Director at the Centre for the Study of Democracy Professor Steven Friedman
Accountability was key to the long-term success of a business and an enabler of economic growth, but the lack of accountability in South Africa was not only government’s burden to bear, Professor Steven Friedman said on Monday.
Speaking at the sixteenth Southern African Internal Audit Conference, held in Sandton, Friedman, who is director at the Centre for the Study of Democracy, which is co-hosted by Rhodes University and the University of Johannesburg, stressed that people in power had a responsibility to be accountable to citizens.
“If we want a better government and better service, accountability is key – it’s the core of a well-functioning society,” he said.
Unless government works effectively to embed accountability across the board, with all employees and office bearers aware of the consequences of their actions, South Africa could lose economic opportunities.
He cited the potential growth of townships and cities that could have sparked growth had they received the service delivery the government promised.
While the middle class was in a better position to hold their local government responsible for service delivery, the poor were mostly ignored and have to resort to unorganised protests that more often than not failed.
Friedman said that well-organised protests – without destruction of property and violence and in conjunction with the generation of public support, taking the issues to courts and outlining clear sets of demands – were a good way to bring the problems to the attention of government, adding that it was also true that aspiring politicians exploited the discontent to advance their careers, sidestepping the real challenges faced by the communities.
However, he pointed out that, as a new democracy, the nation was making progress, citing President Jacobs Zuma’s recent removal from Cabinet of two Ministers, including the former Communications Minister Dina Pule, who was shifted after a public outcry over alleged unethical actions.
Government and the private sector should both be held accountable as both had a powerful impact on citizens.
He explained, as an example, that, for one, the country’s unsecured lending industry, with unreasonable and unaffordable interest rates, lend cash to the poor who were unable to repay the loan.
Managing and implementing accountability starts at the top, with management examining their tone, upholding ethics and being accountable while delivering the appropriate measures to address unethical behaviour and incentives for accountability, Sasol GM finance: investor relations operations Sam Barnfather added.
She noted that, increasingly, stakeholders, employees and communities were becoming more engaged with a firm, which led to further transparency.
Auditor-General of South Africa Terence Nombembe noted that it was about being willing “to do the right thing” and being transparent, while taking advantage of the opportunity to reform and transform business.
However, CGF Research Institute CEO Terry Booysen cautioned that, while the country has made some progress on taking action against bribery and corruption, perception sometimes overshadowed facts.
“People need to see decisive action being taken,” he noted, explaining that ensuring visible accountability would be a move to change deep-rooted perceptions.
As a country, companies and government needed to establish solid structures with clear policies in line with the “rule of the law”.