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ents have been used to facilitate state capture in south africa with government contracts improperly awarded at inflated prices to politically connected tenderpreneurs sometimes to the detriment of quality and service delivery 31 32 33 a notable criticism of bbbee is that the policy has been co opted and repurposed by factions and powerful members of south africa s political elite mostly within the governing anc for the purposes of corrupt self enrichment at the expense of south africans who are not politically connected 34 35 36 37 thereby fueling the growth of corruption within south africa reducing economic growth and increasing unemployment 38 39 moeletsi mbeki has argued that bee is the biggest driver of corruption in south africa 38 bee fronting edit bee fronting is an abuse of the rules governing bee where qualifying persons are given a seat on the board of a company while having no decision making power in the company in order to qualify the company for government contracts in terms of bee 40 in june 2017 netcare a company which operates the largest private hospital network in south africa was accused of bee fronting 41 since then 17 other complaints have been filed against various south african companies regarding bee fronting 41 related to this is cadre deployment and employment which is an official anc policy to colonize the government with officials loyal to the anc 40 petty corruption edit petty corruption is a prevalent issue in south africa s public service sphere a survey conducted by the iss national victims of crime tested the extent and nature of petty corruption in south africa 42 one of the main issues highlighted by this survey is south africans lack of access to information regarding how to report corrupt acts 42 the fear of facing repercussions for whistle blowing and the pervasive belief that reporting corruption will not cause change are two other concerns revealed by the 2011 survey 42 respondents of the survey were most likely to pay bribes to traffic officials followed by police officers and officials in employment offices 42 these findings support the notion that the perception of corruption in local government departments such as traffic and municipal policing is high 42 the frequency of bribes involving police officers is concerning due to their role in tackling corruption and illicit behavior only 5 6 of south africans reported experiencing forms of petty corruption involving money favours and gifts 42 even though the percentage of experienced corruption is low the high perception of corruption has led respondents to prioritize corruption as the second most prevalent crime in the country 42 corruption scandals edit jacob zuma and corruption edit zuma s time in office was marked by controversy and numerous incidences of corruption his resignation on february 14 2018 came after months of pressure from the anc 43 in april 2018 it was announced that zuma would be prosecuted on 12 counts of fraud one of racketeering two of corruption and one of money laundering zuma faced corruption charges involving the us 2 5 billion south african arms deal 43 on 11 october 2019 a south african high court denied zuma a motion to withdraw the recent criminal charges against him 44 zuma was imprisoned for refusing to give evidence to the zondo commission resulting in the july 2021 unrest 45 46 52 nkandla edit main article nkandla homestead the nkandla homestead scandal involved the controversial and possibly corrupt 47 funding of president jacob zuma s personal homestead at public expense after a home invasion and the subsequent rape of one of zuma s four wives zuma accessed the means to upgrade security measures at his homestead 48 a report by south africa s public protector in 2014 found zuma had inappropriately allocated state funds to finance additional home improvements such as the addition of a swimming pool amphitheater visitor centre and cattle enclosure to his property among others 24 49 in 2018 south africa s highest court found mr zuma guilty of violating the constitution in regard to the lavish spending of r 246 million us 19 14 million of state funds on his homestead in nkandla 50 gupta family scandal edit main article gupta family a protest placard depicting gupta family member atul gupta at a protest against corruption during the zuma administration the slogan not my president on the placard explicitly links atul gupta with corruption and state capture associated with the presidency of jacob zuma zuma s close relationship with the gupta family has been highlighted in the former south african public protector s report on state capture 24 in 2016 the public protector thuli madonsela investigated the gupta family scandal after receiving a formal complaint from a catholic priest father stanslaus muyebe the state of capture report released by the public protector in 2016 reported on the dangers of state capture in south africa 51 the 355 page document reports mr zuma s preferential treatment of the gupta family and the involvement of jacob zuma s son and the gupta family 24 the allegations reported include the gupta family s involvement in the appointments and removals of members of the south african cabinet the unlawful awarding of state contracts to gupta linked companies or persons the banks preferential treatment of gupta owned companies and zuma s conflict of interest concerning his position and business dealings 24 the gupta brothers who have been major players in south african business for over a decade began growing their relationship with former president jacob zuma in 2003 when he occupied the office of deputy president since 2003 both parties benefited from an understanding wherein the gupta family financed the zuma family while president zuma appointed friendly officials and awarded lucrative state contracts to the gupta empire 52 south african authorities are seeking to recover up to us 4 07 billion lost to these gupta deals 52 jacob zuma s son duduzane and gloria ngeme zuma one of mr zuma s wives received large transfers and monthly salaries for positions held at one of the gupta firms the gupta family has engaged in numerous suspicious transactions involving a series of shell companies and state owned enterprises 24 the occrp has reported on transnet s contract with south china rail and subcontracts with gupta run organizations state controlled companies like eskom and transnet are at the centre of illicit deals with gupta companies 53 an arrest warrant for ajay gupta was issued in february 2018 54 some of the members of the gupta family those accused in the corruption case were reported as residing in the emirate of dubai as of 11 june 2021 55 the bank of baroda played an important role in facilitating irregular financial transactions for the guptas 52 russian nuclear deal edit russian president vladimir putin with south african president jacob zuma in 2017 in 2014 the zuma administration and the russian government put pressure on the south african government to sign a r1 trillion us 66 billion nuclear energy deal with the russian state owned enterprise rosatom to build and operate up to eight nuclear power plants in an effort to resolve the south african energy crisis 56 57 both the russian government and the zuma administration were criticized for forcing through the deal by attempting to circumvent south africa s procurement laws 57 the south african finance minister nhlanhla nene gave testimony to the zondo commission that he was fired for not approving a us 100 billion version of the deal in 2015 58 the deal was cancelled by court order in april 2017 57 eskom edit see also south african energy crisis the state owned national power utility eskom has experienced numerous corruption scandals since the start of the south african energy crisis in 2008 and increased in intensity from 2019 onward these range from outright theft of diesel for backup generators providing substandard coal for coal fired power plants and metal theft to sabotaging energy infrastructure so as to get contracts to do repairs 59 60 corruption particularly state capture has also negatively impacted the construction and operation of new power plants notably medupi and kusile 61 62 then eskom ceo andré de ruyter controversially stated in a public interview that four criminal syndicates had established themselves within eskom that corruption was costing the utility a billion rand a month roughly equivalent to us 53 9 million and that a senior anc mp was involved 63 64 de ruyter went on to say that load shedding is to a large extent attributable to crime and corruption within eskom 65 in december 2024 global consulting firm mckinsey was ordered to pay more than 122 million to resolve a u s investigation into a scheme in which officials at eskom and transnet were given bribes in exchange for non public information about consulting contracts 66 according to the u s department of justice mckinsey africa bribed south african officials in order to obtain lucrative consulting business that generated tens of millions of dollars in profits the arms deal scandal edit main article south african arms deal the arms deal formally known as the strategic defence package was a multi billion dollar deal involving arms acquisitions from countries such as germany and france 67 this arms deal set a precedent for cases of large scale corruption and high levels of bribery and embezzlement in the african national congress this arms deal came at a time when the aids epidemic was rampant throughout africa and poverty and inequality in the region still remained among the highest in the world taxpayers protested the arms deal through a public interest lawsuit claiming that the deal was unconstitutional and irrational 68 various south african and international evidence teams have been investigating the arms deal since the early 2000s 67 rumors of embezzlement bribes and kick backs by and between the external players in this procurement and that of the anc have prompted further investigations in 2011 former president zuma appointed a commission of enquiry headed by judge willie seriti 69 to investigate allegations of impropriety fraud and corruption around the 1998 arms deal 69 as of march 2018 jacob zuma has been facing 16 charges of corruption money laundering racketeering and fraud involving the 1998 arms deal 70 in total zuma has been accused of accepting 783 illegal payments including receiving bribes from a french arms firm via his financial advisor 70 in april 2018 two months after resigning from office zuma was charged with graft by a national jury 70 on 11 october 2019 a south african high court upheld all 16 charges against zuma 44 a 15 month prison sentence which was issued to zuma for contempt of court on this case would be reserved by the constitutional court of south africa on 12 july 2021 71 72 73 74 on 20 july 2021 it was agreed that former south african president jacob zuma s criminal trial for this case would begin on either august 10 or august 13 2021 75 76 prior to his imprisonment zuma threatened that his arrest would result in nationwide riots following his imprisonment in july 2021 triggered large scale riots and looting in kwazulu natal and gauteng provinces 46 52 sekunjalo investments iqbal survé edit sekunjalo investments a company owned by controversial south african businessman iqbal survé has been involved in a number of scandals and accusations of corruption these range from the qatargate corruption scandal at the european parliament 77 78 the alleged bypassing of normal processes by public investment corporation executives to receive public investments 79 and failed repayments on the investments 80 to allegedly problematic payments to various south african politicians 81 other notable corruption scandals edit 1990s edit the a n c has established a very clear pattern and the pattern is simple you can be whatever you like as long as you are loyal the minister of health may be responsible for sarafina but she is loyal so she will be defended the problem is you can t deal with corruption this way steve friedman center for policy studies 1996 82 the reverent allan boesak was found to have misappropriated donor funds in 1994 intended for his foundation for peace and justice causing significant public controversy 83 despite efforts by the anc government to clear instances of misappropriation 84 boesak was found guilty of stealing r332 000 in 1999 and convicted 85 in 1995 senior anc member winnie mandela was accused of receiving a us 20 000 bribe from a building contracting company so they could secure government tenders to build public housing 82 sarafina 2 was a government funded play based on the musical sarafina that was to increase awareness of the south african hiv aids epidemic in 1996 the anc and south african government were criticized for not taking action against health minister nkosazana zuma and other anc members accused of corruption and misconduct in organising the us 4 million play 82 anc member and deputy minister of environment and tourism bantu holomisa was expelled from the anc in 1996 after holomisa accused former transkei prime minister stella sigcau and a number of anc members of being involved in a corrupt relationship with the south african casino magnate sol kerzner 86 87 former president jacob zuma s financial advisor schabir shaik was sentenced to 15 years in 2005 for soliciting a bribe from a french arms company thales in 1999 the bribe was solicited on behalf of zuma when he was deputy president of south africa 70 then presidential spokesperson mac maharaj was implicated in the bribery scandal when investigated by the scorpions in 2003 88 2000s edit new national party politician abe williams was convicted in the year 2000 of corruption involving r240 112 and theft of r383 000 of donor funds intended for the upliftment of impoverished west coast communities 89 90 the 2004 oilgate scandal involved the transfer of r11 million from the state owned petrosa to the anc so as to help fund its re election campaign in the run up to the 2004 national elections 91 92 the mail guardian newspaper was controversially gagged by the courts from publishing a report on the scandal following the election 93 tony yengeni the anc s chief parliamentary whip was found guilty of fraud in 2005 after yengeni received a large discount on a luxury car from a firm bidding for a government contract 70 in 2007 goodwood police station commander siphiwu hewana was found guilty of attempting to defeat the ends of justice by tampering with the docket for convicted fraudster tony yengeni s arrest for driving under the influence 94 in 2005 the travelgate scandal exposed members of parliament who were found to have illegally used parliamentary travel vouchers in a fraud exceeding r37 000 000 for personal use as the cfo who identified the fraud reported i harry charlton fca jp can confirm 6 travel agents and 435 then past ...
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