The submission of Cabinet’s response to the recommendations of the Judicial Commission of Inquiry into Allegations of State Capture, Corruption, and Fraud in the Public Sector is a strong and unambiguous proof of the democratic system at work.
President Cyril Ramaphosa said that the reaction represents an ethical, moral, and institutional shift from the State Capture Commission-revealed misdeeds.
“The actions we are taking and the implementation of the Commission’s recommendations are designed to provide redress in respect of the events of the past and to advance the renewal of our society.
“Through the implementation of the actions contained in this response, we can start a new chapter in our struggle against corruption,” the President said in his address to the nation in response to the State Capture Commission Report at the Union Buildings on Sunday.
The Cabinet’s response to the recommendations of the Judicial Commission of Inquiry into Allegations of State Capture, Corruption, and Fraud in the Public Sector was presented to Parliament by the President on Saturday.
He emphasised that the reaction to the State Capture Commission’s recommendations may include the execution of a suggestion as outlined in the report, the adoption of a portion of a recommendation, or, if there are compelling reasons, a decision not to execute a recommendation.
The Commission gave nearly 350 recommendations.
The Commission, chaired by Chief Justice Raymond Zondo, was constituted as part of the corrective measures outlined in the Public Protector’s 2 November 2016 report.
The President highlighted that the Commission’s report notes that state capture was facilitated by “a deliberate effort to subvert and weaken law enforcement and intelligence agencies so as to shield and sustain illicit activities, avoid accountability and to disempower opponents”.
Since 2018, substantial measures have been made to bolster the South African Police Service (SAPS), the Hawks, the National Prosecuting Authority (NPA), the South African Revenue Service (SARS), the Special Investigating Unit (SIU), and other essential agencies.
Since then, 4 500 convictions for corruption and other high-priority offences have resulted from the appointment of new leadership at the Hawks, an agency whose demise was intended.
In addition, a new National Director of Public Prosecutions was selected based on the advice of an independent panel after a transparent public procedure.
“That is why even as the State Capture Commission was being appointed in 2018, this government was taking decisive steps to end state capture and rebuild our institutions.
“As a result of these efforts, several major state capture and other serious corruption cases have been brought to court,” the President said.
Since the beginning of the Commission’s work, considerable resources have been made available to develop and rebuild law enforcement agencies’ capacity and competence to react effectively to the Commission’s findings and recommendations.
“As a result of this work, the Investigating Directorate that we established within the National Prosecuting Authority has to date enrolled 26 cases, declared 89 investigations and 165 accused persons have appeared in court for alleged state capture-related offences.
To present, law enforcement agencies have received freezing or preservation orders totaling R12.9 billion. In addition, R2.9 billion have been recovered and returned to impacted firms, while SARS has collected R4.8 billion in unpaid taxes as a result of the Commission’s efforts.
In addition to proposing sanctions against state capture offenders, the Commission issued 95 recommendations requiring constitutional, legislative, regulatory, or operational reforms.
To address some of the abuses by private companies, the President announced that the laws under review will be amended to, among other things, criminalise donations to political parties in exchange for state contracts, bar suppliers who have engaged in dishonest or corrupt behaviour, and make it a crime to fail to prevent bribery.
The Commission examined claims of numerous criminal actions and misuse of public resources at the State Security Agency (SSA).
“The Commission found that weaknesses in our intelligence services’ regulatory framework made them particularly vulnerable to abuse for political and personal gain.
“We will implement all of the Commission’s extensive recommendations on the intelligence services, together with the recommendations of the High-Level Review Panel on the SSA chaired by Dr Sydney Mufamadi.”
A new General Intelligence Laws Amendment Bill would create distinct domestic and foreign intelligence services, enhancing supervision of intelligence agencies and giving implementation to the idea that no member of the Executive responsible for intelligence may be engaged with SSA operational issues.
In order to strengthen the NPA’s independence, legislation will be altered to provide more openness and consultation in the selection of the national director of prosecutions.
To significantly bolster anti-corruption powers, the NPA will create the Investigating Directorate as a permanent organisation.
President Ramaphosa indicated that the Public Procurement Bill would be introduced to parliament by March 2023 and will address a significant number of the Commission’s recommendations.
Regarding the formation of an independent Public Procurement Anti-Corruption Agency, the Commission has provided specific suggestions.
In addition, the report suggested the formation of a permanent anti-corruption commission with supervision of both Parliament and the Executive.
“The Commission’s recommendations underline the need for a coherent and integrated approach to combating corruption, fraud and maladministration. It is therefore appropriate that these recommendations form part of a fundamental redesign and review of the country’s anti-corruption architecture.”
The President said that independent committees with the necessary technical skills would propose State-owned entity (SOE) board nominees. No SOE board member will be permitted to participate in procurement operations beyond an oversight capacity.
In light of the Commission’s conclusion that the appointment and removal of board members and top executives in state-owned businesses was one of the primary sources of state capture, this is the case.
“The lack of compliance, transparency and accountability in the appointment of board members not only enabled the capture of these companies, but also contributed to a decline in their operational and financial performance.
“That is why government accepts the Commission’s recommendations on the need for a process for the appointment of boards of state-owned enterprises that is not open to manipulation.
“This would include the involvement of independent panels with appropriate technical expertise to recommend suitable candidates to the relevant Minister,” the President said.
Ministers would be forbidden from participating in procurement inside state-owned firms or government ministries, he added.
The Commission’s six-part report was presented to the President over the course of six months: the first part was submitted on January 4, 2022, and the sixth and final part was submitted on June 22, 2022.
The 77-page response to the recommendations can be accessed on: https://www.stateofthenation.gov.za/assets/downloads/State%20Capture%20Commission%20Response.pdf