South Africa to Face Billions in Unaccounted Corruption
Corruption probe reveals shocking scale of allegations
South Africa is grappling with over $7 billion in alleged corruption at several top state-owned companies, according to a new report published by the Special Investigative Unit (SIU). The vast corruption scandal involves six companies, including Transnet, Denel, Eskom, National Lotteries Commission, South African Airways, and Passenger Rail Agency of South Africa (PRASA).
The SIU’s report suggests that the investigations, which have been underway since 2018, involve scores of suspicious contracts and cases of conflict of interest. At Transnet, approximately 60 contracts worth nearly $4 billion are under scrutiny. The findings reveal a widespread corruption scheme, where government officials and executives embezzled millions by offering bribes to business partners for government contracts.
The culture of graft became particularly entrenched during the administration of former President Jacob Zuma, who ruled the country from 2009 to 2018. Many top officials and executives were found to have taken kickbacks and bribes from businessmen, resulting in a monumental scandal that shook the country to its core.
One of the notable corruption cases is PRASA, which allegedly lost $540 million, including a scheme where nearly $300 million was stolen in the guise of payments to over 1,200 “ghost employees” who never existed.
The scandal has had a devastating impact on the economy, including the near collapse of power utility Eskom due to rampant graft and mismanagement. South Africa suffered record blackouts due to the crisis, plunging households and businesses into darkness.
The ruling party, African National Congress (ANC), under current President Cyril Ramaphosa, has pledged to clean up the government and justice system. However, experts say the tainted officials may not be held accountable and many millions will remain unfished.
This is yet another stark reminder of the importance of integrity in governance, highlighting the need for ongoing reforms and accountability mechanisms to combat grand corruption and restore trust in the justice system.
