Corruption and the public money: The South African perspective

Abstract

South African government and economic prosperity are threatened by public finance corruption. From apartheid, poor public financial management, weak regulatory frameworks, and entrenched political favouritism have exacerbated the problem. This chapter examines South Africa's public finance corruption, its theoretical foundation, and its effects on public trust, economic growth, and government. Rent-seeking organisations foster corruption, as Buchanan's (1980) public choice theory and Klitgaard's (1988) monopoly and discretion model demonstrate. False financial reporting, procurement fraud, embezzlement, and fund theft drain public funding for vital services and infrastructure. Also given is institutional economics illustrating how weak institutions promote corruption. Even with laws, combating corruption is difficult. The chapter uses global case studies to promote legal frameworks, transparency, and public institution competence to fight corruption. The chapter recommends ethical governance, public sector capacity-building, citizen participation, legislation, and cultural reforms to fight corruption. It further underscores the policy challenges inherent in implementing these anti-corruption strategies, including political resistance, limited institutional resources, and societal complicity. Future research should examine anti-corruption strategies and how technology might improve public financial management openness.

Keywords: {'name': 'Corruption, Public Finance, South Africa, Public Procurement, Institutional Economics, Anti-Corruption Reform'}

Authors & affiliations

Masa Sylvester Motadi
Affiliation not supplied

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