Understanding the social impact of corruption in South Africa

Incidents of corruption in South Africa, which include economic crimes such as fraud and money laundering, are well documented both in the media and other publications. Corruption can be understood as an “economic crime” due to its wide impact across South African society.

24 Feb 2026 4 min read Corporate & White Collar Investigations and Dispute Resolution Alert Article

At a glance

  • Corruption can be understood as an “economic crime due to its wide impact across South African society.
  • Post the publication of the Zondo Commission’s report, criminal investigations and prosecution of corruption-related matters have moved slowly, and some cases have encountered legal hurdles.
  • Proper investigation and making inroads into the prosecution of corruption cases will, in time, help to remove the elephant of corruption from South Africa, with the ultimate goal of economic growth and prosperity for all.

The effect of corruption across societies globally, including South Africa, includes:

  • Weakening in social morality and values: Corruption normalises unethical behaviour and cultural acceptance of corruption becomes the norm.
  • Worsening inequality: Corruption benefits affluent and connected individuals and groups, leading to poorer communities becoming even more marginalised.
  • Declining quality and accessibility of public services: In South Africa, major corruption scandals have been uncovered in, among others, the healthcare sector; trends in lack of electricity and water supply are ever-growing; and our roads are deteriorating at a rapid rate.
  • Increasing criminal activity: Criminal networks are thriving by bribing officials. The Madlanga Commission is a case in point; a public commission aimed at investigating allegations of corruption, political interference and collusion within the criminal justice system, particularly involving the police and the judiciary.
  • Erosion of trust in public institutions: Corruption undermines citizens’ confidence in the state, the justice system, law enforcement and public services.

The Zondo Commission

This is not an exhaustive list, but the impact of corruption with regards to the increase of economic and other crimes and South Africa’s response are worth delving deeper into. The Zondo Commission (Commission) provided an account of corruption in South Africa, especially grand corruption known as state capture. The Commission was established in 2018 to investigate allegations of widespread corruption and state capture pursuant to a report drafted by the Public Protector.

State capture was defined as “the systematic manipulation of state institutions and resources by private individuals or entities for personal gain”. The Commission found that:

“State capture in the South African context evolved as a project by which a relatively small group of actors, together with their network of collaborators inside and outside of the state, conspired systematically (criminally and in defiance of the Constitution) to redirect resources from the state for their gain. This was facilitated by a deliberate effort to exploit or weaken key state institutions and public entities, including law enforcement institutions and intelligence services. To a large extent, this occurred through strategic appointments and dismissals at public entities and a reorganisation of procurement processes. The process involved the undermining of oversight mechanisms and the manipulation of the public narrative in favour of those who sought to capture the state.”

Interestingly, one of the key findings in the Commission’s report referred to the socio-economic impact of corruption, indicating that the adverse effects of state capture on South Africa’s economy and society are extensive, with a detrimental impact on public service delivery, job creation, investment and social cohesion. It further found that the misallocation of resources (that is, the looting of state funds) increases the socio-economic divide, perpetuating inequality and hindering the development of the South Africa society as a whole.

Commission recommendations

The Commission made various recommendations, including investigating and prosecuting (where evidence was found) individuals for their involvement in state capture, mostly concerning charges of fraud, corruption, money laundering, contravention of the Public Finance Management Act 1 of 1999, the Prevention and Combating of Corrupt Activities Act 12 of 2004 and the Prevention of Organised Crime Act 121 of 1998, and racketeering.

There is a strong public sentiment, which we agree with, that to remove corruption from South Africa, effective investigation needs to be conducted to lead to successful prosecution. This sentiment especially refers to all the matters investigated during the Commission, and recommended for investigation by the Commission. Along with the South African Police Service and Hawks’ investigations, asset forfeiture should play a more visible role as perpetrators and their relatives should not be allowed to enjoy the proceeds of crime.

Post the publication of the Commission’s report, criminal investigations and prosecution of corruption-related matters have moved slowly, and some cases have encountered legal hurdles, such as the Nulane matter in the Free State, in which the accused were acquitted. The Supreme Court of Appeal overturned the Nulane accused’s acquittal and ordered a retrial. Other signs of the elephant of corruption being addressed in South Africa include the current criminal legal prosecutions relating to alleged fraud and corruption at Transnet and Denel. These matters are before court, and the accused are out on bail.

Implementation of the Commission’s recommendations is ongoing. In July 2025, the President reported that R11 billion in stolen assets has been recovered, with 218 active investigations and high-profile trials scheduled for 2025–2026. However, successful convictions remain limited.

The recent appointment of the National Deputy Director of Public Prosecutions will make inroads into prosecution of the corruption cases and will move and in time remove the elephant of corruption from South Africa, with the ultimate goal of economic growth and prosperity for all.

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