SPECIAL REPORT
Organised crime in Africa The rush for cash during Covid-19 highlights conflicting interests in SA Conflicts of interest continue to be a major enabler of procurement fraud in South Africa. By Richard Chelin, Researcher, ENACT
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ollowing public outcry over the personal protective equipment (PPE) contract Khusela Diko’s husband’s company, Royal Bhaca Projects, received from the Gauteng Department of Health, the couple released a joint statement. They insisted ‘there was no corruption in the bidding and subsequent awarding of the PPE contract.’ In other words, due process was followed. Diko, the former spokesperson for South African President Cyril Ramaphosa, goes further to note that the public outcry is based on the mistrust and suspicion of the public from years of cronyism where individuals close to political office unduly benefited from the state. She says the contract was cancelled and no funds were received from the department – a claim being investigated by South Africa’s
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SECURITY FOCUS AFRICA OCTOBER 2020
Special Investigating Unit (SIU). The Diko scandal, which came about during the initial Covid-19 outbreak, is one of many concerning PPE tender contracts involving government officials recently. This has highlighted an aspect of procurement corruption to which little attention is paid and which is the most difficult to address – conflict of interest. Conflict of interest may be defined as a situation in which a public official has a private interest that may influence the impartial exercise of official duties, and decisions. Such a situation may not necessarily involve wrongdoing or misconduct yet it could result in a situation where public officials take advantage of their official position and insider knowledge to gain private advantage at the expense of the public interest.
Managing conflict of interest is a challenge; instituting mechanisms for its implementation will help in the long term This was highlighted in the former public protector’s State of Capture report, revealing how corruption was a manifestation of various conflicts of interest within government and stateowned entities. A conflict of interest situation is usually informed by two factors. First, the private interest of the public official, or their relative or associate. That is, benefits the public official or his or her family members or associates stand to receive in the decision made by the official. These can include property, financial benefits, awards of contracts etc. Second, a conflict between private and public interests whereby the official has a
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