Jul 13, 2012
Business makes integrity-pact overturesBack
Johannesburg|Africa|Business Unity South Africa|Projects|Public Enterprises|UNGC South Africa|Africa|South Africa|Ebrahim Patel|Futhi Mtoba|Infrastructure|Jacob Zuma|Malusi Gigaba|Pravin Gordhan
© Reuse this
Speaking at a National Business Initiative (NBI) function held in Johannesburg in a bid to urge South African corporates to sign up to the United Nations Global Compact (UNGC), which has anticorruption as one of its ten core principles, Mtoba indicated that business had already lobbied the National Treasury on the matter.
Earlier this year, Finance Minister Pravin Gordhan indicated that his department was reviewing procurement rules in an effort to improve spending efficiency and reduce corruption. Public-sector financial management failures would receive attention and there might also be changes to regulations to ensure greater transparency and public disclosure and more rigorous tender procedures.
The NBI, Busa and the South Africa arm of the UNGC had, through its anticorruption projects, already introduced an integrity pact model, which had been developed by Transparency International in the 1990s.
Mtoba, who is also UNGC South Africa chairperson, said the model demanded that participants in large procurement programmes agree to a set of procedures, as well as an independent monitor, designed to ensure that transactions were well governed and corruption free.
The South African government had already acknowledged that public spending was prone to wastage and corruption and that there was a need to ensure that the R850-billion public infrastructure programme did not fall prey to that tendency.
Mtoba said she was excited that President Jacob Zuma used his State of the Nation address to support the notion of integrity pacts, and that the idea had received further momentum when Economic Development Minister Ebrahim Patel indicated that government was keen of concluding an integrity accord with business.
Also speaking at the event, Public Enterprises Minister Malusi Gigaba encouraged South African companies to embrace the UNGC principles, noting that all eight of the State-owned companies falling under his department were now signatories.
He said government would continue to pursue other social-compact economic policy interventions, as had already been the case with the local procurement, green economy and skills accords.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...