University of the Witwatersrand Professor Karl von Holdt on Friday said given the current focus on former President Jacob Zuma and the controversial Gupta family, it is important to note that an informal political-economic system, including its intersection with violence, was already emerging in South Africa prior to and outside the emergence of the Zuma network.

Von Holdt was addressing delegates at a seminar organised by the Society, Work and Politics Institute and foundation for social democracy Friedrich-Ebert-Stiftung where he launched his working paper: “The political economy of corruption: elite-formation, factions and violence”. 

Among the topics addressed in his paper was the rise of the informal political-economic system, which he says was a barrier to numerous black entrepreneurs and aspirant entrepreneurs who have been unable to access opportunities because of political gatekeeping or because they lacked the capital or the skills.

He also discussed the Zuma-Gupta nexus and State capture.

Von Holdt said the Guptas exercised tremendous power behind the scenes, often vetting and suggesting who should be appointed to what position, and not infrequently meeting with potential appointees beforehand to let them know exactly what they were expected to do. 

“The most brazen example that has come to light was a meeting with the former deputy finance minister under Pravin Gordhan, Mcebisi Jonas, in which he alleges they offered him a sum of R600-million if he would agree to take over as finance minister and facilitate their deals,” said Von Holdt.

He went on to explain that President Cyril Ramaphosa was facing a daunting task in eradicating corruption. He mentioned that Ramaphosa was in a similar situation to former president Thabo Mbeki.

Von Holdt highlighted that Ramaphosa’s victory faces such weaknesses as unstable coalitions, corruption and violence.

“With regard to the first, such a coalition would have to include a majority of factions in the ANC [African National Congress], and this means including key figures and networks of corruption. The more such figures are excluded, the more scope there is for disruption and counter-mobilisation against the Ramaphosa coalition,” he explained.