Organised business in SA has warned that state capture, which saw state-owned entities (SOEs) rendered dysfunctional to divert public funds for private benefit, remained because the decision-making power of the boards of these entities had been hollowed out by politicians.
According to Business Leadership SA CEO Busi Mavuso, the decision-making power within SOEs did not lie with the boards because decisions were “probably made somewhere between Luthuli house [ANC headquarters] and [government] departments”.
BLSA is an umbrella body representing almost all of SA’s biggest listed companies.
Mavuso, who abruptly resigned as part of the Eskom board in 2022 amid allegations of government interference within the entity, has decried the criticism that BLSA faced when it was disclosed by former Eskom CEO André de Ruyter that the lobby group contributed R18m towards a graft probe at the entity.
“You have the government crying foul, saying what the hell are you doing getting involved?” she said on Tuesday.
Mavuso says the R20m funding that business has provided the National Prosecuting Authority to enable effective prosecution has been criticised, with some accusing BLSA of “propping up a failed government” ahead of the 2024 elections.
“The answer is no, far from it. We have a vested interest as a business community to make sure the country works.”
Mavuso was speaking at the launch of a business-headed anticorruption guide for corporate executives, with the aim of preventing business from being co-opted into state capture.
The anticorruption guide, which has contributions from Revenue Service commissioner Edward Kieswetter, EOH CEO Stephen van Coller and Financial Mail editor Rob Rose, also calls for companies to set up protection funds for whistle-blowers.
Martin Kingston, chair of the Resource Mobilisation Fund (RMF) and Business for SA (B4SA), echoed Mavuso’s sentiments, saying that crime and corruption within the public and private sectors remains but not as “blatantly and it is widespread and we need to deal with it decisively and appropriately”.
The guide lists 38 principles to root out graft including companies adopting an anti-corruption policy, guidelines for ethical lobbying, regular risk assessment and reparations in case companies have been found to have partaken in corruption.
Chief Justice Raymond Zondo, who headed the state capture commission of inquiry, lauded the guide adding the private sector should look into establishing a fund to protect whistle-blowers.
“The private sector should consider setting up a fund. Let us not wait for government; government will do what it will do. But I think that the private sector can easily set up such a fund. And a lot of people who love this country, a lot of people who hate corruption, [will] make a donation,” Zondo said.
“Those who may be tempted to engage in corruption must know... that once they have been found out, there will be serious adverse consequences. The way to make sure that they will be found out is to make sure that whistle-blowers are protected and are given incentives to blow the whistle,” he said.
Sibanye-Stillwater CEO Neal Froneman, who leads the government- and business-established partnership on fighting crime and corruption workstream, said companies found to have benefited from corruption should be made pariahs within the sector.
He said business is “ready to up the ante” on securing prosecutions for corrupt business conduct through provision of forensic reports through the public prosecution unit.
“Companies also need to co-operate fully with authorities on what transpired and which officials were involved. That's the starting point of rebuilding trust.”
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