- SIU in South Africa unveiled staggering scale of corruption
- A total of over $7 billion has been squandered
- Experts say the funds cannot be recovered easily
The Special Investigative Unit (SIU) in South Africa has unveiled the staggering scale of corruption within the country’s state-owned enterprises (SOEs).
According to a report released on Tuesday, active investigations into alleged corruption at these companies involve a total of over $7 billion.
The SIU’s probe, which has been ongoing since 2018, focuses on six major SOEs: Transnet, Denel, Eskom, the National Lotteries Commission, South African Airways, and PRASA.
The investigations encompass a wide range of alleged corrupt activities, including suspicious contracts, conflict of interest, and bribery.
Transnet and Eskom: Major Targets
Among the most significant investigations is the one targeting Transnet, South Africa’s ports and rail company.
The SIU has identified over 60 suspicious contracts and hundreds of cases of corruption, totaling nearly $4 billion.
Eskom, the country’s power utility, is also under intense scrutiny. The SIU has uncovered over 270 contracts worth around $2.2 billion that are suspected of corruption.
These investigations have been ongoing for several years and have contributed to the severe electricity shortages that plagued South Africa in recent times.
PRASA’s Ghost Employee Scandal
Another notable case involves PRASA, the passenger rail company. The SIU has uncovered evidence of a ghost employee scheme, where millions of dollars were allegedly stolen through payments to fictitious employees.
The total amount lost to corruption at PRASA is estimated to be around $540 million.
Legacy of Corruption
The SIU’s report sheds light on the deep-rooted corruption that plagued South Africa during the administration of former President Jacob Zuma.
The allegations of widespread graft and mismanagement have had devastating consequences for the country’s economy and infrastructure.
While President Cyril Ramaphosa has vowed to address the corruption problem, experts warn that recovering the stolen funds will be a significant challenge.
The SIU’s investigations offer a glimpse into the extent of the damage caused by corruption and the urgent need for reforms to prevent such scandals from happening again.
