Rob Hersov: The systematic corruption of SA's ANC government - A four-pronged analysis of cadre deployment and state capture

Key topics:ANC's cadre deployment policy eroded state capacity and professionalismZuma-era state capture looted billions and crippled key institutionsBEE and EWC used for elite enrichment, not broad economic reform.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.The auditorium doors will open for BNIC#2 on 10 September 2025 in Hermanus. For more information and tickets, click here..By Rob Hersov* .IntroductionSouth Africa's transition from apartheid to democracy in 1994 was hailed as one of the most remarkable political transformations of the 20th century. However, three decades later, the African National Congress (ANC) government stands accused of orchestrating one of the most comprehensive systems of institutional corruption in modern democratic history. Through its cadre deployment policy and systematic capture of state institutions, the ANC has fundamentally altered the nature of South African governance, transforming what should have been instruments of public service into tools of political patronage and personal enrichment.I have focused on four distinct but interconnected areas where the ANC's systematic corruption has taken root: state capture, democratic institution capture, judiciary capture, and economic capture through policies like Black Economic Empowerment (BEE) and Expropriation Without Compensation (EWC). Each represents a different facet of how a liberation movement has evolved into what critics describe as a corrupt political machine that prioritizes party loyalty over competence, personal enrichment over public service, and ideological control over democratic governance.The Foundation: Cadre Deployment PolicyAt the heart of the ANC's systematic corruption lies its cadre deployment policy, formally implemented around 1997 [1]. This policy, which the Institute of Race Relations more accurately describes as a "cadre employment policy," represents a fundamental violation of South Africa's Constitution, specifically Section 197, which states that "no employee of the public service may be favoured or prejudiced only because that person supports a particular political party or cause" [1].Cadre deployment is defined as the practice whereby a political party places its activists in positions of power within state institutions to achieve strategic and ideological goals by spreading influence across all spheres of society [1]. The ANC's motivation for this policy is threefold: extending party power and influence over both public and private sectors, advancing the National Democratic Revolution (NDR) to transform South Africa into a socialist and then communist state, and creating a system of patronage to reward party loyalty [1].What makes this policy particularly insidious is that it prioritizes political allegiance over competence, effectively transforming the civil service from a professional body serving the public interest into an employment scheme for ANC loyalists. As the Institute of Race Relations notes, this policy "keeps ANC cadres employed while eroding the quality of our civil service" [1]. The result has been a systematic degradation of state capacity, with crucial government departments manipulated for individual benefit rather than public service.State Capture: The Zuma Era and BeyondThe most dramatic manifestation of the ANC's systematic corruption occurred during the presidency of Jacob Zuma (2009-2018), a period now synonymous with "state capture." The term describes a form of systemic political corruption where private interests significantly influence a state's decision-making processes to their own advantage [2]. The Zondo Commission, which investigated this period from 2018 to 2022, produced over 5,000 pages of forensic detail documenting how "almost every arm of the state was suffocated and left bankrupt by ANC leaders" [2].The commission's findings revealed that the wealthy Gupta brothers—Ajay, Rajesh, and Atul—orchestrated widespread corruption with Zuma's direct assistance [2]. Zuma's son, Duduzane, served as the "conduit between the Guptas and government," facilitating the awarding of government contracts to Gupta-linked companies [2]. Perhaps most damaging was the revelation that Zuma colluded with former spy chief Arthur Fraser to halt investigations into the Gupta family in 2011, effectively paving the way for systematic looting of state resources [2].The scope of institutional damage was breathtaking. The commission documented how state capture crippled the South African Revenue Service, brought the national carrier South African Airways to its knees, facilitated the looting of the passenger railway agency, interfered with the public broadcaster SABC, and weakened the secret service through strategic appointments that prevented investigations [2]. As Chief Justice Raymond Zondo concluded, "The ANC under Zuma permitted, supported and enabled corruption," with the "blurring of lines between the ANC and the state" laid bare [2].The timeline of state capture became visible to the public around 2013, when Zuma allowed the Gupta brothers to land a commercial plane at a military base for a wedding—a clear breach of national security [2]. Public Protector Thuli Madonsela's 2016 report detailed the connections between the Guptas and government, leading to the establishment of the judicial commission [2]. However, the damage was already extensive, with billions of dollars looted from state coffers that should have supported South Africa's health service and education system [2].Democratic Institution CaptureThe ANC's systematic corruption extends beyond individual cases of graft to encompass the capture of democratic institutions themselves. This process involves the strategic placement of party loyalists in key positions within institutions that are constitutionally mandated to be impartial and serve society as a whole [1]. The cadre deployment policy has been the primary mechanism for this institutional capture, with party interests consistently prioritized over institutional integrity..Read more:.Restoring federalism: A path to transformative governance in South Africa - Ayanda Zulu.The impact on democratic governance has been profound. Institutions that should serve as checks and balances on executive power have instead become extensions of the ruling party's political apparatus. The National Prosecuting Authority, for example, has been compromised through strategic appointments that have hindered corruption investigations [2]. Similarly, key regulatory bodies and oversight institutions have been weakened through the appointment of individuals whose primary qualification is loyalty to the ANC rather than professional competence.This institutional capture has created what political analysts describe as a "blurring of lines between the ANC and the state" [2]. Government departments are used for the benefit of individuals rather than the public, resulting in what Dr. Mcebisi Mdletyana characterizes as the manipulation of crucial government functions for political influence [2]. The result is a democratic system where institutions designed to serve the public interest have been repurposed to serve party political ends. Judiciary Capture: Threats to Judicial IndependenceWhile South Africa's judiciary has generally maintained greater independence than other state institutions, it has not been immune to attempts at capture and influence. The systematic nature of ANC corruption has created pressure on judicial independence through various mechanisms, including attempts to influence judicial appointments and create a climate of intimidation around corruption investigations.The Zondo Commission itself represents both the resilience of judicial independence and the threats it faces. Chief Justice Raymond Zondo's willingness to investigate and expose the highest levels of ANC corruption demonstrates the continued strength of judicial institutions [2]. However, the commission also revealed attempts to compromise judicial processes, including efforts to halt investigations and influence prosecutorial decisions [2].Public confidence in the judiciary remains a concern, with surveys indicating that one in three South Africans believe that "most" or "all" judges and magistrates are involved in corruption [3]. While there has been no definitive evidence of widespread judicial corruption, the perception of compromise threatens the legitimacy of the entire judicial system. The challenge facing South Africa's judiciary is maintaining independence while operating within a broader system where other institutions have been systematically compromised.Perhaps nowhere is the ANC's systematic corruption more evident than in its manipulation of economic transformation policies. Black Economic Empowerment (BEE), originally designed to address the economic inequalities of apartheid, has been transformed into what Professor William Gumede of the Wits School of Governance describes as "a model of corruption" [4].Gumede's research reveals the staggering scale of this economic capture: "Conservatively, R1 trillion has been moved between under 100 people since 1994. The same people have been empowered and re-empowered over and over" [4]. This represents one of the largest transfers of wealth in South African history, but rather than achieving broad-based economic transformation, it has created what Gumede characterizes as an elite capture system where "people set up companies just to get a contract" [4].The failure of BEE to achieve its stated objectives is evident in South Africa's persistent inequality. Rather than creating "millions of black South Africans who have R500,000 each," as Gumede suggests should be the goal, the policy has created "a small group of billionaires" connected to the ANC and trade unions [4]. Genuine entrepreneurs who lack political connections are systematically excluded from BEE benefits, while politically connected individuals benefit repeatedly from the same system [4]..Read more:.South Africa’s crime intelligence scandal deepens: Nepotism and cover-up allegations expose systemic corruption.The Institute of Race Relations describes BEE as "an elitist policy that benefits the connected few while keeping millions in poverty" [5]. The policy has actively discouraged business investment in South Africa, with companies like Starlink being blocked from entering the market to protect BEE elites [5]. This represents a fundamental perversion of transformation policy, where measures designed to promote economic inclusion have become mechanisms for elite enrichment and economic exclusion.Expropriation Without Compensation: The Latest FrontierThe most recent manifestation of the ANC's economic capture strategy is the Expropriation Without Compensation (EWC) policy, which became law when President Cyril Ramaphosa signed the Expropriation Act on January 24, 2025 [6]. This law allows the state to seize land without compensation in circumstances deemed "just and equitable and in the public interest" [6].While proponents argue that EWC addresses the slow pace of land reform—with black people owning only a small fraction of farmland more than 30 years after apartheid—critics see it as another mechanism for political control and potential corruption [6]. The law replaces the previous "willing seller, willing buyer" principle with state discretion over compensation, creating opportunities for political manipulation and selective enforcement [6].The political opposition to EWC reflects broader concerns about the ANC's approach to economic policy. The Democratic Alliance "strongly opposes" the law and is consulting with lawyers, while the Freedom Front Plus has vowed to challenge its constitutionality [6]. Even the Economic Freedom Fighters, despite supporting land redistribution, have called the law a "legislative cop-out" [6]. This broad opposition suggests that EWC, like BEE before it, may become another tool for elite capture rather than genuine transformation.Conclusion: The Cost of Systematic CorruptionThe systematic corruption of the ANC government represents one of the most comprehensive examples of institutional capture in modern democratic history. Through its cadre deployment policy, the party has transformed South Africa's state institutions from instruments of public service into tools of political patronage and personal enrichment. The four areas of focus —state capture, democratic institution capture, judiciary capture, and economic capture—demonstrate how corruption has become embedded in the very structure of South African governance.The human cost of this systematic corruption is immeasurable. Resources that should have been invested in education, healthcare, infrastructure, and economic development have instead been diverted to enrich a small group of politically connected individuals. The R1 trillion moved through BEE corruption alone could have transformed millions of lives through genuine empowerment programs [4]. Instead, South Africa faces persistent poverty, unemployment, and inequality while a connected elite accumulates vast wealth.The 2024 elections, which saw the ANC lose its parliamentary majority for the first time since 1994, suggest that South Africans are beginning to hold the party accountable for its systematic corruption [7]. However, the damage to institutions and democratic culture may take decades to repair. The challenge facing South Africa is not simply removing corrupt individuals from power but rebuilding institutional integrity and restoring public trust in democratic governance.The ANC's transformation from liberation movement to corrupt political machine serves as a cautionary tale for democracies worldwide. It demonstrates how policies designed to promote transformation, and empowerment can be perverted into mechanisms of elite capture when implemented without proper oversight and accountability. Most importantly, it shows how systematic corruption, once embedded in institutional structures, becomes self-perpetuating and increasingly difficult to eradicate.As South Africa moves forward under a coalition government, the question remains whether the country can break free from the systematic corruption that has defined the ANC era. The answer will determine not only South Africa's future but also serve as a test case for whether democratic institutions can recover from comprehensive capture by corrupt political elites.--- References[1] Institute of Race Relations. "ANC Cadre Deployment: What is it?" Available at: https://irr.org.za/fan/media/anc-cadre-deployment-what-is-it[2] BBC News. "South Africa's Zondo commission: Damning report exposes rampant corruption." June 23, 2022. Available at: https://www.bbc.com/news/world-africa-61912737[3] UNODC. "Public Confidence in the Judiciary: a South African perspective." Available at: https://www.unodc.org/res/ji/import/academic_articles_and_books/Public_Confidence_in_the_Judiciary/Public_Confidence_in_the_Judiciary.pdf[4] Daily Investor. "R1 trillion moved between 100 politically connected individuals through BEE." May 30, 2025. Available at: https://dailyinvestor.com/south-africa/89445/r1-trillion-moved-between-100-politically-connected-individuals-through-bee/[5] Institute of Race Relations. "Parliament must hold the government accountable for BEE failures." Referenced in Daily Investor article above.[6] BBC News. "Cyril Ramaphosa signs expropriation bill in South Africa." January 24, 2025. Available at: https://www.bbc.com/news/articles/cvg9w4n6gp5o[7] Africa Centre for Strategic Studies. "South Africa's Seismic Political Shift." June 7, 2024. Available at: https://africacenter.org/spotlight/south-africas-seismic-political-shift/.*Rob Hersov South Africa businessman and patriot

Rob Hersov: The systematic corruption of SA's ANC government - A four-pronged analysis of cadre deployment and state capture

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