Working to prevent state capture now and into the future
 
Dear Fellow South African,
 
Corruption is one of the greatest challenges our country confronts as we strive to improve the lives of all our people. State capture is one of the worst forms of corruption our country has experienced in recent times. State capture was the orchestrated theft of billions of rand through the capture of state institutions.
 
Our country is grateful to the actions of many South Africans who, acting as individuals and through various organisations across society, exposed state capture and in many ways ensured that decisive steps are taken to end it.
 
This week, it is exactly two years since the State Capture Commission held its final public hearing. Over the course of its work, the Commission heard evidence from over 300 witnesses and collected more than 1.7 million pages of documentary evidence.
 
In October last year, I submitted the government’s plan to Parliament in relation to the implementation of the Commission’s recommendations. Since then, significant progress has been made to implement various parts of the plan.
 
The State Capture Commission made 205 recommendations on the criminal investigation and possible prosecution of people and companies implicated in evidence before the commission.
 
To undertake this huge amount of work, the National Prosecuting Authority (NPA) and the Hawks set up an Integrated Task Force to coordinate investigations and prosecutions. There are currently nine cases in court, involving 41 accused people and 12 companies.
 
Significant progress has also been made in recovering the proceeds of crime. Freezing orders to the value of R13 billion have been granted to the NPA. A total of R5.4 billion has been traced and returned to the State. The South African Revenue Service has collected unpaid taxes as a result of evidence before the State Capture Commission.
 
While a necessary part of our response to state capture is to hold those responsible accountable for their actions and to recover stolen money, we are also making far-reaching legislative and institutional changes to reduce the potential for corruption.
 
Eight of the 14 new laws or legislative amendments identified in our implementation plan have been approved by Cabinet and tabled in Parliament. These address areas such as public procurement, the involvement of politicians in administrative matters, the conduct of public servants, the intelligence services, money laundering and electoral reforms. A further six draft laws are in the process of public consultation with stakeholders. Further research is being done on some of the recommendations of the Commission, such as making the abuse of political power a criminal offence.
 
The State Capture Commission also made recommendations about the establishment of additional anti-corruption bodies. These proposals are being considered as part of a broader review of the country’s anti-corruption architecture. Part of this work is being led by the National Anti-Corruption Advisory Council, which is working across society to build ethical values and mobilise the nation against corruption.
 
The Commission found that the public procurement system was the main site for the theft and abuse of state resources. The Commission found that a lot of corruption takes place in state-owned enterprises (SOEs), which have large budgets.
 
In response to the Commission’s recommendation on the issue of dealing with corruption in the procurement system, government submitted the Public Procurement Bill to Parliament in May 2023. This draft law will increase transparency in procurement processes, will introduce binding codes of conduct for people involved in procurement and will improved processes to disallow suppliers who contravene procurement laws. The Bill establishes the Public Procurement Office within the National Treasury, with powers to issue legally binding instructions and powers of search and seizure.
 
In furthering the government’s implementation of the State Capture Commission’s recommendations in relation to SOEs, the State-Owned Enterprises Bill will align the process for the appointment of SOE boards and executive management with the recommendations of the Commission. This law will improve oversight, transparency and accountability of SOEs.
 
The Commission found that state capture was further enabled by weak law enforcement capacity. It said that that there was “a deliberate effort to subvert and weaken law enforcement, intelligence and revenue collection agencies at the commanding levels of those institutions so as to shield and sustain illicit activities, avoid accountability and to disempower opponents.”
 
Over the last five years, we have done much work to restore the integrity and effectiveness of these institutions, including the appointment of capable and credible people to lead them.
 
While many people contributed to exposing and ending state capture, the role of whistle-blowers was particularly important. Many of the people who revealed wrongdoing suffered victimisation and hardship due to their courageous actions.
 
We have put forward clear and effective recommendations on whistle-blower protection and incentives. These recommendation propose a range of measures, such as criminalising threats against whistle-blowers, creating a fund for whistle-blowers dismissed because of their disclosures, and providing state protection for whistle-blowers and their families where necessary.
 
These are just some of the actions that have been taken to give effect to the government’s comprehensive and far-reaching response to the findings of the State Capture Commission. In the coming months, many of the processes underway will be completed and much more progress will be recorded.
 
While tangible progress is being made, it is clear to me that we will only be able to put state capture firmly behind us if all South Africans work together to rid our society of corruption in all its forms.
 
With best regards,