Fight against state capture and corruption is gaining momentum, Ramaphosa says

President Cyril Ramaphosa says the fight against corruption and state capture is gaining momentum.

This comes after the National Prosecuting Authority (NPA) announced last week it had reached a settlement agreement with an international company implicated in corruption at Eskom, saying it was a “huge development in the efforts to hold those responsible for state capture to account”.

“Now that we see progress, we must do everything we can to ensure this work continues unhindered and none of the gains we have made are reversed,” Ramaphosa said in his weekly newsletter.

The NPA’s Investigating Directorate finalised a landmark agreement with Swiss engineering company ABB to pay R2.5bn in punitive reparations to SA. This is in connection with bribes allegedly paid to obtain contracts with Eskom between 2014 and 2017.

The amount will be paid into the Criminal Assets Recovery Account in addition to R1.6bn ABB paid Eskom in 2020 to settle an investigation into alleged criminal conduct involving contracts at Kusile power station.

Ramaphosa said the settlement does not indemnify the company or its staff from prosecution.

“For the past five years we have been working hard to end the looting of resources meant for the benefit of SA’s people, to prosecute those responsible and recover stolen funds.”

Ramaphosa said when embarking on the journey, it was understood results would not be felt overnight.

“We first had to rebuild state institutions that had been deliberately weakened, emptied of expertise and rendered incapable of preventing capture by criminal elements. We had to strengthen law enforcement institutions and shield them from outside interference,” he said.

The president applauded the decision to establish the Investigating Directorate within the NPA for cases emanating from the state capture inquiry and other corruption-related offences, saying there is a plan to make the directorate a permanent structure because the results of its work are evident.

“In the past few months, several cases have been brought to court, with former executives of state-owned enterprises (SOEs) such as Eskom and Transnet charged alongside business people for allegedly colluding to steal public funds. In addition to the arrests of those implicated in wrongdoing and bringing the cases to court, progress is being made in other areas where there has been malfeasance. For example, work is continuing at Eskom to recover money from irregular and corrupt contracts, recover overpayments and bill contractors for project over-runs,” said Ramaphosa.

He said the Special Investigating Unit is continuing with its investigations into corruption and mismanagement at state institutions and SOEs with its Special Tribunal empowered to recover stolen funds.

“The SA Revenue Service continues to fight corruption through lifestyle audits and other legislative tools. It is piloting a new unexplained wealth initiative to recover assets suspected of having been acquired illegally or through the proceeds of crime. The NPA, through the Investigating Directorate, the Asset Forfeiture Unit and other structures, is successfully using preservation orders, asset forfeiture and other tools to tighten the noose around those involved in corrupt activities,” the president said.

Ramaphosa said law enforcement authorities and the NPA are proving their dedication to investigating and prosecuting without fear or favour.

“Many of those involved in state capture and their enablers saw nothing wrong with diverting public funds to private pockets. At the height of the state capture era, unscrupulous politicians repurposed state institutions for private enrichment and to cover their tracks. We have state institutions committed to fulfilling their mandates regardless of the status or influence of any individual or company.

“As a society, we need to give these agencies and the people working in them our full support and encouragement. We need to guard against any efforts to weaken these institutions or undermine their resolve.” 

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