http://www.sundaytimes.co.za/zones/sundaytimesNEW/topstories/topstories11177
94938.aspx

The price of corruption

Friday June 03, 2005 12:45 - (SA)

Public sector corruption costs South Africa between 50 and 150 billion rand
per year, an anti-corruption expert told the next leg of the Schabir Shaik
case today.
 
Hennie van Vuuren, from the Institute for Security Studies, was called by
the state to testify in aggravation of sentence for Schabir Shaik who was
convicted on two counts of corruption and one of fraud in connection with
dealings relating to the government's arms deal and his relationship with
Deputy President Jacob Zuma.
 
"Law is only as good as the willingness of the state to implement
anti-corruption measures," Van Vuuren told the court which was still packed
after yesterday's judgment.
 
Shaik, who appeared more relaxed and was more talkative was back in court,
accompanied by his wife Zuleikha and his brother Mo, Chippy and Yunis. He is
on R100,000 bail pending his sentencing.
 
As an example Van Vuuren cited the Department of Social Welfare where 40,000
public servants received grants to which they were not entitled.
 
Van Vuuren said that out of 4,000 South Africans surveyed only two percent
reported corruption. The others did not believe that "whistle blowing" would
be dealt with, if at all, by the state.
 
"That reflected a lack of faith in state institutions," said Van Vuuren.
 
In 2004, Social Development Minister Zola Skweyiya revealed that social
grants scams cost the state R2 billion a year and as much as R10 billion may
have been lost to corrupt practices in the first 10 years of democracy, he
said.

Van Vuuren said the sectors most open to corruption were public servants,
the construction industry, followed by the arms and defence industry. The
impact of low salaries was not necessarily a factor they looked at while
conducting their research.
 
Corruption thrived on the silence of the people involved in the act and
therefore it was difficult to estimate the extent thereof.

However, a conservative calculation showed that roughly 10 percent of all
transactions per country were corrupt.
 
According to the African Union, corruption costs the continent at least $150
billion in "squandered wealth".
 
Van Vuuren said the World Bank argued that bribes in excess of one trillion
US dollars were paid annually.

"Corruption, the abuse of entrusted power for private benefit, is one of the
biggest developmental challenges facing the world today," he said.
 
"It is the poor woman and man who are too often the ultimate victim of
corrupt activity perpetrated by members of the business and political elite,
in a quest for conspicuous consumption - euphemistically known as 'living
beyond ones means'".

Sapa 




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