Development Corruption in South Africa: Governance Matters

222 Pages·2014·2.272 MB·English

by  Soma Pillay (auth.)

Development Corruption in South Africa
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Development Corruption in

South Africa
Governance Matters
Soma Pillay
development corruption in south africa
Copyright © Soma Pillay, 2014.
Softcover reprint of the hardcover 1st edition 2014978-1-137-38695-3
All rights reserved.
First published in 2014 by
PALGRAVE MACMILLAN®
in the United States— a division of St. Martin’s Press LLC,
175 Fifth Avenue, New York, NY 10010.
Where this book is distributed in the UK, Europe and the rest of the world,
this is by Palgrave Macmillan, a division of Macmillan Publishers Limited,
registered in England, company number 785998, of Houndmills,
Basingstoke, Hampshire RG21 6XS.
Palgrave Macmillan is the global academic imprint of the above companies
and has companies and representatives throughout the world.
Palgrave® and Macmillan® are registered trademarks in the United States,
the United Kingdom, Europe and other countries.
ISBN978-1-349-48177-4 ISBN978-1-137-38350-1 (ebook)
DOI 10.1057/9781137383501
Library of Congress Cataloging-in-Publication Data
P i ll a y, Soma, 1967–
Development corruption in South Africa : governance matters / by
S o ma Pillay.
pages cm
Includes bibliographical references and index.

1. Political corruption—South Africa. 2. Civil service reform—South
Africa. 3. South Africa—Officials and employees—Professional ethics.
4. South Africa—Politics and government—21st century. I. Title.
JQ1929.C6P55 2014
364.13230968—dc23 2014025176
A catalogue record of the book is available from the British Library.
Design by Newgen Knowledge Works (P) Ltd., Chennai, India.
First edition: December 2014
10 9 8 7 6 5 4 3 2 1
Contents

List of Figures, Tables, and Boxes vii
1 Governance Matters in South Africa 1
2 A Topography of Corruption 11
3 Legislative Measures and Institutional Structures 51
4 An Institutional Theory Perspective on Corruption:
The Case of a Developing Democracy 77
5 Systemic Factors Moderating Whistle-Blowing 105
6 Exploring Whistle-Blowing Intentions in South Africa 129
7 Linking Cultural Dimensions with the Nature of Corruption 163
8 A Cultural Ecology of New Public Management 185
9 Conclusion 215
Index 219
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Figures, Tables, and Boxes

Figures
2.1 The Anatomy of a Bribe 31
2.2 Establishing an Ethical Workplace 45
3.1 Accountability, Decentralization, and Rights 53
4.1 Luo’s Institutional Perspective of Corruption 85
4.2 A Modified Institutional Perspective of Corruption 85
5.1 Institutional Context and Task Context Factors 112
5.2 Whistle-Blowing as a Culture-Contingent Process 123
Tables
1.1 Establishing an Ethical Workplace 4
4.1 Geographical Location of Respondents 93
4.2 Employment Category 93
4.3 Employment Categories by Province 93
4.4 Types of Corrupt Behavior 94
4.5 Level of Corruption under the Current Government 94
4.6 Task Environment 95
4.7 Need for Educational Programs 96
4.8 Institutional Environment 97
4.9 Reasons for Reluctance of Public Servant Whistle-Blowers 98
4.10 Deterrent Outcomes 98
5.1 Reasons for Reluctance to Blow the Whistle 119
6.1 Group B Means and Standard Deviations 141
6.2 Group C Means and Standard Deviations 142
6.3 Group D Means and Standard Deviations 144
6.4 Group E Means and Standard Deviations 144
6.5 Group B and Group E Correlations 145
viii Contents
6.6 Differences between Senior-Level and Middle-Level
Management 146
6.7 Proposition Results 148
6.8 I Would Not Be a Whistle-Blower 150
Insight Boxes
2.1 New DA Handbook to Cut Corruption 18
2.2 Power and Gifts 20
2.3 White-Collar Crime 33
3.1 Objectives of SANPS 57
3.2 Key Performance Areas of the PSC 63
3.3 The Functions of the South African Police Service
Anti-Corruption Unit 66
4.1 White-Collar Crime 78
5.1 Cool Drink Money 109
5.2 Corruption in the Public Service 109
5.3 South Africa’s Whistle-Blowing Framework 117
8.1 Does White-Collar Crime Include Embezzlement? 192
8.2 Father of Ethics 200
Reflective Box
2.1 What Is Nepotism? 31
2.2 So What Do Ethics Mean to You? 43
3.1 Financial Disclosure 64
4.1 The Ancient Greeks 80
5.1 What Are Some of the Features of Poor Governance? 110
6.1 Characteristics Affecting Professionalism 131
6.2 Do the Following Create a Capacity for
Sustainable Governance? 132
6.3 Initiatives of the Public Service 133
7.1 Consequences of Corrupt Activities 171
7.2 What Would Some of the Features of Unethical
Conduct Include? 173
8.1 True or False? 191
8.2 Features of Governance 201
Chapter 1

Governance Matters in South Africa
Introduction

Corruption is a near-universal phenomenon that takes many shapes and
forms. As South Africa moves toward recognizing the devastating effects
of corruption, the population there too realizes its enormous impact on the
economic, social, and political scenario. On the economic front, corruption
misdirects resources and discourages investment by the private sector.
Corruption also has significant social costs—it creates a culture of pov-
erty and crime and deprives the neediest elements of society from availing
themselves the benefits of government resources.
The political costs of corruption can be ruinous. Vibrant democratic
institutions depend upon the consent and support of the governed. Public
confidence is necessary for democratic institutions to remain healthy and
flourish. Corruption destroys the confidence of people in their govern-
ment and undermines the very legitimacy of political institutions. In its
most pervasive and entrenched forms, corruption can be a source of politi-
cal instability.
The great French novelist Victor Hugo once wrote that “greater than
the tread of mighty armies is an idea whose time has come” (quoted in Pott,
1998:1). Over the years, there are increasing signs that ethics in the public
services is an idea whose time has come. We now stand at a point where the
environmental movement stood some 30 years ago—on the threshold of a
heightened public awareness. In this case, the new awareness is that ethics
in the South African Public Service is crucial to the success of the country’s
democratic institutions. This awareness has taken root particularly in the
past two decades in South Africa.
S. Pillay, Development Corruption in South Africa
© Soma Pillay 2014