The government has established a database of corrupt businesses that departments are banned from using, while a plan for the blacklisting of corrupt employees from the public service has been approved.
While the blacklisted companies are published on the Treasury website, legal issues around banning corrupt employees still have to be resolved, according to a government progress report on its anti-corruption measures.
Parliament’s public service and administration committee was briefed this week by the National Anti-Corruption Forum, a joint body of government, business and civil society formed in June 2001.
The briefing came ahead of next week’s official release of the national corruption survey. However, Minister of Public Services and Administration Geraldine Fraser-Moleketi already hinted during February’s parliamentary briefings that the reality and perception of doing business in South Africa often did not match.
While 62% of businesses thought bribes had become an acceptable business practice, only 11% actually paid a bribe, she said.
Other anti-corruption steps include: corruption hotlines for eight government departments; specialised commercial crime courts and legislation such as the Financial Intelligence Centre Act and whistle-blowing laws.
But compliance with various public service anti-corruption measures must be improved: 27% of managers had not submitted their financial disclosure forms by the end of January. Under this code public servants of the rank of director upwards have to disclose gifts above R350.
However, it appears some initiatives against corruption are struggling to get off the ground. Despite the 11 King committee reports on corporate governance there has been a failure to share fraud data and to acknowledge the extent of fraud and corruption.
In addition, “the practice of hiding fraud problems in bad debt provisions for fear of shareholder backlash” has been an impediment, the committee heard from the forum’s business representative, Michael Denega.