" with corruption and wastage of public funds. This is according to a report by Ranjeni Munumsay, which highlights the President's determination to have zero tolerance on both public and private sector corruption.
Full Article in This Day (19 May 2004)

Discussions on whether it is appropriate for members of Parliament to receive large discounts - which are not available to the general public - when purchasing motor vehicles or other goods and services are expected to take place in Parliament's rules committee. According to a report by Waghied Misbach the issue of whether MPs should be prevented, for one year after their term, "from working and being appointed to the board of a company that they had dealings with while serving in public office" is likely to be discussed later this year. A further discussion "on whether the current minimum requirement of R350 for disclosure of gifts or benefits should be raised to R1 000 or more" is also expected to take place.
Full Article in Sowetan (12 May 2004)

Traffic official John Muller, who blew the whistle on corruption in the Mpumalanga Traffic department in 1997, died in penury after he was driven out of the public service. "His revelations, led to the appointment of the Moldenhauer Commission and the recently speaker of Parliament, Baleka Mbete, being implicated in an illegal driving licence scam." Writing in Business day, Rhoda Kadalie argues that, following his brave act, "Muller was branded a trouble maker" and though later cleared from disciplinary charges he ended up poverty stricken - "lost his car, almost forfeited his home, and eventually died as he could afford neither the necessary medication nor the heart operation that would have extended his life."

The M&G has ascertained key aspects of the Scorpion's corruption probe on former Limpopo province premier, Ngaoko Ramatlhodi "from players in the companies involved, and from court documents and related sources." Wisani wa ka Ngobeni and Stefaans Br.mmer report that according to these sources the reputations and potential criminal prosecutions of both Ramatlhodi and Limpopo finance minister Thaba Mufamadi, who is also being probed, are at stake. The Scorpion's probe, which has stalled Ramatlhodi's possible appointment as successor to National Prosecuting Authority (NPA) chief Bulelani Ngcuka, as well as a lawsuit brought by rugby boss Brian van Rooyen, have enshrouded the Limpopo province in allegations of tender-rigging and financial favours to the African National Congress.

Hendrik Willem Jonker, a suspended former traffic officer and municipal manager of the Okhahlamba municipality in the KwaZulu-Natal Midlands, is still taking home his annual salary package of R403 000. According to a report by Bongani Mthethwa Jonker was suspended in May 2003 following his implication in allegations of financial irregularities. According to the Winterton Librarian, "...he works in the back office of the library...I don't have a clue what he is doing."

In another case, Pietermaritzburg's municipal manager Bheki Nene who earns an annual salary package of around R750 000 has been suspended on full pay "on allegations of administrative bungling and accusations that his big spending was ruining the city's finances." In yet another development, the municipal manager of the Umdoni council on the KwaZulu-Natal South Coast was suspended for 43 weeks and later fired after being found guilty of misconduct. The manager, Reshwant Brijraj, collected R300 000 while he was on suspension.

Angered by racism, as well as the dismissal of one of their members for refusing the Municipal Manager's request "to rewrite a report which investigated alleged corruption to do with electrical cables", hundreds of workers from Makana Municipality in the Eastern Cape downed tools and marched on the municipal offices against corruption. The South African Municipal Worker's Union (SAMWU), which has made a commitment "to fight corruption, nepotism and the misuse of public assets" is amongst other demanding a forensic audit into the finances of the municipality.

Two months after taking the running of a cellular network that carries its name, Vodacom is poised to withdraw from N igeria due to corruption allegations at Vodacom N igeria. Being partly owned by Telkom and Vodafone, both listed in New York, Vodacom and the two companies could, under US law, be liable to fines of hundreds of millions of dollars if proved to be involved in corruption. As a result of the corruption debacle two top Vodacom officials are expected to resign, reports Philip de Wet.
Full story in This Day (31 May 2004)

A three-year joint investigation by the Scorpions, Marine and Coastal Management (MCM) and the US authorities, has culminated in the incarceration of former Cape Town fishing magnate Arnold Bengis - former head of the now defunct firm Hout Bay Fishing (Pty) Ltd. According to a report by Melanie Gosling Bengis has been jailed by a New York federal court for three years and 10 months following being "the mastermind behind an international lobster and Patagonian toothfish poaching and smuggling syndicate." The poaching has had a dire effect on the South African rock lobster populations, "which had declined by 65% from 1987 to 2001", the period in which Bengis and his criminal accomplices operated.
Full Article in Cape Time (31 May 2004)

Dismissed former Transnet CEO Joe Ndhlela has been convicted on three counts of fraud and one of contravening the Companies Act, which involved a funeral policy scheme for Transnet employees. According to a Sapa report, "[t]he three counts of fraud involved fraudulent payment to a recruitment agency for the "recruitment" of three Transnet employees." He was however cleared on corruption charges by the court.

The six travel agencies - ITC, Star Travel, Business and Executive Travel, Ilitha Travel and Tours, Bathong Travel and Eyabantu - implicated in a scam in which false travel claims were made in MP's names, have been turned over to the Scorpions for prosecution. According to a report by Christelle Terreblance Scorpions spokesperson, Makosini Nkosi, could not confirm or deny that they have taken up the matter due to their policy not to comment on investigations.

Fearing ostracism from colleagues, a senior prison official has refused to testify at the Jali commission of inquiry on the alleged abuse of overtime payments to warders, unless he is transferred to a new job or given a severance package that could amount to R1 million." Marlene Burger reports that the officer had already been granted a similar request in the past after he blew the whistle on widespread medical-aid fraud by warders at the Westville Prison in KwaZulu-Natal. Jali Commission's secretary Charles Frank made it clear that though the officer's testimony would be valuable and useful, the commission can proceed without him as he is not the only witness who could be called on the overtime abuse.
Full Article in This Day (6 May 2004)

Reinstated former Grootvlei prison head warder Tatolo Setlai, who was suspended in January 2003 on allegations of corruption, vowed to continue fighting against corruption within the ranks of the Department of Correctional Services. Matefu Mokoena reports that Setlai "played a crucial role in exposing corruption in Grootvlei by allowing four inmates ... to film the much-publicised video on 22 corrupt warders." He maintains that his dream is to turn Grootvlei into a "corruption-free zone, like a convent."
Full Article in City Press (25 April 2004)

Prison warder Bhekisisa Vincent Shozi revealed to the Jali Commission of enquiry that his colleague and supervisor, Sidney "Biza" Thloloe, hired six former inmates to assassinate him and recover a vehicle, which he had appropriated when Thloloe failed to pay R4 000 owed to him for his assistance in a prison escape. According to a report by Gershwin Chuenyane,"
Full Story in Sowetan (23 April 2004)

The Jali commission heard the failed escape plan of two inmates, Victor Mhlanga and Thulani Khumalo, who injected themselves with Brasso(a chemical polish applied to brass objects) after paying a R20 000 fee (that was never refunded) to a person known only as Derrick in order to facilitate an escape. Gershwin Chuenyane reports that "Derrick's plan was to arrange Mhlanga and Khumalo be brought to Chris-Hani-Baragwanath Hospital so that they could escape." However the plan failed after the head of prison discovered that the inmates had injected themselves with brasso. Both inmates were treated for abscesses in hospital and were kept in leg irons for two weeks after returning to prison.
Full Article in Sowetan (30 May 2004)

Government is to unveil plans for a new social-security payment agency that will hopefully save it about R1.5 billion lost to corruption every year. Social development department spokesperson, Mbulelo Musi, says that the department envisages the social security agency as an entity that "would revolutionise service delivery to the poor by using new technology, by training staff and by improving coordination with other institutions involved in social development." Alameen Templeton reports Musi's comments that the rationalisation of the bantustan's nine payment systems and others inherited from the apartheid era, which had been a "natural breeding ground for corruption", would eradicate many opportunities for graft.
Full Article in This Day (May 2004)

At the last day of its three-day special congress, the National Union of Mineworkers (NUM) adopted strategies to address "opportunism and careerism" within its ranks. Zingisile Mapazi reports that opportunism and careerism have often seen the union "lose officials in strategic positions and then struggle to fill the resultant vacancies." Delivering his report MUM secretary-general Gwede Mantashe told delegates how "scores of union organisors were taking management jobs from the very companies with which they were supposed to negotiate on behalf of their members." Mantashe encouraged the declaration of gifts given the instances of bribery for which union officials have been punished".
Full Article in This Day (10 May 2004)

Parliament's chief legal adviser Anton Meyer advised parliament's mixture of new and long-term MP's that they will also be subject to the new Prevention and Combating of Corrupt Activities Act passed earlier this year. According to a report by Lynda Loxton, "[t]he penalties imposed for those found guilty of corruption under the new act were generally harsh, and could extend to life imprisonment."

Opening a hearing on corruption at the multilateral development banks, chairman of the U.S. Senate Foreign Relations Committee, Richard Lugar, charged that corruption - despite the World Bank's commendable efforts on combating it - remains a serious problem as corrupt use of World Bank funds may exceed $100 billion. According to a report by Carol Giacomo, Lugar "cited experts who calculated that between $26 billion and $130 billion of the money lent by the World Bank for development projects since 1946 has been misused." U.S. lawmakers' raised concerns about fraud and bribery allegations in projects it has funded including the Lesotho Highlands Water Project.

A new study by the Institute for Security Studies, which has revealed an overlap in the functions of the police and the Scorpions, triggered the criticism that having two units fighting organised crime is a waste of resources. Ernest Mabuza reports that one solution suggested by the study is that both units change their mandates and procedures. Research analyst in criminal justice Jean Redpath however saw the existence of both the Scorpions and the South African Police Service as an important safety net, as there is "more than enough work to go around for the" two entities. On the Scorpions performance Redpath says data for 2002-03 suggests that 90% of the cases prosecuted resulted in convictions. "This suggests that the Scorpions is astute in choosing to prosecute only those cases likely to be successful in court."

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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.org.za - Tel: 021 4617211
Andile Sokomani(ISS Research Assistant)
Pilisa Gaushe (Manager: ISS Corruption Resource Centre)

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"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".