understanding political corruption in post-apartheid south africa

457 Pages·2005·3.66 MB·English

UNDERSTANDING POLITICAL CORRUPTION IN POST-APARTHEID
SOUTH AFRICA: THE GAUTENG EXPERIENCE
(1994-2004)

GASTON KALOMBO

A thesis submitted to the Faculty of Humanities, University of the Witwatersrand,
Johannesburg, in fulfillment of the requirements for the degree of Doctor of
Philosophy.

Johannesburg, October 2005
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DECLARATION

I, the undersigned, hereby declare that this is my own original work, and that all fieldwork
was undertaken by me. No part of this thesis has been submitted in the past, or is being
submitted, or is to be submitted for a degree at any other university.

Gaston Kalombo
University of the Witwatersrand
Johannesburg

G. Kalombo Date
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DEDICATION

I dedicate this study to my lovely wife Catherine for standing by me during trying times. She
invested resources, time and energy so that our children could have a good education. She has
been for us a constant pillar of strength and encouragement throughout the preparation of this
work.
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ACKNOWLEDGEMENTS

I am indebted to the many people who have at various levels, contributed to the completion of this
work. I cannot acknowledge all of their contributions individually. However, I would like to
thank, wholeheartedly, Professor Tom Lodge, my supervisor. From the inception of the study up
to its final version, he has, persistently, made invaluable critics and constructive remarks. Without
his help this research could not have been possible.

I am also grateful to the University of the Witwatersrand and in particular to the Department of
Political Studies for partially supporting my research. Besides financial support, the Department
provided me with a hospitable environment in form of space and modern facilities at the Graduate
School of Humanities and Social Sciences where it was possible for me to pursue interdisciplinary
research. Special thanks to Diana Sanderson for her attention in ensuring the upgrading of these
facilities, as well as to all the staff at the “Grad’ School”, as we affectionately call it.

A special word of thanks to the many individuals, friends and organisations who have contributed
and who were instrumental in the development of this project.
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ABSTRACT

The objective of this study was to unveil the effectiveness of current strategies put in place to
thwart the root causes of corruption and its damaging effects on economic growth and political
development in the Gauteng Provincial Government. To achieve this purpose, this thesis looked at
the incidence of political corruption in South Africa in general and Gauteng in particular, in an
attempt to ascertain the implication of the political and historical legacy of corruption on
democratic governance. This work is an attempt to raise awareness and understanding of the
problem of corruption, more a step toward transparency and accountability. The research project is
positioned within the qualitative paradigm at the preliminary stage to establish a historical
background of political corruption. And within the quantitative research at the second stage that
required establishing from the preliminary research a sizeable sample of (approximately 100) key
individuals and people in the field of corruption to which detailed questionnaires were distributed.

The main findings as shown from the Gauteng experience were that in Gauteng, cases of
corruption were widespread in almost all departments where public servants exploited state
structures and used them to extract benefits for their own gains. However, the departments the
most vulnerable to corrupt practices were those of Housing, Safety and Security, Transport and
Public Works, Education, Welfare, Local Government and Health. As discovered, areas such as
affirmative action, tendering or the expanded provision of benefits (e.g. in Housing, Welfare or
Education) are areas that are vulnerable to corruption and are all associated with
transformation/democratization projects. However, the incidence of corruption in the province can
be explained by Gauteng’s lack of a “traditional” culture base that may make leaders especially
susceptible to acquisitive and individualistic forms of behaviour.

As a result corruption impacts negatively on the political process by undermining the legitimacy
of the state and economically by impeding developmental strategies, as “corruption leads to loss of
much needed revenue and human talent for development, distorts priorities for public policy, and
shifts scarce resources away from the public interest … Political instability, corruption, and
underdevelopment are mutually reinforcing” (Elliot: 2001:926).
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In terms of anti-corruption measures, the study has found that Gauteng is on the right path, as anti-
corruption measures applied in the province suit those applied at the national level, that in turn are
in the same line with international practices. The study argues that while Gauteng anti-corruption
measures have succeeded in reducing corruption levels, they have not stopped it, as new cases
surface almost every week in the local press. Thus there is still room for improvement if the
Gauteng government aims to succeed.

The researcher has recommended that there is a need for common guidelines and coordination
strategies amongst internal departmental anti-corruption units that have been established and the
initiation in each department of its own monitoring and evaluation capacity. This means the build-
up and the improvement of internal audits and controls by higher authority applicable to both
officialdom and the business sector. Finally the study assumes that many other examples of
strategies to fight corruption could be provided, however, the ones provided are sufficient to argue
the point that in many cases the fight against corruption cannot proceed independently from the
reform of the state. In many ways it is the same fight.

The study’s major conclusions concern those general assumptions about the relationship between
democracy and good governance, which characterize certain theories concerning the causation of
corruption, need to be revised. Even the most authoritarian systems, as was apartheid, were able
to control the levels of corruption and keep it at an economically viable level. To this end, other
mechanisms such as accounting standards and audits and direct accountability of leadership in
government need to be strengthened alongside with the protection of whistleblowers. But the end
result is that several factors associated with these mechanisms have highlighted the fact that
transparency and the resulting exposure have increased opportunities for graft. In more democratic
and open societies, besides greater civic engagement, the chance of closer monitoring and
exposure of corrupt officials and politicians is higher than in no democratic society. Freedom of
the press and of association leads public interest groups to expose abuses of power. While
democracy seems to decrease corruption, both variables interact strongly with the level of
transition. Hence the needs for more research on the actual effect of democratization in
government departments that will serve the cause of anti-corruption campaign better.
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TABLE OF CONTENTS

PAGES

DECLARATION ………………………………………………………………………………....ii
DEDICATION ………………………………………………………………………………… iii
ACKNOWLEDGEMENTS ………………………………………………………………………iv
ABSTRACT …………………………………………………………………………………….. v
TABLE OF CONTENTS ………………………………………………………………………...vii
LIST OF TABLES AND FIGURES ……………………………………………………………xiii
LIST OF ABBREVIATIONS …………………………………………………………... xv

Foreword …………………………………………………………………………………………xix

PART ONE:
CONCEPTUAL AND PRACTICAL CONSIDERATIONS OF CORRUPTION .........….…2

CHAPTER ONE: CONTEXTUALIZING THE CONCEPT……………………………….. 3

1.1 INTRODUCTION…………………………………………………………..………………. ……………3
1.2 THESIS OBJECTIVES………… ……………………………………………………………….. 3
1.3 FOCUS OF THE STUDY………….……………………………………………………………………... 4
1.4 THE CHOICE OF THE STUDY.…………………………………………………………………………… 6
1.5 STRUCTURE OF THE THESIS………………………………………………………………………….. 16

CHAPTER TWO: METHODS, SOURCES AND MEASURE OF CORRUPTION ……...21

2.1 INTRODUCTION.………........ …………………………………………………………………… 21
2.2 SOURCE AND DATA... .………………. ……………………………………………………….. 22
2.3 SIGNIFICANCE OF CORRUPTION INDICES ............. ………………………………………………......... 26
2.4 PERCEPTIONS OF CORRUPTION ………………………………………………………………... 27
2.5 THE CORRUPTION PERCEPTIONS INDEX (CPI). ....... …………………………………………….34
2.6 THE BRIBE PAYERS INDEX (BPI) ....... …………………………………………………………... 37
2.7 LIMITATIONS OF THE STUDY ......... …………..…………………………………………………. 41
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CHAPTER THREE: UNDERSTANDING POLITICAL CORRUPTION…………………44

3.1 INTRODUCTION …….…………………………………………………………………………….. 44
3.2 THE QUEST FOR DEFINITION .………. ………………………………………………………… 45
3.3 WORKING DEFINITIONS ………………………………………………………………………..… 46
3.4 FORMS OF CORRUPTION ………………………………………………………………………….. 52
3.5 POLITICAL VERSUS BUREAUCRATIC CORRUPTION . …………….……………….…………………. 54
3.6 PUBLIC OFFICE VERSUS PRIVATE DOMAIN .… ……....……………………..……….……………….… 57
3.7 DEVIATIONISM …………………………………………………………………….………………….. 61
3.8 EXPANSION OF CORRUPTION ……………………………………………………..........................62

CHAPTER FOUR: CORRUPTION KEY FACTORS ……………………..………………... 67

4.1 INTRODUCTION ………………………………………………………………………………………...67
4.2 THE CAUSAL MODEL………………………… ……………………………………………………….. 68
4.3 KEY FACTORS PROMOTING CORRUPTION……………………………………………………………….. 73
4.4 THE SOUTH AFRICAN PERSPECTIVE ……………………………………………………………………...78
4.5 THE AFRICAN PATRIMONIALIST APPROACH …………………………………………………………….. 82
4.6 THE INTERNATIONAL DIMEMSION ……………………………………………………….........................94
4.7 THE ROLE OF THE WORLD BANK ………………………………………………………………... ………97

CHAPTER FIVE: THE EFFECTS OF CORRUPTION...……………………………………100

5.1 INTRODUCTION…..………………………………………………………………………….......100
5.2 THE COST OF CORRUPTION IN SOUTH AFRICA……………………………………………………101
5.3 LESSONS FROM OTHER AFRICAN COUNTRIES……………………………………………………103
5.4 POSITIVE VERSUS NEGATIVE EFFECTS OF CORRUPTION ………………………………………..109

CHAPTER SIX: SOUTH AFRICA: THE POLITICAL LEGACY ………………………...114

6.1 INTRODUCTION ……..….. ………………………………………………………………………. 114
6.2 THE CULTURE OF CORRUPTION ………………………………………………………………………. 115
6.3 TYPOLOGY OF CORRUPTION IN SOUTH AFRICA ………………..……………………………………… 119
6.3.1 BEFORE 1994 ……………………………………………………………………………………….. 120
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6.3.1.1 STATE DEPARTMENTS ……………………………………………............................................ 120
6.3.1.2 HOMELAND ADMINISTRATIONS..…………………………………………………………………. 123
6.3.2 INCIDENCE IN POST-1994 SOUTH AFRICA……………………………………………………… 124
6.3.2.1 The Department of Welfare and Population Development ……………………………127
6.3.2.2 The Department of Home Affairs ……………………………………………………128
6.3.2.3 The Department of Correctional services ……………………………………………133
6.3.2.4 The Department of Defence …………………………………………………………….. 137
6.3.2.4.1 The Arms Deal……………………………………………………………………….... 137
6.3.2.4.2 The Yengeni Scandal …………………………………………………………………..141
6.4 CHAPTER SYNOPSIS ……..………………………………………………………………........... 147
6.5 CONCLUDING REMARKS .……………………………………………………………………. 151

PART TWO: EMPIRICAL ANALYSIS OF THE GAUTENG CASE...………………….. 154

CHAPTER SEVEN: RESEARCH DESIGN………………………………………………….155

7.1 INTRODUCTION ……. ………………………………………………………………………………155
7.2 OBJECTIVE OF THE SURVEY……………………………………………………………………………..155
7.3 ORGANISATION OF THE SURVEY ……………………………………………………………………... 156
7.4 RESPONSE RATES ………. …………………………….………………………………………………...157
7.5 PRESENTATION OF THE RESULTS ….………….…………………………………………………………160
7.6 KEY FINDINGS ………………………………………………………….………………………………..170
7.7 RELIABILITY OF THE RESULTS ………………………………………………………………………..…173

PART THREE:
DETERMINANTS AND OUTCOMES OF CORRUPTION IN GAUTENG…………………174

CHAPTER EIGHT: EXPLAINING CAUSALITY: THE INTERPLAY OF THE THREE
CLUSTERS OF CORRUPTION ……………………………………………………………… 175

8.1 INTRODUCTION ….……………………………………………………………………. … …..175
8.2 THE INTERPLAY OF THE CLUSTERS …………………………………………………………….176
8.3 THE ROLE OF THE STATE IN THE ECONOMY ……………………………………………………...177
8.3.1 Regulations and Authorizations ………. ………………………………………………….178
8.3.2 Recruitment and Affirmative Action ……………………………………………………..182
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8.3.3 Tax and Procurement Regulations ……………………………………………………….. 195
8.3.3.1 Procurement administration in Gauteng ………………………………………………….. 197
8.3.3.1.1 Objectives ………………………………………………………………………. 197
8.3.3.1.2 Tender procedures ………………………………………………………… ………198
8.3.3.1.3 Lack of Transparency ……………………………………………………………. 202
8.4 INSTITUTIONS OF DEMOCRACY OR ACCOUNTABILITY . ………………………………… 209
8.4.1 Internal Control Mechanisms …. …………………………………………………… 210
8.4.2 Penalty Statutory …… ………………………………………………………………. 217
8.4.3 The Quality of Bureaucracy or Institutional Capacity ….. …………………………. 220
8.4.4 The Gauteng Bureaucracy …………………………………………………………………. 222
8.4.4.1 The Office of the Premier ………………………………………………………... 223
8.4.4.2 The Department of Education …. …………………………………………………. 225
8.4.4.3 The Department of Health …. ……………………………………………………. 233
8.4.4.4 The Department of Safety and Security .….. ……………………………………… 237
8.4.4.5 The Department of Transport ….…………………………………………………. 246
8.4.4.6 The Department of Local Government … ………………………………………. 251
8.4.4.7 The Department of Housing ……………………………………………………… 255
8.5 SOCIO-CULTURAL DETERMINANTS OF CORRUPTION………… ………………………… 259
8.5.1 Social Dimensions … ………………………………………………………………. 259
8.5.2 Cultural dimensions … ……………………………………………………………... 267
8.5.3 The Human Factor ……………………………………………………………………………279
8.5.4 Concluding Remarks ………………………………………………………………………….283

CHAPTER NINE: COMMISSIONS OF INQUIRY INTO PROVINCIAL CORRUPTION..286

9.1 INTRODUCTION …………………………………………………………………………. 286
9.2 THE MOERANE COMMISSION … ………………………………………………………… 288
9.3 THE HOUSING DEPARTMENT INVESTIGATIONS …………………………………………. 294
9.4 CONCLUDING REMARKS ..………………………………………………………………. 304

CHAPTER TEN: CORRUPTION CONSEQUENCES IN GAUTENG ………………. 308

10.1 INTRODUCTION ………………………………………………………………………. 308