National Integrity Systems 2005 National Integrity Systems Transparency International Country Study Report Final Draft South Africa 2005 Report Author Hennie van Vuuren Senior Researcher Anti-Corruption Strategies Institute for Security Studies (ISS) Cape Town, South Africa E-mail: [email protected] National Integrity Systems 2005 Acknowledgements S Institute for Security Studies (ISS) Anti-Corruption Programme Research Interns, who assisted with aspects of the initial desktop research and commented on draft versions, particularly Phindile Wilhemina Xaba (MA, University of Cape Town), Nobuntu Mtwa (MPA, University of the Western Cape) and Andile Sokomani (MA, University of Cape Town). S Transparency South Africa (T-SA) and in particular Board members Dr. Daryl Balia and Hassen Lorgat for their support and commitment to the completion of the report. S Marianne Camerer, formerly with the ISS and now Director of the Global Access Project at the Centre for Public Integrity, who acted as a consultant to the project prior to her departure for Washington DC. S National Integrity Systems (NIS) Focus Group Participants, who commented on an earlier draft of this report: S Colm Allan, Public Service Accountability Monitor; S Dr. Daryl Balia, T-SA; S Lorato Banda, Political Information and Monitoring Service, Idasa; S Ishara Bodasing, Department of Public Service and Administration Anti- Corruption Unit; S Supt. Jenny Cunnigham, Strategic Management Development, South African Police Service; S Director Naresh Lutchman, Strategic Management Development, South African Police Service; S Mamiki Mosheshe, Office of the Public Protector; S Duxita Mistry, Senior Researcher, ISS; and S Dr. Ugi Zvekic, United Nations Office on Drugs and Crime – Southern Africa. The National Integrity Systems TI Country Study Report South Africa 2005 was made possible by funding from the United Kingdom Government’s Department for International Development. All material contained in this report was believed to be accurate as of March 2005. Every effort has been made to verify the information contained herein, including allegations. Nevertheless, Transparency International does not accept responsibility for the consequences of the use of this information for other purposes or in other contexts. © 2005 Transparency International Transparency International Secretariat Otto-Suhr-Allee 97-99 10585 Berlin Germany http://www.transparency.org South Africa 2 National Integrity Systems 2005 Contents List of tables ......................................................................................................................... 4 List of figures ....................................................................................................................... 4 Abbreviations ....................................................................................................................... 5 Executive summary ............................................................................................................. 8 Country overview................................................................................................................. 9 Corruption profile............................................................................................................... 12 Causes and consequences .................................................................................12 Measuring the impact .......................................................................................23 The National Integrity System .......................................................................................... 30 Executive ........................................................................................................30 Legislature ......................................................................................................33 Political parties ................................................................................................42 Independent Electoral Commission .....................................................................44 Supreme Audit Institution .................................................................................45 Judiciary .........................................................................................................48 Civil service .....................................................................................................52 Police and prosecutors ......................................................................................57 Public procurement...........................................................................................64 Public Protector (Ombudsman)...........................................................................68 Investigative/Watchdog Agencies .......................................................................71 Media .............................................................................................................82 Civil society .....................................................................................................87 Provincial and local government .........................................................................91 Cross-sectoral initiatives ...................................................................................98 Private sector ..................................................................................................99 Anti-corruption activities ................................................................................................ 104 Discussion of key issues ................................................................................................ 114 The NIS ........................................................................................................ 114 Effectiveness of government and donor-supported activities ................................ 117 Priorities and recommendations ....................................................................... 119 Endnotes........................................................................................................................... 124 References........................................................................................................................ 137 Legislation………………………………………………………………………………………..144 Interviews………………………………………………………………………………………………………………………….146 South Africa 3 National Integrity Systems 2005 List of tables Table 1 Prosecutions and convictions under the Corruption Act.....................................25 Table 2 Markinor Omnibus survey question................................................................28 Table 3 The state of parties represented in the National Assembly3rd Term (2004–2009).35 Table 4 Submission of financial disclosure forms.........................................................56 Table 5 Commercial crime cases...............................................................................58 Table 6 Corruption within the SAPS 1996–2001..........................................................59 List of figures Figure 1 Percentage of all those who were asked to pay a bribe in the past year, by department or sector.........................................................................................26 Figure 2 Percentage of respondents, of those who were asked, who paid the bribe, in the past year .........................................................................................................27 Figure 3 Reasons for Not Reporting Requests for Bribes to the Authorities, All Respondents ......................................................................................................................28 Figure 4 The NPA....................................................................................................63 Currency The South African Rand (R) is used as the unit of currency throughout this report. At the time of finalising this study (March 2005), the currency had the following approximate exchange value with major trading currencies: USD$1= R6 GBP£1= R11 Euro€1= R8 It should be noted that the Rand has fluctuated against all major currencies in recent years. The value of the currency moved from trading on par with the US dollar in the early 1980s to approximately R4:$1 by the late 1990s. During late 2001/early 2002 the currency was placed under severe pressure by speculators and it depreciated to an all time low of R10:$1. Despite showing promising signs of continued buoyancy since 2003, currency fluctuation has caused massive swings in the price-tags of large procurement deals such as the ‘arms deal,’ which was concluded in 1999. South Africa 4 National Integrity Systems 2005 Abbreviations ACDP African Christian Democratic Party AFU Asset Forfeiture Unit AGSA Auditor-General of South Africa ANC African National Congress AU African Union BAC Business Against Crime BAE British Aerospace Systems BIS Budget Information Service (Idasa) BSA Business South Africa BUSA Business Unity South Africa Case Community Agency for Social Enquiry CCAR Country Corruption Assessment Report CEO Chief Executive Officer CHAMSA Chambers of Commerce and Industry South Africa Cosatu Congress of South African Trade Unions Core Co-operative for Research and Education CBO Community Based Organisation CSO Civil society organisations CSVR Centre for the Study of Violence and Reconciliation DA Democratic Alliance DPLG Department of Provincial and Local Government DPSA Department of Public Service and Communication DSO Directorate of Special Operations