Civil Society Working Group on State Capture (CSWG)
The strategy of forming a public-facing group of CSOs to collaborate with the Zondo Commission and hold it accountable, as well as the deep academic, research, and litigation expertise of its organizational members, has resulted in a unique innovation for how non-State actors can expose and stop State capture.
The CSWG on State Capture in South Africa, founded in 2018, is a coalition of 23 civil society organizations (CSOs) that supports and strengthens the work of the Zondo Commission, the public inquiry that was initially created to investigate the Gupta-Zuma corruption scandal. The non-profit organizationOpen Secretsacts as the coalition’s secretariat.
We must remember that, in South Africa, the term political capture of the State — or simply State capture — is a more apt description than corporate capture, which, with the exception of the CSWG’s work, remains underexplored in that country.
According to its website, “The Working Group has achieved [oversight of the Zondo Commission] through various means using advocacy, engagement with the commission and by making over 15 evidence-based submissions to the commission. In addition to this, the Working Group successfully held the first People’s Hearing on State Capture which was created to openly engage with the public and hear evidence of how state capture has impacted on lives. The findings made by the panel presiding over the People’s hearing were shared with the commission in November 2019 and serves as a powerful reminder to all of what the human cost of state capture has and continues to be. In February 2020, the working group submitted an Agenda for Action: Joint submission with recommendations geared at strengthening the findings of the commission and notably calls on Judge Zondo to release an interim report given its extension-this will assist to bolster accountability. The Working Group continues to advocate for the implementation of its joint submission recommendations as well as maintain oversight over the commission, law enforcement agencies and the private sector ‘enablers of state capture’.”
One of the CSWG’s most notable contributions was organizing thePeople’s Hearing on State Capture,in October 2019, which featured public testimonies by witnesses and victims of State capture. It was chaired by the international criminal justice expert, Yasmin Sooka; gender and political activist, Nomboniso Gasa; and Xolobeni human rights defender, Nonhle Mbuthuma.
Its final recommendations identified five areas that require critical attention:
- Strengthening and building the capacity of criminal justice agencies;
- Holding enablers of State capture to account;
- Improving the financial accountability of political parties through amended regulations;
- Addressing the endemic nature of corruption in State-owned enterprises; and
- Addressing the impact of corruption and how it undermines the fundamental rights of vulnerable groups.
“The human cost of state capture and its contribution to deepening poverty and inequality provides the necessary urgency for the reforms set out in this submission. This is our agenda for action.”
Similarly, in “An Agenda for Action: A Joint Submission by the Civil Society Working Group on State Capture,” the CSWG outlined recommendations for the protection of the rights of vulnerable groups, including transparency and accountability in public procurement processes and whistleblower protections. Also, regardingState-owned enterprises(SOEs), it recommended revising the appointment and dismissal processes of company executives, transparency and accountability insofar as SOEs’ relationships with other parts of the State, political party accountability as well as regarding the role of Parliament, and interrogating the use of “emergency conditions” to initiate procurement deals.
Regarding corporate capture, “An Agenda for Action” recommended investigating all implicated parties, legal reforms — including addressing regulatory gaps for holding private actors accountable for unlawful conduct (both globally and in country) and South Africa’s deficient legal framework regarding public knowledge of beneficial ownership (there is no public registry of beneficial ownership) —, and reimbursing the public for siphoned funds.
The CSWG’s secretariat is hosted byOpen Secrets,a NGO that exposes and builds accountability for private sector economic crimes that have impacted human rights, through investigative research, advocacy, and the law. Notably, the organization has conducted significant research into the “enablers of State capture,” or the corporations, economic service providers, and other private interests that “supply” State capture. The report“The Enablers: The Bankers, Accountants and Lawyers that Cashed in on State Capture,”co-authored by Open Secrets and Shadow World Investigations, is a prime example of this work as it explores the key role played by “enablers.”