A report released by the Special Investigative Unit (SIU) has revealed the staggering extent of alleged corruption within South Africa’s state-owned enterprises.
The SIU is currently investigating over $7 billion in suspicious transactions across six major companies, including Transnet, Denel, Eskom, the National Lotteries Commission, South African Airways, and PRASA.
Some of the investigations date back to 2018, and they encompass a wide range of alleged corrupt activities, from conflict of interest to outright theft.
For example, at Transnet alone, the SIU is probing nearly 60 suspicious contracts and hundreds of cases of corruption, totaling approximately $4 billion.
The SIU’s report highlights the pervasive nature of corruption within South Africa’s government during the administration of former President Jacob Zuma.
The judicial inquiry into high-level corruption during that era implicated numerous officials and executives in taking bribes and kickbacks in exchange for government contracts.
The consequences of this rampant corruption have been devastating for South Africa’s economy.
The near-collapse of Eskom, the country’s power utility, has led to severe power shortages and widespread disruptions.
The SIU is investigating over 270 contracts at Eskom, worth around $2.2 billion, and believes that $540 million was lost to corruption at PRASA, the passenger rail company.
President Cyril Ramaphosa has vowed to combat corruption and bring those responsible to justice.
However, anti-corruption experts warn that recovering the billions of dollars lost to corruption may be a daunting task.
The SIU’s report serves as a stark reminder of the challenges facing South Africa as it seeks to rebuild its economy and restore public trust.