CAPE TOWN, South Africa (AP) — South African authorities are investigating more than $7 billion in alleged corruption across major state-owned enterprises, according to a new report from the nation’s anti-graft unit.
The Special Investigating Unit (SIU) revealed this week that ongoing probes target six key government entities:
- Transnet (ports and rail) – $4 billion in suspect contracts
- Eskom (power utility) – $2.2 billion under investigation
- PRASA (passenger rail) – $540 million allegedly stolen
- Denel (arms manufacturer)
- South African Airways
- National Lotteries Commission
The investigations, some dating back to 2018, expose systemic graft that flourished under former President Jacob Zuma’s administration. A judicial inquiry previously found evidence of “state capture,” where private interests allegedly corrupted government institutions.
At Eskom, investigators are examining 270 contracts tied to the country’s ongoing electricity crisis. PRASA reportedly paid 1,200 fictitious “ghost employees,” while a separate $300 million World Cup-related contract is under scrutiny.
President Cyril Ramaphosa has pledged to combat corruption, but few high-profile convictions have occurred. The scandals contributed to the ruling ANC party’s recent electoral losses.
The SIU noted about 40 additional corruption probes are underway across various government departments, suggesting the full scale of malfeasance may be even greater. Experts warn most stolen funds will likely never be recovered.