Friday, June 14, 2013

Naming and shaming only part of battle

“Finally” may well be the response of the vast majority of South Africans who have no vested interest in corruption and fraud, to government’s “name and shame” initiative to expose fraudsters.
On Sunday, Justice Minister Jeff Radebe released the names of 42 people from across the country who have been convicted of fraud against the government. Given what the public has come to know through media reports about the extent of the fraud by government officials, those named represent the tip of the iceberg of the scourge of criminal activity by those in positions of trust in the public service.
Radebe’s department says the 42 were linked to priority cases which were fast-tracked because of the huge amounts involved. But a staggering 3600 government officials have been convicted of defrauding the state in the past financial year alone, with a combined financial value reaching R1 billion.
Such a tsunami of corruption in the public sector – and focusing on corruption in this sector does not exonerate private sector fraud - has serious consequences for our country. The analysis underpinning the National Planning Commission’s work identifies “rising corruption” as among key indicators of a declining country.
It was a notable feature of earlier post-apartheid governments that the policies which were developed took account of global best practice. This is best exemplified by our constitution, the envy of democrats in many jurisdictions. It became patently clear, however, that government’s ability – and desire - to apply policy evenly and consistently was sorely lacking.
An example of good policy is the law which probably underpinned the convictions thatRadebe disclosed, the Prevention and Combating of Corrupt Activities Act. This legislation has many useful features, including the register of tender defaulters. It was passed in 2004, yet apparently it has taken almost a decade for it to have any significant, widespread effect.
Sadly, today, it cannot even be argued that government policy will always be in the best interests of the majority – and fully recognise all the basic rights of minorities. Special interests, perverse self-aggrandisement and party political policy blind spots have put paid to that. As a result, it is not unreasonable to fear that weak policy formulation will combine with feeble application of the policy to ensure continued, wanton plundering of State resources.
Radebe’s department has correctly stated that these corrupt officials earn huge salaries even as they defraud the government entities employing them. As disgusted as we must be by the direct loss to the fiscus of their actions, it is the potentially more deleterious impact on the progress of service delivery in our country which must alarm all South Africans.
When resources are diverted into the pockets of crooked officials and their associates, it is the poorest of the poor who suffer, as the provision of a host of services is severely curtailed or completely dumped.
Absent the schemes to steal obscene amounts of money from the public purse, our citizenry way well have been more understanding – up to a point - of government’s faltering efforts to change their parlous conditions. But the large-scale evidence of fraud and corruption over almost two decades of democracy has seriously undermined the faith of ordinary citizens in our democratic process and put paid to any patience that disadvantaged South Africans mayhave had that their lot will change.
An ethical disposition was at the heart of the Batho Pele (people first) principle which government applied for a period and then booted out and there must be renewed efforts to promote virtuous service in our public sector.
In addition, there are signs – for example, Transparency International’s Corruption Perception Index – that South Africa’s international standing – not least as an investment destination - has taken a serious knock since 1994 as a result of the endemic fraud and corruption in our public sector.
In his Budget speech this year, Finance Minister Pravin Gordhan made an astoundingly defeatist admission: Efforts to combat corruption in the State procurement system had “too many points of resistance” and officials’ failed efforts to staunch the illegal outflow of State funds had “yielded rich pickings for those who seek to exploit it”. Well, of course it had. Did he or anyone else in the democratic government seriously think fighting corruption – like any other initiative of a post-apartheid regime - was simply going to be a walk in the park?
(Ironically, that speech also linked corruption and the need to address employee grievances in the R71.4 million allocation to the Public Service Commission.)
Human Rights Watch has raised the importance of governments holding all representatives of the state subject to the rule of law. In South Africa, until now, there has not been a reasonable expectation on the part of crooked officials that their misconduct would land them in court.
So, there are sufficient reasons to fully support signs of a flexing of muscles by government towards those who willy nilly divert resources from the poorest of the poor to their own well-lined pockets.
However, a caveat to this support is necessary:  Unless corruption is tackled at the highest levels of the government and not simply confined to functionaries in the bureaucracy, efforts to change our society through naming and shaming or any other initiative, will be hamstrung.Governments – to coin a phrase – rot from the top. And, yes, Nkandlagate in all its aspects,does come to mind.
Importantly, politicians must also be held accountable for incidents of crime which happen on their watch within their ambit of responsibility. Self- or party-serving executives at local, provincial and national levels who pursue vulgar cronyism must be held accountable.Anything less will not rid our country of this collective shame of corruption.
Gordhan also said in his Budget speech that there are “too many people who have a stake in keeping the system the way it is”.
Damn right. - Ray Hartle

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