South Africa Probes $7 Billion Corruption in State-Owned Companies

The Special Investigative Unit (SIU) on Tuesday revealed that it is investigating over $7 billion in alleged corruption across major state-owned companies in South Africa. These investigations, some of which have been ongoing since 2018, involve businesses like Transnet, Denel, Eskom, the National Lotteries Commission, South African Airways, and PRASA.

At Transnet, nearly $4 billion in questionable contracts and numerous corruption cases are under scrutiny. The state power company Eskom is being investigated for over 270 contracts worth $2.2 billion. Meanwhile, PRASA, the passenger rail company, is dealing with allegations of $540 million in losses, partly due to payments made to over 1,200 “ghost employees.” Experts doubt that much of the stolen funds will be recovered.

These issues reportedly trace back to the presidency of Jacob Zuma, who faced accusations of enabling corruption in exchange for government contracts. While a judicial inquiry implicated many officials, few have been prosecuted. The corruption crisis has severely impacted South Africa’s economy. Eskom is particularly implicated, as the country has struggled with power outages due to mismanagement. The SIU said it will continue investigating numerous cases across state-run businesses and government departments.

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