To: Office of the President

CC: – Office of the Speaker of Parliament

– Office of the Minister of Finance

– The Standing Committee on Public Accounts

– South African Revenue Service

– Office of the Auditor General

– National Economic Development and Labour Council

Dear President Cyril Ramaphosa

We, the undersigned organisations, commend you for the decisive action taken over the last few

weeks in dealing with the Covid-19 crisis.

We note the efforts of the state in placing the health and well-being of people at the forefront of

decision-making.

However, we are acutely aware of the dire financial straits in which many find themselves. The

snaking queues of people who turn up at food distribution sites and the daily reports of starving

families is something that troubles us deeply.

It is becoming notably clearer, that many find themselves simply unable to comply with

lockdown measures, as they try just about anything to make a few Rands and put bread on the

table.

The impact of the lockdown has showed up South Africa’s stark historical inequalities.

This virus is a raw reminder of inequality, and how when crisis strikes the poor, it does so with a

different strain of severity.

The lockdown has made apparent the deep schism that exists between those who have access to

data and those who don’t.

It has allowed existing social tensions, such as xenophobia, to be reasserted, as the margin to

access resources becomes smaller.

Yet, we are also aware that over the period of our democracy, if the interests of the people had

been put above self and political interests, communities now in severe distress, would have been

better buffered against the socio-economic impact of the virus.

In is in this context that we write to you, expressing our concern about how government’s

stimulus package will be used and what measures are in place to monitor emergency spending.

The announcement of the R500 billion relief package was a welcome one, even though some

have subsequently been critical of its effectiveness in stemming the economic crisis.

In your recent address, you committed to ensuring that funds dedicated to combatting the

coronavirus response “are not wasted and are not stolen”.

While we note that a portion of this money will be going directly to recipients in need, we are

however, extremely worried that as money is allocated at different tiers of government – to

various departments and municipalities – tracking expenditure becomes more complex.

We can ill-afford the diversion, looting and capture of funding meant to rescue the country from

economic collapse. We cannot allow what is really the only chance left for millions of South

Africans to weather the economic storm, to be squandered at the hands of thieves, rent-seekers

and political thugs.

Already in communities, there have been numerous reports of how simple food parcel

distribution processes are being manipulated – not by hungry people who desperately need food

– but by political actors who want use humanitarian aid as a bargaining chip.

Already there are questions being raised about the illogical decision to put up a fence along the

Beit Bridge border post, that is reportedly being cut through by Zimbabweans who cross into

South Africa as a lifeline to purchase food. This was at a cost of a tremendous R37 million!

Already, there are concerns about the prices at which for instance, Personal Protective

Equipment is being purchased, and whether this in fact reaching our hospitals and others on the

frontline in time.

We’ve heard about the controversial purchasing of blankets at R22 million in KwaZulu Natal

and a R160 million e-learning contract that’s being questioned in the Eastern Cape. Recent

stories about the Department of Human Settlements, Water and Sanitation firing and re-hiring

officials, underscored by accusations of corruption and political battles, leaves us nervous about

what the next few months could entail.

What assurances do we have in future that money intended for water tanks in communities will

not be stolen by a state official, or that the price of sanitisers for re-opened schools will not be

highly inflated?

Local and international experience shows that emergencies increase the risk of corruption and

broader supply chain failure. The lack of transparency in government’s current emergency

procurement processes enhances these risks.

Problems in procurement, if not engaged with openly and sincerely, will serve to undermine trust

in government. Trust is a very fragile concept, especially if one takes into account how reports of

police and army brutality have eroded citizen’s own trust in the state in recent weeks. Failure to

curtail corruption during this period, will simply ‘put the nail in the coffin’.

During this crisis, trust is a vital element in government’s ability to coordinate society towards a

comprehensive and collective response. If we get it right now, it presents the country with an

opportunity to ensure that on a long term basis, a culture of transparency and zero tolerance

towards corruption is adopted.

It is in this context that we request that the following measures be considered as a matter of

urgency:

– We believe that government can draw in civil society organisations active in the fight

against corruption to play a monitoring role and be granted access to information in order

to do so.

– We would like to understand any current measures being proposed by government for

ensuring appropriate oversight and transparency.

– Treasury must publish information about reprioritisations within the existing budget.

– Decisions about securing funding from institutions such as the International Monetary

Fund require broader consultation and transparency. The South African public needs to

fully understand what the implications of such loans may mean in the long-term.

– A detailed and regularly updated report of how the R500 billion stimulus package is

being used, especially how monies are being allocated to municipalities, must be made

publically accessible.

– A detailed and regularly updated report of how monies collected through the Solidarity

Fund is being used, should be made publically available.

– The Office of the Chief Procurement Officer operates the eTender Publication online

portal. The purpose of this portal is to make supply chain management information easily

accessible to the public, but information is not always uploaded timeously. If used

correctly and efficiently, it provides a ready-made infrastructure through which the

transparency of emergency procurement can be rapidly improved, allowing for civil

society and others to monitor processes in real time.

– The Auditor General’s offer to send in experts to monitor how the R500 billion is spent

by government departments and municipalities should be accepted.

– National Treasury regulations, instructions and the procurement policies already provide

for a wide-range of documentation and reporting requirements. These are often directed

to relevant provincial treasuries and municipal councils. For the duration of Treasury’s

Covid-19 procurement dispensation, reporting should in all cases also be directed to the

Auditor General and Treasury.

– Information about who is tendering for contracts should be made public, as well as the

vetting process to verify their credentials. Items being tendered for must be costed per

unit, and civil society should be able to access this information so that the public can

monitor if prices are being inflated before a tender is awarded.

– Information about procuring entities, the process followed and written reasons for

undertaking deviation from ordinary processes should be made public, as well as details

around delivery times/ date of completion of contracts. Entities not complying with

reporting requirements should be included on a published list of non-compliant entities.

– The Department of Public Service and Administration’s newly conceptualised central

disciplinary database to monitor, track and record public servants under investigation for

misconduct, corruption and fraud should be put to use. The impact of the pandemic will

be with us for an extended timeframe, which means that public procurement in relation to

the virus may not just be a once off occurrence. Public servants who appear on this

database should at a minimum be prevented from handling emergency spending.

– Parliament should exercise its powers of oversight over the Executive more effectively.

The institution was rightly criticised for shutting down and abandoning its oversight role

during a period which called for far greater monitoring and oversight.

– Perks for government officials should be cut, to minimise frivolous expenditure.

– Government should establish in conjunction with civil society an anti-corruption hotline/

online service specifically in relation to Covid-19. This platform should allow ordinary

people to report for instance, food hamper and municipal corruption.

– Political parties should sanction members found to be involved in food hamper

corruption.

– The Health Sector Anti-Corruption Forum and other oversight bodies should be

sufficiently resourced to effectively monitor and investigate corruption specific to the

sector in relation to the Covid-19 crisis.

– Special corruption tribunals could be established to ensure that any suspected corruption

related to Covid-19 emergency spend is dealt with swiftly.

– The Special Investigating Unit’s request for a national proclamation to go after corruption

cases related to Covid-19 should be supported.

– Corporate sector corruption needs stringent monitoring. Companies who are not tax

compliant or who are found guilty of corruption, should not be receiving state bailouts

and loans. Forensic capacity at SARS and Treasury should be specifically activated to

investigate possible cases of corruption during this period.

– Government should make accessible information related to its agreements with the

banking sector, who with government stand guarantee to R200 billion of the stimulus

package.

– Civil society, business and labour need to be taken into government’s confidence.

Participation mechanisms need to be developed to improve how the country’s overall

response is being handled and whether the stimulus plan is effective or has significant

gaps, such as aiding those in the informal sector.

Honourable President, this period will no doubt test the tenacity of our country. It presents

challenges unlike any that we have faced before. Yet, we cannot allow our response to these

challenges to demobilise the public from effectively participating in our hard-won democracy.

To the contrary, it should allow us to strengthen our commitment to the Constitution. It should

empower us to ensure that the measures taken and the allocation of resources, is in fact for the

benefit of the people.

Yet, we are cognisant that state capture can well manifest itself in new ways. We remain wary of

the vultures waiting on the sidelines in bid to use the suffering of people to steal, loot and

manipulate policy procedures and democratic processes for their own benefit. These vultures do

not care if the economy collapses, if we head towards a kleptocracy, if repression and disorder

indeed become the order of the day, or if millions of children go to bed hungry. Their sole

interests revolve securing a power-base from which to operate and stuff their greedy pockets.

If we fail in our duties to protect the public from these corrupt vultures during this time, we lose

the last fragment of hope that we can offer to people.

We implore you, Mr President, to consider our appeals to not only defend justice during this

period, but to strengthen the hand of the public in ensuring that their own justice is not trampled

upon.

Signed by:

Active Citizens Movement

Ahmed Kathrada Foundation

Corruption Watch

Johannesburg Against Injustice

My Vote Counts

Open Secrets

Organisation Undoing Tax Abuse

Patriotic Movement

Public Affairs Research Institute

#UniteBehind

For enquiries, contact Ahmed Kathrada Foundation Executive Director, Neeshan Balton –

082 373 1143.