At the times when further investigations are still underway on new state capture, a new report from the National Treasury has it that about 14,000 government officials have contracts with the state.
An investigation by National Treasury says that as many as 14,000 government officials are listed as directors of companies who have contracts with the state against government regulations.
Bloomberg reported the National treasury as saying that it found names of about 12000 dead people still registered to its companies.
This, according to the treasury gives a gloomy picture of how government tenders are being fraudulently rigged in such a way that specific individuals get to control them.
Added to this, Treasury’s procurement office revealed that companies are set up with Fake documents and the names of dead people, who then tender for contracts at high and inflated prices – making it seem as if the legitimate companies are offering the same services for much cheaper.
“It looks like there is competition, yet it’s the same guy,” said the Treasury unit’s head Schalk Human who equally added that Treasury would be reporting the 14,000 government officials doing business with the state “even if we have to drag them to court”.
“The information is there but the question is whether there is the political will to act decisively to relieve the civil servants doing business with the state of their employment,” he said.
This Report from the national treasury comes at the time the South African Council of Churches (SACC) warned of the country slowing becoming a mafia state as government officials continue to take part in illicit enterprises.
Fraud and inflated prices are said to consume as much as 40% of South Africa’s R600 billion budget and this, according to reports, played major roles in the economic downturn of the country.
The SACC is arguably the biggest organised formation in South Africa, having 36 member churches and organisations representing millions of Christians.
South African were ushered into new truths and new horrors about the state of their beloved country as the SACC general secretary Bishop Malusi Mpumlwana detailed the evolution of the capture of the state, including the appointments in Cabinet and state-owned enterprises to enable the looting of the coffers.
According to him, Government ministers acting in concert with private interests use regulatory instruments or policy decisions in an arbitrary manner to ‘shake down’ incumbent businesses – including black businesses – and favour particular interests.
Instead of prioritising job creation and economic growth, decisions are taken for the benefit of a particular company, faction or group,” Mpumlwana said.
“The problem is bigger than corruption, it’s chaos.” he added as he ran through the movements and activities of “key players” in the network, such as ministers Malusi Gigaba, Lynne Brown and Mosebenzi Zwane, as well as the embattled Eskom CEO Brian Molefe, and how they served the Gupta empire.
“There is an untold amount of money that leaves South Africa. We don’t know the impact it has on the fiscus.” Mpumlwana said.