Deputy chief justice Raymond Zondo and his team at the state capture commission were all smiles last week. Smiles are rare at the commission. Usually it’s stories of looting, bribery, witness harassment, corruption — and Jacob Zuma evading accountability.
For a brief moment last week, however, the news was good: the commission had received a note from management consultants McKinsey saying that the company had returned fees irregularly paid to it by Transnet.
As FM readers know, "irregular" is the polite word employed by accountants and lawyers to replace the stronger but more truthful and straightforward word "corrupt". In this case, the dodgy money returned by McKinsey to Transnet is R870m.
Like the deputy chief justice, I see this move by McKinsey as a nice gesture. As Zondo put it: "I think when some people criticise this commission for the costs that have been incurred through its work, they remember at least here is this one occasion where, as a result of discussions between a unit of the commission and McKinsey, a substantial amount of money has been or will be repaid."
Let’s not get overexcited, though.
The commission’s evidence leader, Matthew Chaskalson, pointed out that the R870m is less than 3% of the total amount squandered in irregular contracts tainted by state capture. Despite this, he said, McKinsey "has shown what a responsible corporate citizen does in these circumstances, and I am looking forward to seeing what those other companies do".
"Those other companies" are the many "respectable" SA corporates and multinationals who have been extensively and credibly linked to state capture in the Zuma years. For example, when former SA Revenue Service (Sars) commissioner Tom Moyane appeared at the commission last week, all one could think about were the millions that consultants Bain earned advising him. Will Bain pay back the humongous fees it happily took while it knew (because we all knew as far back as 2011) that institutions such as Sars were being hollowed out to serve the Zuma kleptocracy?
So, the bits and bobs that are coming in from McKinsey and others are welcome but are too little and too late. What we need is greater and faster reform of how we police corruption in SA. We all know the government will not help. In fact, the structure of our policing encourages the corrupt to continue because they will never be caught, charged, prosecuted or jailed.
Those who behaved ethically have been ruined while the thugs are running free and thriving. It should not be this way
This is an opportunity for SA business. Organised business should help find solutions that not only prevent collusion between public and private sector actors who are intent on corruption, but make it impossible. It should help develop mechanisms that make executives and corporates think twice before aiding and abetting corrupt public sector players to commit crimes. If ethics are dead in the public sector, it is time to make them a headline issue in the private sector. Business needs to come up with a mechanism that encourages and protects whistle-blowers and nurtures a culture of ethical behaviour.
What has been heartbreaking throughout the Zondo commission has been the absolute devastation that whistle-blowing has wrought on those who spoke up, and how little institutional support they’ve had. Those who behaved ethically have been ruined while the thugs are running free and are thriving. It should not be this way.
Both McKinsey and Bain claim expertise in complex change management. They should be roped in to develop ways to minimise public-private sector corruption. Let’s put the expertise of those who may have done wrong in the past to good use and bring the corruption monster to heel.
I would welcome a comprehensive study and proposals, developed with organised business, from these two behemoths on how we can strengthen corporates to behave ethically when dealing with crooked public sector players. If the bribers (corporates) can safely refuse to bribe, then the bribees (usually politicians and public servants) have less room to manoeuvre.
SA is stuck in a rut. Our politicians talk about plans and do nothing to make what we have actually work. So let’s strengthen the means by which doing business ethically becomes a natural part of the culture. Let’s put to work those in business who have previously disgraced themselves.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.