The submission of the response to the recommendations of the Judicial Commission into Allegations of State Capture, Corruption and Fraud in the Public Sector marked a significant milestone in the fight against corruption and State capture and in rebuilding the capacity of the State.
Spokesperson to President Cyril Ramaphosa, Vincent Magwenya, said this while addressing media during his second weekly briefing at the Union Buildings on Tuesday.
“More pleasing for the President are the gains already attained in this effort against corruption by various State institutions.
“The recent approval by Cabinet of the national framework towards the implementation of the professionalisation of the public sector, which was released by (Acting Public Service and Administration) Minister Thulas Nxesi this morning is another key milestone aimed at developing a professional and ethical public service that will not bow down to undue pressure seeking to undermine government institutions and perpetrate state capture,” Magwenya said.
As a result of the work done by the of the Judicial Commission of Inquiry, the Investigating Directorate that was established within the National Prosecuting Authority has to date enrolled 26 cases, declared 89 investigations and 165 accused persons have appeared in court for alleged State capture-related offences.
The law enforcement agencies have, to date, been granted freezing or preservation orders to the value of R12.9 billion.
A total of R2.9 billion has been recovered and returned to the affected entities and with South African Revenue Service (SARS) has collected R4.8 billion in unpaid taxes arising from the work of the Commission.
“South Africans should therefore take to heart that the work of the Commission is bearing fruit and will continue to do so as government and many other State institutions continue implementing their respective areas of the Commission’s recommendations,” Magwenya said.
Achievements
Giving a summary of the sixth administration achievements, Magwenya said President Ramaphosa ascended into the Presidency to inherit a State crippled through corruption, State capture and a stagnant economy.
He said the COVID-19 pandemic worsened the challenges of unemployment and poverty.
“Notwithstanding these mounting difficulties, the President embarked on a bold investment, growth and employment drive. This administration has raised R1.14 trillion in new investment commitments through four SA Investment Conferences.
“This is over 90% of the R1.2 trillion target for government’s ambitious investment drive. Of these commitments around R330 billion has already flowed into the economy,” Magwenya said.
Among many achievements, the sixth administration has established the Youth Employment Service (YES), together with private sector partners, which has to date created over 86 500 work experiences for young people.
In tackling poverty and building human capital, the sixth administration introduced the National Minimum Wage for the first time in South Africa’s history, guaranteeing a minimum floor below which no worker may be paid.
The administration further expanded social grants for people most affected by COVID-19, including the Special SRD Grant, which reached around 11 million unemployed people.
Management of President Ramaphosa’s financial interests
Magwenya told media that President Ramaphosa embarked on a process to comply with the Executive Ethics Code, with respect to his financial interests, on assumption of the position of Deputy President in 2014.
The Executive Ethics Code requires that members of the executive should either dispose of financial interests, which may give rise to a conflict of interest or place the administration of such interests under the control of an independent and professional person.
Magwenya said the President decided to dispose of those interests, which may give rise to a conflict.
Magwenya explained that on 26 November 2014, Shanduka announced Mr Ramaphosa’s divestment from the group.
This involved the disposal of interests in ‘regulated’ sectors like mining, telecommunications and energy, i.e. those which may give rise to a conflict of interest. He retained assets in some ‘non-regulated’ sectors, like property and restaurants.
“Although not required by the Executive Ethics Code, Mr Ramaphosa put these remaining assets from the Shanduka divestment under the management of independent and professional persons. These non-regulated interests have subsequently been disposed of.
“The President’s farming operations have always been separate from Shanduka and were therefore not part of these transactions. The farming properties are not businesses that may give rise to a conflict of interest,” Magwenya said.
He further explained that President Ramaphosa’s directorships and shareholding in the respective farming entities have been included in his annual Declaration of Interests to Parliament (2014-2018) and the Secretary of Cabinet (2014-2022).
“While the farming entities do trade in the purchase, sale and breeding of game and livestock, the President does not earn a salary from these entities. Revenues earned from the trading of game and livestock cover salaries of workers, upkeep of the properties, and the remainder is re-invested into the breeding of unique game and livestock species, veterinary services and other related costs,” Magwenya said.
Responding to journalists on the recent criticism directed at President Ramaphosa, Magwenya emphasised that it is important that when people criticise the President’s performance, they must do so based on “facts and not rumour mongering and other misinformed perceptions.”
