Ministers fingered as some of the enablers of state capture

Published Jun 13, 2019

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Johannesburg - Cabinet ministers have been identified as some of the enablers of malfeasance, corruption and fraud in public institutions at the commission of inquiry into state capture.

Evidence leader Kate Hofmeyr told commission chairperson Deputy Chief Justice Raymond Zondo that public enterprises ministers kept board members who were flouting rules.

"Ministers who sit in the department of public enterprises retain members of boards in their positions despite sustained evidence that they are not complying with their fiduciary duties and do not act swiftly enough to ensure proper governance,” Hofmeyr said.

She said ministries also receive reports from whistleblowers but do not act.

As a result, civil society organisations have to step in but have limited funds and are not available to everyone at all times.

Hofmeyr was detailing what she described as the five facilitators and enablers of state capture, corruption and fraud in public institutions.

"Priority crimes investigations stall for unthinkably long periods and are not brought to resolution,” she said.

According to Hofmeyr, the Hawks took two years to get bank statements from a single bank in relation to one company.

"That just does not stack up as the product of diligent investigative and prosecutorial work. That is an enabler because it results in a situation where perpetrators not being brought to justice in any reasonable stretch of time,” she explained.

Hofmeyr also identified companies who allow their businesses to be used to hide the proceeds of unlawful activities as enablers of state capture by facilitating theft from the public purse.

She said funding institutions are not rigorous enough in their funding decisions which lead to them giving money when they are not supposed to.

Political Bureau

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