JOHANNESBURG - Business Unity South Africa (BUSA) has committed,
alongside social partners, to engage immediately, comprehensively and
unequivocally in curbing the scourge of corruption that is stifling South Africa’s
economy.
BUSA Vice President Martin
Kingston, said at the 22nd Nedlac Annual Summit under the theme Restoring
integrity by combating corruption through good governance that business needs
to acknowledge that it is often complicit in enabling corruption, benefiting from
corruption and has not been adequately strident and outspoken in dealing with
corruption where it arises in the private sector.
“South Africa cannot afford the
social and economic ramifications of corruption. Corruption undermines our
economic and social potential. Together with government, organised labour, and
community, we must commit to restoring good governance and decisively acting
against corruption”, said Kingston.
Also read: Wits honours South African business leader
Kingston said business
identified key issues that Nedlac needs to find more effective ways to enable
social partners and government to work together and drive economic
transformation for inclusive growth; systematically address regulatory burden
that is stifling the economy; engage comprehensively on energy matters; address
youth employment challenge; and address corruption that is undermining and compromising
our social progress.
“BUSA raised concern with
the state of South Africa’s
state-owned enterprises, especially their governance, sustainability and
financial viability, which are all of significant concern to the business
community. “This is no more starkly represented than the challenges faced
by Eskom, which serves as a proxy for the health of South Africa. As business, we are
extremely concerned that Eskom is at a tipping point. The necessity to ensure
that Eskom is put on a more sustainable path is a national priority that requires
serious consideration and our collective input,” said Kingston.
Tanya Cohen, Chief Executive
Officer of BUSA indicated that BUSA has recently adopted guiding principles to
address corruption and embed integrity within business. In this regard BUSA
members have pledged to adopt the highest ethical standards, levels of
accountability, and good governance principles. Pursue a transparent, zero
tolerance approach with legal and visible consequences for companies and
individuals found to be involved in corruption. Implement processes, controls
and procedures to ensure compliance with anti-corruption legislation, including
creating conducive conditions for whistle-blowers to come forward.
Have you read: BUSA gets new CEO
“In supporting its members
in the implementation of anti-corruption principles, policies and mechanisms,
BUSA is going to add its weight to anti-corruption efforts, raise awareness and
identify management tools that are easily accessible to enable best practice in
governance within business”.
“BUSA points to Nedlac as a
key forum for collaboration in the fight against corruption. Thus, the
recommendation for instituting support mechanisms within Nedlac to build on the
Summit theme of
restoring integrity by combating corruption through good governance,” said Cohen.
Cohen said there was a real
risk of further sovereign ratings downgrades, which would exacerbate the
current pressures on the fiscus and limit South Africa’s ability as a country
to pursue economic and social development. The lack of economic and political
certainty has increased businesses’ levels of caution, as reflected in the
business confidence index.
“Urging all social partners
to rededicate their commitment to address all these challenges, BUSA reaffirmed
its readiness to deal with corruption, whether it occurs in the private sector
or in the public sector,” said Cohen.