Page 46 - IRMSA Risk Report 2020
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4.3.3
        F AIL URE   T O  R OO T  OUT  DEEPLY  ENTRENCHED  C ORR UPTION

              FACTIONS IN THE RULING PARTY, INADEQUATELY RESOURCED CHAPTER NINE INSTITUTIONS AND SLOW
          REACTION TO FINDINGS FROM STATE COMMISSIONS (STATE CAPTURE ETC.) MAY RESULT IN SA NOT BEING ABLE
            TO BRING FRAUD AND CORRUPTION UNDER CONTROL, WHICH MAY LEAD TO UNSUSTAINABLE BALANCE OF
                            PAYMENTS, NATIONAL BANKRUPTCY AND EVENTUALLY A FAILED STATE.

                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
                                      Economy
               PERPETUAL HANGOVER
                                      Global trends
                                      Climate


           The ANC noted has in its 54th National Conference Report and Resolutions document that corruption is a key challenge
          that threatens its goals to uplift the people of SA. In 2007, SA was one of the least corrupt countries – ranking 43rd out of
                      180 countries. Just over 10 years later, SA’s position has slipped to 73rd out of 180 countries.

               TOP 5 CHALLENGES TO ACHIEVING                      TOP 5 RISK TREATMENT OPTIONS AND
                             TARGETS                                          OPPORTUNITIES
         1.   The  continued  underperformance  of  corruption-fighting  1.   Push officials accused of corrupt practices to immediately account
             entities, such as the NPA, is one of the main obstacles to curbing  to the Integrity Committee.
             corruption.                                     2.   Suspend people who are unable to give an acceptable explanation
         2.  The current leadership structures seem helpless to arrest these  while facing disciplinary Investigative or prosecutorial procedures.
             practices, due to a lack of political will or because they themselves   3.   Prioritising  the  most  vulnerable  sectors. The  vulnerable  sectors
             are implicated.                                     are, in order of priority, as follows:
         3.   Since 2013, the Special Investigating Unit has referred 881 matters   •  Health sector;
             to the NPA, which translated to 293 cases. Yet only nine cases  •  State owned enterprises;
             were finalised in court. This low success rate can be ascribed to:  •  Local government;
             •  Not  having  an  effective  National  Corruption  Prevention  •  Construction;
                Plan/Strategy;                                   •   Finance;
             •  A backlog of corruption cases at the Judiciary; and  •  Energy; and
             •  Not reporting corruption on time.                •   Education.
             •  Lack of skills and lack of resources.        4.   Implement  the  NEC  resolution  on  State  Capture,  including  the
         4.   Key  public  sectors,  such  as  education  and  the  police,  remain  establishment of a Judicial Commission of Enquiry.
             vulnerable to incidences of corruption.         5.   Strengthen  the  State’s  capacity  to  successfully  investigate  and
         5.   A  major  obstacle  to  President  Ramaphosa’s  anti-corruption  prosecute corruption.
             campaign is resistance from factions.


                                                 FAC TS AND FIGURES

         •  More than two thirds of South Africans believe that corruption has increased  from 2010 to 2013;
         •  Nearly half of them would not report corruption because they believe it is pointless;
         •  76.9% of households believe that people are involved in corruption to get rich quickly, followed by greed at 71.2%.
















         Source: Statistics South Africa, Corruption Watch
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