Page 44 - IRMSA Risk Report 2020

4.3.2
C ONTINUING PRIV ATE AND PUBLIC GO VERNANCE F AIL URES

DUE TO LACK OF A COMMON PURPOSE AND CONSEQUENCE MANAGEMENT, CONTINUING PRIVATE AND PUBLIC
GOVERNANCE FAILURES MAY RESULT IN REDUCED CREDIBILITY OF PUBLIC, PRIVATE, LABOUR AND CIVIL
ORGANISATIONS; CAPITAL FLIGHT; AND FURTHER ECONOMIC PRESSURE.

SCENARIOS FLAGS RISK RANKING OVER LAST 5 YEARS
Leadership RANKING SCALE
Institutional capacity 10 9 8 7 6 5 4 3 2 1
Politics
SPRING OF HOPE
Social cohesion
National policy

FAKE IT TILL WE MAKE IT...OR NOT? Service delivery ANNUAL RANKING
Inequality 2015 2016 2017 2018 2019 2020
NOT
NOT
Economy RANKED RANKED
PERPETUAL HANGOVER
Global trends
Climate

SA’s future depends on the appointment of competent individuals at all levels of leadership in the public, private, labour
and civil sectors of our country. We should singlemindedly focus on appointing the right people in the right places to
create prosperity for all. Holding individuals, who cause detriment to many millions of ordinary South Africans through
incompetence or criminal intent, accountable is critical if we wish to survive in a country where all can prosper.

TOP 5 CHALLENGES TO ACHIEVING TOP 5 RISK TREATMENT OPTIONS AND
TARGETS OPPORTUNITIES
1. Absence of ethical and effective leadership as espoused by 1. Build an independent bureaucracy that is technically competent;
ICRAFT (Integrity, Competence, Responsibility, Accountability, actively focuses on eliminating corrupt behaviours; and exists
Fairness, Transparency) and good governance as espoused by competently, irrespective of the political powers in place.
King IV. 2. Build a nationally disciplined middle class that forms the
2. Lack of consequences for unethical behaviour and if attempted, backbone of a positive, constructive, and active citizenry focused
interference from the highest levels in the course of dispensing on prosperity that is based on moral and ethical values.
justice by our courts. 3. Significantly strengthen technical competencies in all areas of
3. Not appointing the right leaders in the right positions to deliver public, private, labour, and civil organisations. Include these
the right outcomes in an inclusive manner and with a view to competencies across educational syllabi to embed and entrench
optimising the systemic impact of all we do. it in our national psyche.
4. Not recognising the interdependencies between good 4. Build understanding of good governance principles as a
governance, technical competencies, and sustainable business foundational national value in the development of future leaders.
practices. 5. Strengthen corporate SA’s ability to, through an unwavering
5. Not recognising the collective negative impact on society of approach to law enforcement from all parties involved, root out
individual unethical behaviour or an omission to enforce good corruption and the circumstances that make it possible.
corporate governance.

FAC TS AND FIGURES
• SA’s Ibrahim Index of African Governance (IIAG) transparency and
accountability score has deteriorated every year from 2014 to 2017,
which means that corruption continues to distort the effectiveness
of the public and private sectors;
• SA’s IIAG anti-corruption mechanisms score declined by 26.4
points, one of the most deteriorated countries in 2017;
• SA’s IIAG absence of corruption in the private sector score declined
by 13.7 points;
• 10% of public sector respondents felt that officials in the public
sector were ethical in 2018;
• 42% of public sector respondents disagreed in 2018 that ethical
behaviour was more important than financial success;
• 32% of private sector respondents feel their leaders are ethical
compared to 70% in 2017.
Source: IQ Business, Ibrahim Index of African Governance (IIAG)