Study Unit 2: Corruption PDF

9/12/2023 Learning outcomes Corruption Study Unit 2 Dr K George Define Define the concept corruption. Discuss Discuss eight (8) examples of corrupt practices in the public sector. Discuss Discuss the consequences of corruption. Provide Provide an exposition of corruption and mismanagement...

9/12/2023 Learning outcomes Corruption Study Unit 2 Dr K George Define Define the concept corruption. Discuss Discuss eight (8) examples of corrupt practices in the public sector. Discuss Discuss the consequences of corruption. Provide Provide an exposition of corruption and mismanagement in the public service. Discuss Discuss the abuse of state institutions for political gain. Provide Provide an exposition of corruption between the state and the private sector. Provide Provide an overview of corruption by the police. Discuss Discuss the policing of political crime. Discuss Discuss the importance of whistle-blowing. Outline Outline the objectives of the Anti-Corruption Coordinating Committee (ACCC). 2 Introduction ▪ Most common form of political crime in SA ▪ Corruption statutory crime ▪ Definition of corruption according to section 3 of the Prevention and Combating of Corrupt Activities Act 12 of 2004. ▪ Corruption is an attempt by individuals or groups to subvert current rules and generate extra-legal income and wealth for themselves. ▪ Corruption is also an abuse of entrusted power for private gain. Page 424-427 1 book chapter 3 Examples of corrupt practices in the public sector Abuse of power – using one’s vested authority to improperly benefit another person Extortion – coercing a person to provide a benefit in exchange for acting (or failing to act) in a particular manner Insider trading - using privileged information for personal gain (e.g information about the buying or selling of shares before it is communicated to the general public) Favouritism and nepotism – providing services or resources according to personal preference and not by proper process; Ensuring family members are appointed to positions or receive contracts (Not in the book chapter – class notes only) 4 1 9/12/2023 Examples of corrupt practices in the public sector Conflict of interest – acting in two different roles that are at cross-purposes to each other, where the actions in one interest could directly influence the other interest Fraud - actions or behaviours that fool others into providing a benefit that would not normally accrue to that person Embezzlement - theft of resources by persons entrusted with the authority and control of such resources Bribery - exchanging a benefit to improperly influence the actions of a public servant (Not in5 the book chapter – class notes only) Corruption and mismanagement in the public service ▪ Rampant corruption in all levels of government ▪ Examples – Eskom, SABC, SAA ▪ Majority of state owned enterprises had no permanent chief executive officers ▪ Common feature of these enterprises – huge sums of money received from public purse, mismanagement & misappropriation of funds. (Pages 442-443) 7 Consequences of corruption ▪ A suffocated civil society ▪ An economically unjustifiable public wage bill ▪ Inequalities in the distribution of income and wealth ▪ Marginalisation of the state in global affairs ▪ High external debt and degradation of the natural environment (Pages 432-433) 6 Abuse of state institutions for political gain ▪ SA is a constitutional state ▪ Equality before the law and access to legal recourse ▪ State institutions must be vigorously protected and closely observed ▪ Decline in constitutional democracy ▪ Can the same institution(s) restore the confidence in itself? ▪ When the state is the aggressor, can the state also be the agent of reparation? (Page 443) 8 2 9/12/2023 Corruption: the state and the private sector Corruption by the police All police officials charged with extensive powers Armed by the state Huge responsibilities bestowed upon police officials Easier to pay a bribe instead of a fine Police corruption is not limited to lower ranking officials Factors contributing to corruption Different types of corrupt activities Corrupt triangle Perceived pressure Perceived opportunity Rationalisation ▪ Politicians and public servants take decisions on all public projects ▪ Private sector has vested interest in these decision-making processes and responsibilities. ▪ Buying of political influence ▪ Public funding bill ▪ Precipitating factors for involvement in corruption ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ - (Pages 443 – 445) (Pages 445 – 446) 9 10 Policing political crime Whistle-blowing ▪ Policing of state crimes should be based on the following principles: - Separation of powers - Decentralised authority - Significant autonomy for policing agencies ▪ Management integrity ▪ Human factors = weakest link ▪ User integrity ▪ Importance of risk, governance and compliance systems (Page 448) ▪ Definition- disclosure of information about illegal or other undesirable practices occurring inside an organisation by former or present members of a public or private organisation, in order to attract some or other form of corrective action. ▪ A whistle-blower often has ulterior motives. ▪ Whistle-blowing benefits society as it serves as a deterrent. ▪ Unhindered, objective media reporting could be seen as a form of whistle blowing. ▪ Investigative journalism 11 (Page 449) 12 3 9/12/2023 SA anti-corruption measures ▪ Establishment of Directorate of Special Operations (Scorpions) in 1999 - Had a high profile - Law enforcement success - Unit became its own worst enemy ▪ Replaced by Directorate for Priority Crime Investigations (HAWKS) (Page 449) 13 SA anti-corruption measures…..cont Objectives of the Anti-corruption Coordinating Committee (ACCC): Ensuring coordination and integration of anti-corruption initiatives in the public service; Avoiding duplicating initiatives and efforts in the fight against corruption in the public service; ▪ Providing a forum for the various departments to share information on anti- corruption prevention, detection and investigation and other initiatives; ▪ Serving to oversee and monitor implementation of the public service anti-corruption strategy, and ▪ Ensuring the effective implementation of the public service anti-corruption strategy. SAPS Anti-corruption strategy’s 4 pillars: ▪ Prevention ▪ Detection ▪ Investigation ▪ Resolution ▪ ▪ (Page 450) 14 4