In South Africa, the national anti-graft unit is actively investigating alleged corruption cases at top state-owned companies, totaling over $7 billion. These investigations, ongoing since 2018, were reported by the Special Investigative Unit (SIU) to a parliamentary committee to provide an update on their progress. The companies under scrutiny include Transnet, Denel, Eskom, the National Lotteries Commission, South African Airways, and PRASA.
At Transnet alone, about 60 suspicious contracts and hundreds of cases of potential corruption involving nearly $4 billion of public funds are being investigated. Additionally, there are nearly 40 other ongoing investigations into corruption at various state-run businesses and government departments worth billions more. The scale of corruption uncovered by the SIU over the past 15 years indicates a significant issue within South Africa.
Allegations of widespread corruption emerged during former President Jacob Zuma’s administration, implicating government officials and business executives in kickbacks and bribery for government contracts. This culture of graft led to severe economic consequences, such as the near collapse of South Africa’s electricity supply due to corruption and mismanagement at Eskom, a key player in many scandals. The crisis at Eskom resulted in record nationwide blackouts last year.
One of the investigations revealed that over $540 million was lost to corruption at the passenger rail company PRASA, with funds allegedly stolen through payments to fictitious “ghost employees.” South Africa’s ruling party, the African National Congress, faced significant corruption allegations during Zuma’s tenure, which influenced the outcome of the recent national election where the ANC lost its parliamentary majority.
President Cyril Ramaphosa has committed to addressing corruption within his party and government and holding those responsible accountable. However, experts believe that recovering the misappropriated funds may prove challenging. The ongoing investigations and efforts to combat corruption in South Africa reflect a critical battle against graft within the nation’s institutions.
