South Africa continues to be a nation blighted by corruption.
Last year it placed 82nd out of 180 countries on Transparency International’s Corruption Perceptions Index, showing no improvement on its 2023 ranking.
In the past 13 years, local non-profit Corruption Watch has received more than 46 000 complaints of corruption from South Africans, further corroborating the country’s unfortunate standing on the global index.
The organisation’s Accountable Together corruption report shows that in 2024, 34% of complaints received related to maladministration, 21% to fraud, 16% to employment irregularities, 15% to bribery or extortion, and 13% to procurement irregularities.
Unsavoury relationships that exist between South Africa’s business community and politically-connected individuals are raising concerns that companies failing to form these connections are doomed to fail.
In the highly competitive South African market, companies are under immense pressure to meet sales targets and deliver profits, which can sometimes push employees toward unethical behaviour. Some studies suggest that more than 40% of South African companies have been victimised by perpetrators of bribery and corruption.
Muhammad Ali, MD of ISO standards and systems implementation consultancy World Wide Industrial & Systems Engineers (WWISE) says that many small businesses, in particular, find themselves in positions where bribery becomes a “way out” for securing projects.
However, he notes that this challenge is not unique to South Africa and is “a global problem often hidden behind layers of legal jargon and high-end corporate speak”.
According to Ali, procurement and supply chain officials are frequently involved in bribery schemes. He points to cases where companies, despite bidding fairly for tenders, find themselves up against officials demanding bribes in exchange for the contract. Wealthy larger firms are willing to pay what is being asked.
“But for small businesses with limited resources, winning tenders becomes a daunting, often impossible task, with success rates dropping below 1%.”
Ali adds that South African law enforcement agencies do find some success in stamping out corruption but need greater levels of accountability and improved systems to expose perpetrators and issue consequences without bias or influence.
If bribery and corruption are to be tackled properly, he says, internal controls, particularly independent audits and lifestyle audits, needed to be implemented both in the private and public sectors.
“Companies need to introduce policies and procedures that promote accountability and transparency,” he advises. By working with authorities to ensure that expenses are managed ethically, businesses can reduce the chances of corruption creeping into their operations.
He also suggests that businesses should invest in systems, such as those falling under the International Organisation for Standardisation (ISO), that detect unethical behaviours before they escalate. Effective auditing, thorough background checks, and monitoring employee activities can act as deterrents to would-be perpetrators.
He especially recommends the adoption of the ISO 37001 anti-bribery management system.
International investors are increasingly demanding this certification, as it demonstrates a company’s commitment to ethical practices and regulatory compliance.
“The certification is a risk-based approach to managing anti-bribery controls,” Ali explains. “When implemented properly, it ensures that top management is held accountable for their actions.”