COSATU statement on corruption allegations

03 - 04 - 06

 

COSATU statement on corruption allegations

The Congress of South African Trade Unions is dismayed at the large and growing number of allegations in the media about people in public office who either hold stakes in private companies, or receive money from business organisations.

COSATU has already expressed concern at allegations that 14 government ministers failed to declare directorships in private companies and closed corporations. Auditor General Shauket Fakie now claims to have uncovered evidence that 1678 MECs and designated public employees and 50223 non-designated public employees were directors or members of companies and close corporations between April 2003 and September 2004, and that most of them had not declared these interests. 25634 of the 50223 'non-designated' government employees are in the education sector and 8705 in health.

He adds that "a number of entities in which government employees were directors or members had had transactions with government".

COSATU is also concerned at the reaction to these allegations from the Chairperson of Parliament's portfolio committee, which was to 'shoot the messenger' rather then promise a thorough investigation.

Now there is an allegation in the City Press that Linda Mti, Commissioner of the Department of Correctional Services (DCS), has benefited, as a director of an investment consultancy, from tenders issued by the department. There is also an allegation in the Sunday Times that Cape Judge President John Hlophe made a decision in favour of a company that was paying him a retainer of several thousands of rands a month.

All this follows allegations in the Sunday Times that the late mining boss, Brett Kebble, handed over huge amounts of shareholders' money to leading figure in the liberation struggle. According to the Sunday Times. "ANC heavyweights and businessmen who also benefited from Kebble included:

* Mac Maharaj, former Transport Minister (R280000);

* Popo Molefe, former North West premier (R768000);

* Former ANC chief whip Tony Yengeni (R1.4-million);

* Dali Tambo (R11.096-million)

* Sello Rasethaba, director of Matodzi (R9.667-million);

* Eric Molefe, former chairman of black-owned oil company Exel Petroleum (R431000);

* Chris Nissen, former Western Cape ANC leader (R370000);

* David Barritt, Kebble's former spokesman (R10.295-million);

* Sharif Pandor, husband of Education Minister Naledi Pandor (R979966);

* Dominic Ntsele, a Kebble business associate (R2-million);

* Lunga Ncwana, a prominent ANC Youth League member (R7.060-million); and

* Andile Nkuhlu, a Youth League leader and former JCI executive (R333000)."

We expect that all these claims will be fully investigated and demand that any people found guilty of unlawful activities be dismissed, prosecuted and punished severely.

But there is enough evidence already to confirm COSATU's belief that we have a massive crisis in our public service. It is getting to the stage when rather than investigate which public office bearers have a conflict of interest through their involvement with or in private companies, it will be easier to investigate the few who do not! We also have to ask to what extent the ANC's own leadership is implicated. The question that arises is: how many of the ANC leaders do not have any business interests, directly, or through their spouses? It is no longer who has, but who does not have!

This is a dangerous cancer eating into the body of our democracy. More and more leaders, many of whom were part of the national liberation movement, have completely abandoned that movement's traditions of sacrifice and service to the people. The ANC, which has always had a bias in favour of the working class and the poor, is in danger of being turned into a gravy train for a new elite to climb on to. Far too many ANC leaders, and officials appointed by the ANC government, appear to have succumbed to the temptation to join the race to make as much money as possible as quickly as possible.

We have already identified the 'javelin syndrome', where civil servants create favourable conditions for a particular business to profit - for example the privatisation of Telkom - and then leave the public service to join that very company, just like a javelin thrower who runs to catch the spear he himself has thrown.

COSATU General Secretary Zwelinzima Vavi identified this problem when he told the SACCAWU 8th National Congress in 2004 that "signs that corruption, consumerism and crass materialism are fast becoming the biggest challenge facing the movement are there for all to see. The idealism that inspired the demands of the Freedom Charter is in danger of being eroded and replaced by the new culture based on mentality that asks only, 'what is in it for me alone', and not what we can gain for our people."

Earlier in 2004 he reminded delegates to the SACTWU Congress of the liberation movement's culture of solidarity, selflessness and putting our people first. "I am talking about the traditions of understanding that our individual concerns and sacrifices come second to the concerns of the masses of the people. I talk here about the deep culture of service to our people even at the expense of individual suffering."

In the light of the latest allegations these remarks have become more relevant than ever. COSATU is demanding emergency measures to root our corruption and the abuse of power in the public service.

The greatest danger of all is that the ANC and government leadership will become so entangled with big business that the ANC will lose its bias in favour of the working class and the poor, and become the servant of the companies the leaders are benefiting from. It will lead to government adopting more and more pro-business policies. It will further entrench and consolidate the capitalist class, paving the way for its total domination of society at the expense of the workers and the poor.

The ANC's 2004 election manifesto said that "systems have been put in place to expose and punish corruption both in government and in the private sector". This year's local government manifesto said: "By fighting corruption and arrogance among some who work in government, the ANC is determined to respect the people's mandate". President Thabo Mbeki' has called on those who joined the ANC for material gains, instead of serving our people, to leave the movement.

It is time to see these words translated into action. We must revive the fine traditions of the liberation movement and make sure that we serve the people, not ourselves. We call upon all our leaders to choose between serving our people or being business men and women. There is an inherent contradiction in serving the people during the day and exploiting them by night