LOOTING BACKLASH
MAGDA WIERZYCKA: Law is coming for you, corrupt directors
‘Governments come and go, as do the culture and business practices they endorse — and the protection they purport to offer’
Every morning, we wake up to news reports about corruption, misuse of public funds, illegal procurement processes and mismanagement of state-owned enterprises (SOEs). Sadly, most illegal acts by SOEs have private-sector counterparties — companies that pay bribes to state employees, inflate their prices to pay off "middlemen", participate in clearly rigged tender processes, or do double-sided deals (a certain coal mine for cheap oil comes to mind). It is indisputable that the level of corruption in SA has reached a record high. It is a national pastime and a standard way of doing business. The costs are astronomical and mounting: credit rating downgrades, international companies disinvesting, a volatile currency and the failure of SOEs to deliver profits to its shareholders — the government and taxpayers. The government’s inability to raise adequate funding and the higher interest that applies to the funds they do manage to secure takes money away from projects such as education, hea...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.