The CEO of IRS Forensic Investigations Chad Thomas believes that more than a year into the Madlanga Commission, the findings will have an impact on the South African economy.
Thomas, who spoke at a PSG Financial Services event Tuesday, said that South Africa ranks as one of the five most violent societies in the world.
“Unfortunately, we fall under the categories of countries such as Haiti, which have not had a functioning administration for many years, and Afghanistan, which has been at war for decades.
"With all we have from a mineral resource perspective and human capital perspective, we could never identify why we have this massive problem with crime.
"The answer is the deficit of leadership within our policing structure that led us to this situation.”
Thomas added that the good thing about the Madlanga Commission is that there is action taking place while the commission is ongoing.
“President Cyril Ramaphosa has received reports, and he has initiated a process to hold those accountable. We are seeing arrests, we are seeing dismissals, and we have seen resignations.”
Thomas said that there have been billions of rands of losses to the economy due to corruption and illegal trade.
“We are definitely talking billions; it started with the illicit economy, which is counterfeit cigarettes, counterfeit alcohol, and the Zama Zama’s with illegal gold mining taking place, and which has spread to other mining operations.
"We have seen diamonds in the Northern Cape, chrome in the North West, and coal in Mpumalanga — all these were destined for illicit markets.”
Thomas added that what is growing out of this illicit market is organised crime, which is now permeating.
“You can't have a government tender without being extorted by a so-called business forum, which is actually a cartel.
"We find construction mafias approaching projects like the construction of a bridge and demanding 30% of the project to proceed. Organised syndicates have become emboldened.”
Thomas said that Thembisa Hospital must be one of the saddest examples of organised crime.
The Special Investigating Unit (SIU) found that more than R2 billion intended for healthcare at Tembisa Hospital was siphoned off.
“Because they kept all the amounts under R500,000, it meant that it did not go through the normal bid process.
"The suspects involved in that particular fraud would have to go to site and get sign-off on their purchase orders and bid documents in order to get paid.
"That means they had to walk past the patients whose lives they meant to be changing.
"We are not talking about small money; we are talking about the R2 billion that was plundered from Thembisa Hospital. We seem to become desensitised as a nation to the impact and effects of corruption.”
Thomas believes with the Madlanga Commission of Inquiry, the country is moving in the right direction to hold those accountable for corruption.
“It's changing for the better.
"If it continues to work and we will no longer have compromised officers who are supporting the illicit market, it will create jobs, it will bring more money into the fiscus, and it will boost the money that SARS is able to collect.
"That is, without a doubt, the main areas where South Africa is losing money.”
yogashen.pillay@nationalmg.co.za