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- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- Ask the CIO
- Building the Hybrid Cloud
- Connected Government: How to Build and Procure Network Services for the Future
- Continuing Diagnostics and Mitigation: Discussion of Progress and Next Steps
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- The Future of IT: How CIOs Can Enable the Service-Oriented Enterprise
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- The Intersection: Where Technology Meets Transformation
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- Mitigating Insider Threats in Virtual & Cloud Environments
- Modern Mission Critical Series
- Moving to the Cloud. What's the best approach for me
- Navigating Tough Choices in Government Cloud Computing
- The New Generation of Database
- Reimagining the Next Generation of Government
- Satellite Communications: Acquiring SATCOM in Tight Times
- Targeting Advanced Threats: Proven Methods from Detection through Remediation
- Transformative Technology: Desktop Virtualization in Government
- The Truth About IT Opex and Software Defined Networking
- Value of Health IT
- Air Traffic Management Transformation Report
- Cloud First Report
- General Dynamics IT Enterprise Center
- Gov Cloud Minute
- Government in Technology Series
- Homeland Security Cybersecurity Market Report
- National Cybersecurity Awareness Month
- Technology Insights
- The Cyber Security Report
- The Next Generation Cyber Security Experts
Shows & Panels
Report: SAfrica losing battle against corruption
Friday - 5/3/2013, 3:18pm EDT
JOHANNESBURG (AP) -- South Africa is fighting a losing battle against corruption which sucked up nearly 1 billion rand ($111 million) in taxpayers' money last year, according to a new report that contradicts government statements that efforts to stamp out financial misconduct are going well.
"Corruption is rampant," the author of the report, financial forensics expert Peter Allwright, said Friday. "It's out of control ... and the dedicated units that have been created to fight financial misconduct are in essence fighting a losing battle."
South Africa is awash in scandals about misuse of government money and power -- in one of the latest, taxpayers forked out around 250 million rand (nearly $28 million) on upgrades to President Jacob Zuma's private residence in his home village, including three new houses, a sewerage treatment plant and an underground bunker.
South Africans outraged by the lavish expenditure and disbelieving of their president's claims that he did not know how much it cost or any details of the upgrade have been asking how many homes that money could have built for some of the millions of citizens who live without running water or electricity.
The gulf between the fabulously wealthy and the impoverished is growing ever wider in the country with the continent's largest economy, fueling ever more violent service delivery protests as the African National Congress, which has governed since white minority rule ended in 1994, gears up for elections next year. The ANC is expected to win but its margins of victory get lower at every election where fewer and fewer people vote.
People calling into radio talk shows have been wondering whether corruption is not one of the reasons that Britain announced this week it is ending development aid to South Africa in 2015. British aid this year amounts to $29.5 million -- slightly more than the government has spent on Zuma's private residence.
In what is seen as an influence-peddling scandal, four security officials including two brigadiers-general were suspended Friday in a political firestorm over why an immigrant Indian family that is friendly with Zuma and a major contributor to his party was allowed to land a chartered jet without proper authorization at the country's main air force military base.
The South African National Defense Force has said it was not informed in what is considered a serious breach of security.
The incident "tells us who we are," The Star newspaper said in an editorial. "If you have money and friends in powerful places, you can do as you wish."
Allwright told The Associated Press that while 88 percent of people tried for financial misconduct are found guilty, only 19 percent are dismissed. Forty-three percent get final written warnings.
"Essentially you have a one-in-five chance of being dismissed and the rest remain in the public service and continue with financial misconduct because there are no real consequences," said Allwright, an attorney with law firm Edward Nathan Sonnenbergs.
Others are able "to get off scot-free" by resigning and getting another government job where they can continue to steal, he said. That was because an insufficient investigative capacity in the public service means nearly two-thirds of cases take more than 90 days to investigate. "You can give 30 days' notice and leave, and the public service office then often abandons the investigation," Allwright said.
"The majority of perpetrators remain in their positions and often continue to commit financial misconduct," his report says. Or, "The situation often results in corrupt officials moving to other institutions thereby avoiding sanctioning and finding a new hunting ground for unlawful behavior."
It says the public service has consistently failed to institute criminal charges against offenders, even though it is required by law.
Only 13 percent of the money lost to corruption is recovered, he said.
In contrast, Zuma said at a rally last weekend celebrating freedom in South Africa that "positive inroads are being made in the fight against corruption." He said 718 people are being investigated for corrupt activities and more than 1 billion rand ($110 million) of suspected stolen funds has been frozen.
Allwright's report says South Africa lost 930 million rand ($103 million) to financial misconduct by workers in national and provincial governments in the fiscal year 2011-2012, up from 346 million rand ($38.5 million) in 2009-2010. South Africa's national budget this year is 1.5 trillion rand ($167 billion).
The amount missing from public coffers is probably much higher because corruption cases are underreported and the figures do not include local governments, Allwright said. Despite government promises to fight corruption and mismanagement, little has changed since a government report on local governments in 2009 warned that in some cases "accountable government and the rule of law had collapsed or were collapsing" because of corruption, profiteering and mismanagement.