Notes on Meaning and Implications of State Capture Why we must act - - PowerPoint PPT Presentation

notes on meaning and implications of state capture
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Notes on Meaning and Implications of State Capture Why we must act - - PowerPoint PPT Presentation

Notes on Meaning and Implications of State Capture Why we must act Elements of a Definition Shadow state and a shadow governing party Wholesale corruption Public institutions as private instruments Corrosion


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SLIDE 1

Notes on Meaning and Implications of State Capture

“Why we must act…”

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SLIDE 2

Elements of a Definition

  • Shadow state and a shadow governing party
  • Wholesale corruption
  • Public institutions as private instruments
  • Corrosion (destruction) of public institutions
  • Erosion of the constitution and the rule of law
  • Reactionary populist politics
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SLIDE 3

Connect the dots…

  • State of Capture Report
  • PG’s Application for a Declarator to the High Court
  • Regiments Capital v Trillian papers re “delinquent directorship”
  • SACC Unburdening Panel’s Report
  • Betrayal of a Promise Report
  • OUTA’s Case Book
  • Denel’s application to ratify Denel Asia JV with VR Laser
  • Fireblade application against Gigaba
  • HOB application for license
  • PRASA Mandamus application against the Hawks
  • Media reports re Trillian payments from Eskom
  • Media reports re Transnet 1064 contract
  • Media reports on Gupta emails
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SLIDE 4

Template for Capturing an Institution

  • Smear campaign through “intelligence dossier”
  • Announcement of an investigation
  • Suspension of the incumbents
  • Replacement focus on investigating the previous incumbents
  • Results of investigation are leaked to the press
  • Subjects of investigation are prohibited from defending themselves publicly
  • An internal restructuring takes place in which the “ancien regime” is displaced
  • After a review old processes that were functional are suddenly outsourced
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SLIDE 5

Examples of Shadow State and Party

  • Cabinet appointments at Saxonwold
  • SOE appointments at Saxonwold
  • Division of labour/power in cabinet from Saxonwold
  • “Fake” cabinet statements
  • Cabinet reshuffle in March 2017 - “a list from somewhere…”
  • ESKOM and Transnet
  • Sale of strategic oil stocks
  • Sale of SABC archives
  • International relations
  • Citizenship
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SLIDE 6

Examples of Grand Corruption

  • Proposed nuclear tender
  • FIC Certificate of 72 suspicious transaction reports
  • Transnet Tender 1064
  • ESKOM coal supply agreements
  • ESKOM prepayments for coal
  • ESKOM diesel contracts
  • PRASA locomotives and signalling tender
  • SASSA grants distribution tender
  • Sale of strategic oil stock
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SLIDE 7

Public Institutions v Private Instruments

  • Absolve your friends, prosecute your enemy
  • Refund thine-self, audit the rest
  • Contract to yourself, shake-down others
  • Make the rules as you go along, others must keep up
  • Your subjects shall pay for your wedding
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SLIDE 8

Redirecting or Destroying Public Institutions

  • Reducing the autonomy of SARB, SARS, NT, Hawks, IPID, NPA
  • Questioning the independence of the judiciary and media
  • Outsourcing state’s core functions, capability
  • SASSA grants = enrichment of foreign capital
  • CIEX v SARB = Change of Mandate & Constitutional

Amendment

  • Purpose of mining charter = empowerment of “naturalised”

blacks

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SLIDE 9

Rule of Law or Ruler’s Whim

  • Party discipline above the country’s constitution
  • Selective disciplinary actions against “dissidents”
  • “Privatised” intelligence service
  • Omar al Bashir and weekend diplomatic immunity
  • Promotion of wrongdoers, demotion of the principled
  • Selective investigations and prosecutions

9

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SLIDE 10

Dog-whistle Politics

  • 100% Zulu Boy
  • “Ungqingili”
  • Demonisation of Khwezi during the rape trial
  • Secrets of foreign-born traders (Operation Fiela)
  • Traditional courts bill
  • Defence of violence against women
  • White Monopoly Capital & RET
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SLIDE 11

Why did they succeed (until now?)

  • Vestiges of apartheid enable populist politics
  • Historical partiality and oppression of the rule of law and state institutions
  • Politicisation of the criminal justice system
  • “Schizophrenia” of the new public service - professional or political?
  • Instability of the public service
  • PR Electoral System - one-party dominance
  • Fetish over history and ideology
  • Control over president and levers of state
  • Demobilisation of civil society
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SLIDE 12

Effects of State Capture

  • Resources for development are redirected to private consumption
  • Government activities are directed to only those projects that can be
  • utsourced
  • Defence of corruption always needs populist politics
  • Erosion of constitutional democracy
  • Increased govt debt, borrowing costs, threats to fiscal sovereignty
  • Raid on workers pensions
  • Potential limits on social expenditure
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SLIDE 13

Countervailing Forces

  • Independent and vigilant media
  • Independent judiciary
  • Thriving civil society
  • Low economic growth
  • Incompetence and brazenness
  • High levels of political consciousness in SA
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SLIDE 14

Quo Vadis?