Each day, we hear, learn and see how the South African government ministers and senior officials are becoming richer by looting of the state resources. For a government minister or senior official this often begin in the first year of being appointed in the office. By May 2015, almost 90% of government ministers under the ANC government were reported to have at least a million in the banking accounts. This makes the ANC government the “government of the millionaires”.
We have learned that they become millionaires within the first 12 months of being appointed in to office. Each day and week we read in the media that the so and so at the top managerial or ministerial level is being investigated or found guilty of involvement in secret business transactions and corruption dealings – where the looting of state resources by a virtue of their political affiliations, positions and class has got big hands to play.
This has become our daily experiences, we have got used to it. It does not shock us anymore to hear that the minister has benefited form a deal where a foreign company had done business with the state. It does not shock us anymore that there are those senior officials who do business with the state, who win tenders without following proper tender procedures, others without even producing tax clearance certificates.
It is a culture in the whole country; from ward committee level to the upper layer in the top government or national level. Ward councilors collude with local businesses to steal the services meant for the poor and to their top braas in government top positions; looting state resources and corruption that goes with it has become a culture among even ordinary people in hostels, communities and townships. The results are violent confrontations with the ruling elite who have shown much interests in money and material than the people they proclaim to represent. Violence is everywhere because people are tired of talking, now they want action.
Since 1993 during transitional period, we have traveled different stages that have let us to where we are today. We have seen the South African economy opening up for foreign “investments” after long period of international sanctions against apartheid South Africa. During this period, between 1993 and 2001, the government moved from RDP, to GEAR, to BEE, to BBBEE and now NDP policies in macro-economic policies. These developments borne in our society problems after another, these policies are failures after another to address grassroots challenges, and have brought something very bad for humanity’s existences – greedy black bourgeoisie class.
Nelson Mandela’s family inherited R500 million in family estates from all over the world while he have spent almost 27 years in prison and became a president only for 4 years. Where did he get the money from? Thabo Mbeki, after he became the president, there were worries of his lucrative businesses growing in the oil industry in the Middle East and East Africa. Thabo Mbeki used his connections while in power in South Africa to connect with other African bourgeoisies to wrap up deals for his businesses under the cover of NEPAD; a failed programme meant to push African economy into the global market. Thabo Mbeki’s shares today are worth R1,2 billion in the oil industry globally.
A chaotic president of democratic republic of South Africa is Mr. Jacob Zuma. While we have learned about his son spreading his wings in the oil and media industries, we have also learned about his covert relationships with the Guptas family. We are also informed that JZ’s nephew and daughter are also making some strides in the mining industry in Africa. The names are Kulubuse Zuma, Thuthukile Zuma and Duduzane Zuma are all over the news regarding their business empires and their influences in the top positions in senior level of government. Unconfirmed figure of about R2 billion is said to be shipped to Dubai by the Guptas with the Zuma name tag on the package bag.
But let us understand what Kleptocracy is and what are its characteristics, effects and long term destructions:
Kleptocracy, alternatively cleptocracy or kleptarchy, is a term applied to a government seen as having a particularly severe and systemic problem with officials or a ruling class (collectively, kleptocrats) taking advantage of corruption to extend their personal wealth and political power. Typically this system involves the embezzlement of state funds at the expense of the wider population, sometimes without even the pretense of honest service.
Kleptocracies are generally associated with dictatorships, oligarchies, military juntas, or other forms of autocratic and nepotist governments in which external oversight is impossible or does not exist. This lack of oversight can be caused or exacerbated by the ability of the kleptocratic officials to control both the supply of public funds and the means disbursal for those funds. Kleptocratic rulers often treat their country’s treasury as a source of personal wealth, spending funds on luxury goods and extravagances as they see fit. Many kleptocratic rulers secretly transfer public funds into hidden personal numbered bank accounts in foreign countries to provide for themselves if removed from power.
Kleptocracy is most common in developing countries whose economies are based on the export of natural resources. Such export incomes constitute a form of economic rent and are easier to siphon off without causing the income to decrease.
The effects of a kleptocratic regime or government on a nation are typically adverse in regards to the welfare of the state’s economy, political affairs and civil rights. Kleptocratic governance typically ruins prospects of foreign investment and drastically weakens the domestic market and cross-border trade. As kleptocracies often embezzle money from their citizens by misusing funds derived from tax payments, or engage heavily in money laundering schemes, they tend to heavily degrade quality of life for citizens.
In addition, the money that kleptocrats steal is diverted from funds earmarked for public amenities such as the building of hospitals, schools, roads, parks – having further adverse effects on the quality of life of citizens. The informal oligarchy that results from a kleptocratic elite subverts democracy (or any other political format).
In early 2004, the German anti-corruption NGO Transparency International released a list of what it believes to be the ten most self-enriching leaders in the past 4 decades. In order of amount allegedly stolen in US dollars, they were:
- Former Indonesian President Suharto ($15 billion – $35 billion)
- Former Philippine President Ferdinand Marcos (at least $10 billion by 1986, equivalent to about $21.6 billion in 2014 dollars)
- Former Congolese President Mobutu Sese Seko ($5 billion)
- Former Nigerian Head of State Sani Abacha ($2 billion – $5 billion)
- Former Yugoslav President Slobodan MiloševiÄ‡ ($1 billion)
- Former Haitian President Jean-Claude Duvalier (“Baby Doc”) ($300 million – $800 million)
- Former Peruvian President Alberto Fujimori ($600 million)
- Former Ukrainian Prime Minister Pavlo Lazarenko ($114 million – $200 million)
- Former Nicaraguan President Arnoldo Alemán ($100 million)
- Former Philippine President Joseph Estrada ($78 million – $80 million)
Further more the followings also are involved:
The Russian president Vladimir Putin is alleged to be the “head of the clan” whose assets are estimated at $200 billion.
- Sources have also shown that Egyptian President Hosni Mubarak stole up to $70 billion.
- In addition, other sources have listed former PLO Chairman Yasser Arafat as having stolen $1 billion to $10 billion; and Pakistani President Asif Ali Zardari to have received kickbacks on contracts and misappropriating public funds, siphoning over $2 billion to his Swiss accounts.
- Nursultan Nazarbayev is a head of the Kazakhstan ruling clan with $7 billion assets.
The partially recognized state of Kosovo is also run by a kleptocratic regime, mainly formed of members from one of the country’s largest political parties, Democratic Party of Kosovo. A report on the wealth of Kosovan politicians showed that despite their relatively low incomes as civil servants, a significant number had amassed personal wealth sometimes amounting to sums exceeding several million euros.
More recently, EULEX reported on a specific case where illegal payments of 1.4 million euros had been made between the Kosovan Ministry of Internal Affairs and the Austrian State Printing Company which had previously won a tender to print Kosovan passports, and a former transport minister and current deputy-president of the ruling Democratic Party of Kosovo Fatmir Limaj was also arrested by EULEX together with six other suspects on charges of organised crime and embezzling at least two million euros.
China’s former prime minister, Wen Jiabao, left office in 2013 with his close relatives controlling assets worth at least $2.7 billion. These revelations were censored in print and censored online in China.
The term kleptocracy was also used to refer to the Russian economy soon after the Soviet collapse in 1991. The “democrats,” led by Yegor Gaidar and Anatoly Chubais, freed prices in 1992 and unleashed hyperinflation before they privatized Russia’s assets. Most Russian citizens lost their savings in only a few weeks. A few billionaire “oligarchs” amassed fortunes not by creating new enterprises, but by arbitraging the huge difference between old domestic prices for Russian commodities and the prices prevailing on the world market. Instead of investing in the Russian economy, they stashed billions of dollars in Swiss bank accounts. Experts estimate that as much as $15 billion left Russia each year as either capital flight or laundered money from illegal transactions. Referring to Russia Daniel Kimmage also used the terms: “kerdocracy” (“rule based on the desire for material gain”) or “khrematisamenocracy” (“rule by those who transact business for their own profit”).
South Sudan obtained independence in July 2011 as a kleptocracy – a militarized, corrupt neo-patrimonial system of governance. By the time of independence, the South Sudanese “political marketplace” was so expensive that the country’s comparatively copious revenue was consumed by the military-political patronage system, with almost nothing left for public services, development or institution building. The efforts of national technocrats and foreign donors produced bubbles of institutional integrity but the system as a whole was entirely resistant to reform. The January 2012 shutdown of oil production bankrupted the system. Even an experienced and talented political business manager would have struggled, and President Salva Kiir did not display the required skills. No sooner had shots been fired than the compact holding the SPLA together fell apart and civil war ensued. Drawing upon long-term observation of elite politics in South Sudan, this article explains both the roots of kleptocratic government and its dire consequences.
Today in South Africa, we have the current and future problems to deal with; ANC is in power practicing Kleptocracy, the emerging layer of the bourgeoisie political class emerging as socialists from EFF threatening to come to power during local government elections calling for reforms instead of revolution, and DA seeking to replace the old ANC free-market capitalist order with the newly racist approach of kleptocratic system. In all these, the masses would be the ones to pay the price!