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 (destruction) of public institutions
• Erosion of the constitution and the rule of law
• Reactionary populist politics

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

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

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

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

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

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

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

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

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

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

Countervailing Forces

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

Quo Vadis?