SA corruption: no action following theft of R500bn during Zuma’s rule

When Cyril Ramaphosa replaced Jacob Zuma in 2017, a fresh wave of optimism about South Africa’s future swept through the country. But, nearly three years on, Ramaphoria has been replaced by Ramadisappointment. Since Cyril Ramaphosa embarked upon the Presidency in South Africa in February 2018, he has had to face a problem “within his own African National  Congress” where the Zuma-Magashule faction has been working against him. President Ramaphosa says he is taking a hands-on approach to fighting corruption linked to Covid-19 funds. But no meaningful action has yet been taken against the perpetrators of industrial scale state capture over the past decade and not a single high-profile politician has been convicted in connection with the theft of an estimated R500bn ($29 billion) from the state during Zuma’s rule. As Bloomberg notes, this is the same amount of the Covid relief package that South Africa has now so desperately had to fight for. – Nadya Swart

Graft shows Ramaphosa’s shaky hold on South Africa’s ANC

By Paul Vecchiatto and Mike Cohen

(Bloomberg) — South African President Cyril Ramaphosa’s tenuous control of the ruling party was laid bare at the weekend when its leaders rebuffed his proposal to investigate allegedly tainted state contracts for health equipment.

Ramaphosa called for a panel led by former President Kgalema Motlanthe to scrutinise deals secured by African National Congress officials, but was spurned at a meeting of the party’s National Executive Committee, according to three people who attended the gathering and spoke on condition of anonymity. Instead, they accepted Secretary-General Ace Magashule’s suggestion that the ANC’s integrity commission handle the matter, the people said.

Ramaphosa, 67, replaced Jacob Zuma as the ANC’s leader in December 2017, after narrowly winning an election against Nkosazana Dlamini-Zuma, Zuma’s ex-wife and favoured successor. Members of a party faction who were allied to Zuma and have loosely coalesced around Magashule won several other top party posts and seats on the NEC, leaving it deeply divided.

The ANC forced Zuma to quit as president in February 2018, after his scandal-marred nine-year tenure caused it to hemorrhage support, and replaced him with Ramaphosa. His tenure as party leader runs until late 2022 and as president until 2024, but he may seek re-election to both posts.

Stymied Efforts

While Ramaphosa has pledged to clamp down on endemic corruption, his efforts have been stymied by a lack of support from his party and a dearth of capacity within law-enforcement agencies. Not a single high-profile politician has been convicted in connection with the theft of more than 500 billion rand ($29 billion) from the state during Zuma’s rule, and the ANC hasn’t expelled any members that were implicated.

Allegations of officials abusing their positions have continued under Ramaphosa’s administration.

Khusela Diko, Ramaphosa’s spokeswoman, and Bandile Masuku, the political head of the health department in the central Gauteng province, were both forced to vacate their positions after it emerged they stood to benefit from contracts to supply the state with equipment to protect heath-care workers against Covid-19.

Two of Magashule’s sons also won contracts worth 2.7 million rand to supply goods and services to combat the coronavirus in the central Free State province, the Daily Maverick reported on July 31. Magashule, a former premier of the region, said he exerted no influence over the tenders, the news website said.

Ramaphosa has instructed nine government agencies to investigate possible impropriety regarding the Covid-19 contracts. And last week he urged the ANC to follow through on a resolution it took in 2017 — but never implemented — to suspend members who were facing investigation or disciplinary proceedings.

“We have an obligation to combat, root out and isolate the corrupt elements amongst us,” he said in an ANC memorial lecture that was delivered on his behalf. In his weekly letter to the nation on Monday, the president likened those who stole food parcels, unemployment benefits and other Covid-related aid to hyenas and said they would be dealt with decisively.

The ANC’s NEC said it was “outraged and deeply embarrassed” that some of its leaders and members tried to benefit unlawfully and voiced support for the measures announced by Ramaphosa to hold them accountable. It made no mention of any disagreement within its ranks over how graft should be addressed.

‘Moral Standing’

“Leaders and members of the ANC are expected to set an example to society by displaying the highest levels of integrity,” the NEC said in a statement on Tuesday. “The moral standing of the ANC has been severely damaged by the conduct of some of its members who, in fact, do not deserve to be in our ranks.”

Tyrone Seale, Ramaphosa’s acting spokesman, referred requests for comment to the ANC. Pule Mabe, the party’s spokesman, didn’t answer his phone or respond to queries sent by text message.

Despite his tough public stance against graft, Ramaphosa drew criticism at the weekend meeting for failing to bring the scourge under control, with Magashule declaring the problem worse than during the Zuma era, the three NEC members said. The president and his administration, other than Health Minister Zweli Mkhize, were also criticized by several NEC members for failing to contain the coronavirus, they said.

More than 516,000 people in South Africa have been diagnosed with the disease, the fifth-most in the world, and 8,539 have died.

Two of the NEC officials also revealed that:

  • Magashule’s proposal for the party’s integrity commission to probe the supply contracts won backing from the South African Communist Party and the Congress of South African Trade Unions, which have been long-standing Ramaphosa allies.
  • Ramaphosa was criticized for decreeing that evidence presented to a judicial commission of inquiry that is probing graft during Zuma’s rule be accessible to prosecutors.
  • The integrity commission tabled a report which states that it didn’t clear Deputy President David Mabuza of allegations of corruption that were leveled against him when he assumed office in 2018, as claimed by the party leadership. Mabuza has denied wrongdoing.

(Updates with comment from ANC’s NEC in fourth paragraph below story touts. An earlier version of this story corrected the spelling of the spokesman’s surname.)

Join the conversation on corruption:

Thursday (6th August) at noon –  Our colleague, veteran broadcaster Tim Modise, hosts this free-to-air webinar where he and the Biznews community ping questions at a high profile guest. This week it’s the head of the country’s great hope in the fight against corruption, Special Investigating Unit head Adv Andy Mothibi. Unmissable.

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