Commissions, Corruption and State Capture: Charting the Way Forward for South Africa

The report examines 'state capture' in South Africa, defined as a systematic project to redirect state resources for private gain by weakening democratic institutions. It focuses on the Commission of Inquiry into Allegations of State Capture (Zondo Commission), detailing its findings on the targeting of state-owned enterprises like Transnet and Eskom, and the role of the Gupta family. The document also analyzes other South African commissions (e.g., Nugent, Mokgoro, Mpati) and provides a comparative analysis with Kenya's Bosire Commission to illustrate the limitations of commissions in achieving individual accountability. Finally, it discusses necessary reforms in public procurement, whistle-blower protection, and the professionalization of the public service to prevent future capture.

• State capture in South Africa is characterized as a systematic project where a small group of actors and collaborators conspired to redirect state resources for private gain by exploiting or weakening state institutions, including law enforcement and intelligence services.
• The Zondo Commission was the largest and most expensive commission in South Africa since the Truth and Reconciliation Commission, costing nearly ZAR 1 billion ($54 million) and producing a report of 5,437 pages.
• State-owned enterprises (SOEs) were primary targets for resource extraction due to their corporate-like structures and the ability of board members to influence commercial transactions. Transnet saw ZAR 41.2 billion ($2.2 billion) in contracts irregularly awarded to Gupta-linked entities, representing 72.2% of all SOE contracts linked to state capture.
• At Eskom, state capture was facilitated by the appointment of compromised officials to the board and senior executive positions, leading to gross corporate governance failures and the irregular prepayment of ZAR 659 million ($35 million) to Tegeta for the acquisition of Optimum Coal Mine at inflated prices.
• The State Security Agency (SSA) was used as a tool for state capture, with the creation of a 'Special Operations Unit' designed to serve the personal political interests of Jacob Zuma and the politicization of intelligence to mirror ANC factional lines.
• The ANC's policy of 'cadre deployment'—placing politically connected persons in key posts within the public administration—served as the essential mechanism for state capture, allowing the removal of non-compliant officials.
• South Africa's Black Economic Empowerment (BEE) policies have been vulnerable to 'fronting' and 'tenderpreneurship,' where politically connected elites use race-based preferences to extract rent and concentrate wealth rather than achieving broad redistribution.
• Whistle-blowers were critical in exposing the Gupta family's influence, yet they face extreme risks, including social ostracization and physical violence, as exemplified by the mob-style execution of Department of Health official Babita Deokaran.
• A comparative analysis of Kenya's Bosire Commission into the Goldenberg Affair suggests that commissions can be used as political devices to deflect public attention and create an appearance of reform without achieving individual accountability or asset recovery.

APA

FEBRUARY, J., & MIRZOYEV, S. (2024). Commissions, Corruption and State Capture: Charting the Way Forward for South Africa. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2024/05/SAIIA_SR_CommissionsCorruptionState.pdf

Chicago

FEBRUARY, JUDITH, and SANAN MIRZOYEV. Commissions, Corruption and State Capture: Charting the Way Forward for South Africa. South African Institute of International Affairs, 2024. https://saiia.org.za/wp-content/uploads/2024/05/SAIIA_SR_CommissionsCorruptionState.pdf.

Wikipedia

{{cite report |last1=FEBRUARY |first1=JUDITH |last2=MIRZOYEV |first2=SANAN |title=Commissions, Corruption and State Capture: Charting the Way Forward for South Africa |publisher=South African Institute of International Affairs |date=April 2024 |url=https://saiia.org.za/wp-content/uploads/2024/05/SAIIA_SR_CommissionsCorruptionState.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{february2024commissions, author = {FEBRUARY, JUDITH and MIRZOYEV, SANAN}, title = {{Commissions, Corruption and State Capture: Charting the Way Forward for South Africa}}, institution = {South African Institute of International Affairs}, year = {2024}, month = apr, url = {https://saiia.org.za/wp-content/uploads/2024/05/SAIIA_SR_CommissionsCorruptionState.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }