Thread by @OpenSecretsZA

We are back with the #ABCsofEconomicCrime!

In this week’s ABCs: The Commission of Inquiry to Allegations of State Capture, Corruption & Fraud in the Public Sector including Organs of State, i.e. the #StateCaptureInquiry

2 years & almost R800 million later, do we really understand what #StateCapture is, what a commission of inquiry is & what powers the #StateCaptureInquiry has? We answer this in the #ABCsofEconomicCrime.

#StateCapture is not unique to South Africa. State capture is a common form of corruption in many transitional and developing nations. #ABCsofEconomicCrime

The term #StateCapture was coined by Chilean anti-corruption expert Dr. Daniel Kaufmann & the Dean of Georgetown University Joel Hellman, during their studies of post-Soviet states. #ABCsofEconomicCrime

In their testimony at the #StateCaptureInquiry in 2018, Hellman & Kaufmann defined state capture as:

"The efforts of individuals or firms to shape the formation of laws, policies, rules & regulations of the state to their own advantage by providing illicit private benefits to public officials”. #ABCsofEconomicCrime

This shaping of the rules of the game can also include the control & allocation of public finances & assets. #ABCsofEconomicCrime

#StateCapture has huge public costs:
1. It erodes the capacity of the state to deliver services, deepening poverty & inequality.
2. It breeds a 'pay for play' culture in politics
3. It erodes trust in public institutions, thus undermining democracy
#ABCsofEconomicCrime

We covered the costs of state capture in our report & submission to the #StateCaptureInquiry with @ShadowWorldInv1 - The Enablers: The Bankers, Acccountants and Lawyers that Cashed in on State Capture #ABCsofEconomicCrime
opensecrets.org.za/the-enablers/

The #StateCaptureInquiry was established in 2018 following the recommendation of then Public Protector Thuli Madonsela in 2016 after her ‘State of Capture’ report revealed allegations of: "improper and unethical conduct by the President and other state...
#ABCsofEconomicCrime

functionaries relating to alleged improper relationships & involvement of the Gupta family in the removal & appointment of Ministers & Directors of State-Owned Enterprises resulting in improper & possibly corrupt award of...
#ABCsofEconomicCrime

state contracts & benefits to the Gupta family's businesses.”
- what a mouthful!
#ABCsofEconomicCrime

You can read the State of Capture report here:
sahistory.org.za/archive/state-…
#ABCsofEconomicCrime

The recommendation for an inquiry into state capture was made to then president Jacob Zuma who approached the High Court to dismiss Madonsela’s findings. #ABCsofEconomicCrime

However, in December 2017, the High Court found in Madonsela’s favour and ordered the president to institute a commission of inquiry into allegations of state capture within 30 days. #ABCsofEconomicCrime
news24.com/news24/SouthAf…

Good times…

https://twitter.com/GugsM/status/940917048603004928?s=20

On the 9th of February 2018, Jacob Zuma signs government gazette no. 41436, establishing The Commission of Inquiry to Allegations of State Capture, Corruption & Fraud in the Public Sector including Organs of State. #ABCsofEconomicCrime

The gazette sets out the terms of reference and some of the powers of the commission. You can read the gazette here: statecapture.org.za/uploads/GOVERN…
#ABCsofEconomicCrime

Basically- a commission of inquiry is a tool used by government to inquire and investigate public issues & concerns. The Commission’s focus is on fact finding & offering recommendations to the president.
#ABCsofEconomicCrime

Here is a helpful thread by @pierredevos on what a commission of inquiry is:

https://twitter.com/pierredevos/status/1328200612236980224?s=20

Findings made in the commission can be used as inputs for future investigations & criminal proceedings. The power of the commission lies in its ability to summon individuals and companies. #ABCsofEconomicCrime

There should be no exception for powerful corporations and politicians. Remember our 101 key witnesses list? #ABCsofEconomicCrime #DearJudgeZondo

On the 16th of December we wrote to @StateCaptureCom asking that it summon 17 key corporations implicated in #StateCapture.
#ABCsofEconomicCrime

opensecrets.org.za/urgent-call-to…

As of today, the #StateCaptureInquiry has resulted in the cross-examination of 278 witnesses and the collection of 159,109 pages and 1 exabyte of data as evidence. #ABCsofEconomicCrime

Remember this guy? #ABCSofEconomicCrime

and this...
#ABCsofEconomicCrime

we have been through a lot. #StateCaptureInquiry

Civil society organisations have also made submissions to the commission detailing state capture in various state organs. On the 12th of Oct 2019, the Civil Society Working Group on State Capture held a People’s Hearing on State Capture, at Constitution Hill. #ABCsofEconomicCrime

The People’s Hearing was a public forum where members of the public, community leaders & activists were could reflect on the impact of state capture, either in person or through videos. #ABCsofEconomicCrime #DearJudgeZondo

Alongside this, documentary shorts produced by civil society formed part of the evidence heard on people’s experiences of state capture. #ABCsofEconomicCrime #DearJudgeZondo

*correction*
278 witnesses have been interviewed*

You can read some of the submissions made by civil society, watch the People’s Hearing and the documentary shorts on our website.
#ABCsofEconomicCrime.
opensecrets.org.za/civil-society-…

Due to the volume of evidence, the commission has had to apply for extensions to conduct its work thoroughly. The latest request for a 3-month extension was filed in December 2020. #ABCsofEconomicCrime

According to Judge Zondo, the additional 3 months would be used to write up his report on evidence submitted on the corruption that took place during the years of #StateCapture & to make recommendations. #ABCsofEconomicCrime
businesslive.co.za/bd/national/20…

The judge also emphasised that special attention would be given in the report to the protection of whistle-blowers, who the judge said were crucial in the fight against corruption. #ABCsofEconomicCrime
#ProtectWhistleblowers

It is also important that the commission achieve truth and justice for South African people. #COVID19 has certainly highlighted the huge costs of corruption to human lives. #ABCsofEconomicCrime

That is all for this week’s #ABCsofEconomicCrime. Catch you next time😉