Corruption on the increase in municipalities and SOEs

A man with a mouth mask written stop corruption
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The latest report by Corruption Watch shows that procurement irregularities have increased significantly in municipalities and state-owned enterprises.

The second edition of the Analysis of Corruption Trends  report indicates that procurement loopholes account for just under 45% compared with 18% in last year’s report. The report found that businesses are increasingly engaging in corrupt behaviour to secure government contracts.

Melusi Ncala is a researcher at Corruption Watch and author of the report.

“These are procurement issues that largely pertain to our report highlighting how businesses are more than willing to pay bribes in the form of kickbacks to officials within municipalities so that they can secure tenders. It’s always a problem when we have businesses that seek to circumvent the laws of the country just to benefit themselves,” says Ncala.

The report shows that corruption at state owned companies increased from 36% to 44%. The report says evidence suggests that the procurement officers who do not follow due process in the appointment of contractors are also not held to account.

Ncala says instances of corruption were reported at Eskom.

“We’ve seen reports, even some coming from within Eskom where we find people are said to be accepting kickbacks. But these kickbacks come in the form of holidays or homes being renovated or other forms of presents that were received only to give a contract to an enterprise that is shady, by and large,” says Ncala.

In the Video below Ncala gives more insight into the report: