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Corrupt corporates

10th June 2022

By: Martin Zhuwakinyu

Creamer Media Senior Deputy Editor

     

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The adage that it takes two to tango appears to be perpetually in the blind spot of those who don’t miss an opportunity to highlight how venal politicians can be. It’s always the Jacob Zumas of this world who are the chief villains of the piece in popular narratives about how corruption has caused citizens untold suffering.

But how about the corruptors? They are equally blameworthy, if not more so. If they don’t offer to grease the palms of those in power or accept ‘invitations’ from them to do so, then corruption would be nonexistent – even if the politicians were innately venal.

And who are the corruptors? Those to whom Zuma has become a metaphor for grand corruption would say it’s rascals like the Gupta brothers who set up so-called businesses whose main aim is to milk government departments and State-owned companies dry. In other words, these fellows are wheeler- dealers whose companies are nothing less than criminal enterprises.

Missing from this narrative is the fact that respectable multinational corporations often behave in precisely the same way the Gupta-linked companies behaved in South Africa for about a decade – until upstanding citizens blew the whistle on their nefarious activities. Who would have imagined that, away from the public glare, a reputable company such as mining and commodities trader Glencore engaged in what US authorities have described as a “staggering” bribery scheme targeting politicians in several countries for more than a decade? In Africa, these countries included Nigeria, Cameroon, Côte d’Ivoire, Equatorial Guinea and the Democratic Republic of Congo. Glencore’s malfeasance during this period also included commodity price manipulation.

After owning up to its immoral ways on May 24, the Switzerland-headquartered company has been ordered by US authorities to pay a $1.2-billion fine – for violating the country’s Foreign Corrupt Practices Act.

Big corporates bribing their way to lucrative contracts in African countries is not a new phenomenon. I recall writing an in-depth story about the corruption around the Lesotho Highlands Water Project – the multibillion-rand scheme that transfers water from Lesotho to South Africa – nearly two decades ago. The evidence that emerged during the corruption trial of Masupha Sole, the then CEO of the Lesotho Highlands Water Authority, led to the conviction or indictment of several global companies. These included Canada’s Acres International and Germany’s Lahmeyer International and Schneider Electric.

The evidence at Sole’s trial gave the lie to the popular perception that developed-world companies that pay bribes in Third World countries do so under pressure from corrupt public-sector officials. Actually, they often are proactive participants.

Someone once said corruption in high places probably kills more people than natural disasters. This could be true, if one thinks of the health facilities that cannot be built, the medicines that cannot be bought and the roads that have degenerated into death traps because the money that was supposed to be used for these purposes ends up lining the pockets of our corrupt leaders.

Corruption also kills hope. Where a country is endowed with natural resources such as minerals, citizens do expect that the wealth generated from extracting these resources will be used to improve their lot. This hardly happens where corruption reigns supreme.

It’s for this reason that I support calls that the $1.2-billion fine imposed on Glencore be used to empower Africans. Suggestions have included injecting part of the fine into Prosper Africa, a US programme that aims to provide African businesses with market insights and deal support, and to finance the transition from dirty energy to renewables.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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