MINISTER GERALDINE J FRASER-MOLEKETI, MINISTER FOR PUBLIC SERVICE AND ADMINISTRATION ON THE BUSINESS SURVEY ON CORRUPTION

PRETORIA, 22 APRIL 2002

Corruption is a universal problem and is particularly harmful in developing countries. Its effects can seriously constrain development of national economies and governance arrangements. Corruption erodes stability and trust, and it damages the ethos of democratic governments. It also negates good governance attempts, and its macro-economic and social costs are immense.

During 1997 Government launched a national anti-corruption programme that was soon followed by Public Service and National anti-corruption Summits.

Late in 1999, Government also co-hosted the 9th International Anti-corruption Conference. Three years into the process, Government's assessment was that good progress was being made with implementation of the various resolutions of the Summits, and many departments and agencies have put in place solid systems to fight corruption. The success were many and included implementation of the Protected Disclosures Act, procurement reforms and declaration of financial assets by senior managers in the public service.

At operational levels problems were emerging, most notably the absence of clear anti-corruption legislation, insufficient coordination of anti-corruption work within the public sector and between the various sectors of our society, and poor information about corruption and the impact of anti-corruption measures. Thus Government decided to develop a comprehensive and integrated anti-corruption strategy for the public sector, and to roll its programme out to all sectors of society. In January this year Government adopted the Public Service Anti-corruption Strategy, followed shortly thereafter with approval of the Prevention of Corruption Bill. The Bill is the first step of rollout of the strategy.

In order to address a substantial part of the information deficiency, Government, in partnership with the United Nations Office for Drug Control and Crime Prevention, is undertaking a comprehensive country assessment on corruption. This assessment also forms part of a wider partnership agreement to support the Government's national anti-corruption programme.

The country assessment on corruption comprises of many elements, including perception and experience surveys amongst households, public service delivery institutions and businesses, analyses of legislation and codes of conduct and data collection on criminal and disciplinary cases related to corruption. The final report on this assessment will provide the country with baseline information on corruption, and in years to come we will be able to track improvements in the governance environment as far as it is affected by corruption. Citizens of this country, and especially the business community, cannot dispute the fact that we require solid and objective information on the scourge of corruption if we want to encourage economic and social investment.

The Business Survey element of the country assessment on corruption holds advantages for businesses and ultimately the country as a whole.

Better information about corruption within businesses, between businesses and the public sector will enable Government and businesses to formulate and implement appropriate remedies. Successful corruption reduction will enable us to channel our scarce resources towards development of our businesses and the environment that is conducive to wealth and job creation. It is unfortunately a fact of life that foreign investors consider levels of corruption, admittedly amongst many other factors, when choosing sites for investment.

To date many of these investors have been hoodwinked by skewed perception of levels of corruption in our country, and also in the rest of our region. It is essential that we establish a base of information that can inform these potential investors of the true state of affairs, and for us to counter through visible action where problems exist.

Government is committed to fighting corruption, not only in the public sector, but also in all sectors of society. As I indicated elsewhere, Business has made similar commitments and has done good work. However as activists of vuk' uzenzele, they are once again challenged to rise to the occasion. For the assessment to be successful and useful we require those businesses that will be approached over the next few weeks to cooperate.

Government appreciates the contribution of the UNODCCP towards our fight against this scourge. Thank you very much Mr Rob Boone and members of your office for your expertise and financial assistance in this regard. With your assistance it is feasible for our country to undertake such a programme which will help us to find remedies to our situation as well as address the negative perceptions that persist in society. Government also appreciates Business' commitment and co-operation in combating corruption.

I thank you.

Issued by: Dept of Public Service & Administration