Corruption Must Be Eradicated From Its Roots

The only viable long-term solution is to reduce the size and scope of government. By limiting the government's reach, opportunities for corruption can be minimised.

Photo by Camille Brodard on Unsplash

South Africa faces a significant issue with corruption among government officials and entities. The continuous misuse of taxpayer funds by state programs and entities raises the question of how to ultimately combat corruption; the answer lies in liberty.

In South Africa there are numerous state-owned or state-run entities. From Eskom's monopoly to the ongoing discussions about a state bank or public-private partnerships, the state's involvement in economic activities has become normalised, despite the lack of positive outcomes.

The Auditor General (AG) of South Africa releases annual reports detailing the amount of taxpayer funds lost to corruption within the state. These figures amount to billions cumulatively and hundreds of millions yearly. The AG's reports on various state entities have become a regular occurrence, with leaders merely paying lip service to process improvements while substantive changes remain lacking.

Corruption, as outlined by the Auditor General and various other sources, involves the unauthorized use of state funds that cannot be accounted for, or the violation of existing legislation concerning the use or disbursement of state funds. This includes the unethical awarding of tenders through bribery and kickbacks, among other corrupt practices.

South Africa has mechanisms for addressing corruption. From the Public Finance Management Act, which regulates how public funds are spent, to the Prevention and Combating of Corrupt Activities Act, which is meant to create a mechanism to prosecute those who commit corruption. Yet, the problem of widespread corruption in our public sector persists.

While some argue that ethical and trustworthy leaders are the solution to preventing the misuse of state funds for personal gain, the South African public must also embrace a culture of holding public representatives accountable. However, this alone will not address the underlying issue of corruption, as corrupt individuals will not openly declare their intentions during elections.

In addition to the inherent dishonesty of those attracted to politics, the ultimate solution to corruption must be structural. Corruption is a widespread issue, not unique to South Africa. Relying on morally upright leaders is not a sustainable long-term solution.

The only viable long-term solution is to reduce the size and scope of government. By limiting the government's reach, opportunities for corruption can be minimised. Instead of relying on the integrity of state officials, their power should be restricted in as many areas of society as possible.

This means closing any avenues or opportunities for corruption that the state may have. If a tender for a particular service presents an opportunity for corruption, that service should be insourced or eliminated. This ensures that clean governance is ingrained in the system, rather than being dependent on the moral character of politicians.

Practically, reducing the size and scope of the state involves reevaluating public procurement procedures. This includes revisiting schemes like BEE, which have facilitated corruption through patronage networks.

The recent National Lottery scandal involving the deputy president highlights how state contracts and BEE can be exploited by political elites. The attempted appointment of Minister Mantashe’s son to a SETA board demonstrates how patronage is prevalent at multiple levels of the state.

Another solution presented by the Free Market Foundation is to reduce cabinet to only constitutionally mandated ministries. Rather than the behemoth which we currently have in South Africa, reducing the cabinet to only 10 ministries as suggested by the FMF is a viable solution to eliminating corruption.

This does not imply that the people at these ministries will be saints who will not be corrupt. Yet by eliminating all those ministries, we would have subsequently eliminated the avenues for corruption existent within them. Not to mention the fact that the money which will be saved by not spending in those eliminated ministries can be redirected elsewhere or can be left with taxpayers by the state collecting less revenue given its reduced needs.

Instead of searching for the perfect individual who will not show favoritism in contracts or appointments, we should eliminate the need for such opportunities. This can be achieved by

reducing the size of the South African cabinet and consolidating constitutionally mandated departments, while also transferring services from the state to the private sector.

It may be impossible to completely eradicate corruption due to human nature being driven by self-interest. Instead of aiming for the unattainable, the focus should be on removing opportunities for corruption by limiting the power of politicians.

By reducing the state's sphere of influence, individuals and their voluntary organizations can take responsibility for their daily lives. This will allow citizens to keep the taxes previously collected for state activities, while significantly reducing the potential for corruption.

Failure to decrease the state’s sphere of influence will lead to continued corruption and exploitation by corrupt politicians, further entrenching our subjugation.

Zakhele Mthembu, BA Law LLB (Wits), is Policy Officer at the Free Market Foundation.