South Africa bribery scandal caught on camera, in warning to businesses on compliance

South African newspaper The Daily Maverick released video at the weekend showing Tebogo Malaka, the suspended chief executive of South Africa’s Independent Development Trust, purportedly offering one of the title’s journalists R60,000 (US$3,367) to stop covering stories around her involvement in the foiled tender concerning a multi-million rand project to install oxygen plants, and controversial property investments she had made.

Edward James of Pinsent Masons, an expert in corporate crime risk, said that the case was a stark reminder to businesses of the corruption risk they face.

He said: “In typical corruption cases, the private party seeks to bribe the public official, but here the roles seem to have been reversed. For many companies and employees, corruption and other compliance training has become a tick-box exercise that does little to equip employees on how to actually respond if faced with a request for a bribe or an envelope full of cash being placed on the table.”

“Corruption remains endemic around the world and if companies want to ensure they don't get into trouble, they need to get back to basics and stop ticking boxes,” James added. 

 “This incident highlights the need for expert training on real-life risks for employees who are potentially going to face situations where bribe solicitation or offers is an acute risk.”

“Companies should apply a common-sense approach to identify which employees are at real risk. They need to go beyond the textbooks and critically consider their particular businesses. While there is a time and place for online generic training, these employees should be properly equipped with bespoke training that helps them know how they should respond if and when faced with the kind of uncomfortable situation that appears to have been caught on camera here,” he said.

Efforts to crack down on corruption and bribery in South Africa have stumbled in recent months, with the now former Chief Justice Raymond Zondo criticising the government for a lack of progress in responding the recommendations of the Zondo Commission and a failure to act against persons implicated.

Vishana Mangalparsad, also of Pinsent Masons, said the IDT case showed the value in having independent corporate investigators look into allegations of corruption.

“Whilst this case involved a journalist, internal investigators may also face stark pressures,” Mangalparsad said.

“The pressures may not be as obvious as an envelope of cash on the table but may come in similarly unsubtle forms - for example, an investigator tasked with investigating the alleged conflicts or harassment of a senior executive may be threatened or pressured by the executive to drop issues and to avoid difficult discussions. Companies should ensure that their internal investigations functions are given the independence they need and, where the stakes are particularly high, consider using external independent experts,” she said.