South Africa has made progress in detecting and investigating foreign bribery cases, despite an undermining of the rule of law and weakening of its law enforcement institutions during a period of state capture, according to a new evaluation by the OECD Working Group on Bribery.
The Phase 4 evaluation of South Africa’s implementation of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions shows that the country has started cooperating with other Parties to the OECD Anti-Bribery Convention to sanction companies for transnational corruption tied to state capture. The review suggests that the resilience and commitment of individual government and law enforcement officials, working in a multi-agency approach, has contributed to this progress. To consolidate what it has achieved and avoid a repetition of the past, South Africa should now enhance its legal framework and institutional capacity to combat foreign bribery.
South Africa has opened investigations into 18 new foreign bribery allegations since its Phase 3 evaluation in 2014. Authorities have investigated foreign bribery allegations more proactively, using more complex investigative techniques and seeking mutual legal assistance from other countries. In 2019, South Africa started its first foreign bribery court proceedings but still faces enforcement challenges in its 14 ongoing investigations. Authorities need to expand the range of sources used to detect foreign bribery, find better ways to obtain evidence from other countries in the region, and secure sanctions against both companies and individuals.
In its Phase 4 report, the Working Group welcomes reforms to South Africa’s whistleblower legislation. It finds that the development of an innovative non-trial resolution mechanism could, with further clarifications, facilitate foreign bribery enforcement. South Africa has also developed public-private partnerships to address capacity issues within law enforcement.
To improve effectiveness in preventing, detecting and enforcing the foreign bribery offence, the Working Group recommends that South Africa:
- Hold companies and individuals liable for foreign bribery and related offences
- Enhance its efforts to promptly detect foreign bribery allegations
- Better protect whistleblowers who report foreign bribery from retaliation, including financial, professional, and physical harms
- Ensure more transparent appointments for investigators and prosecutors to prevent the risk of undue influence in foreign bribery cases
- Increase operational and financial autonomy for the investigators and prosecutors
- Strengthen its framework for sanctioning foreign bribery with non-trial resolutions
- Ensure that it has the appropriate framework for sanctioning companies for foreign bribery
The OECD Working Group on Bribery in International Business Transactions comprises the 46 Parties to the Convention, including South Africa. The Group oversees the implementation of the Convention by its member states. Established in 1994, the Working Group is responsible for monitoring the implementation and enforcement of the OECD Anti-Bribery Convention, the 2021 Recommendation on Further Combating Bribery of Foreign Bribery in International Business Transactions and related instruments. A peer-review monitoring system is conducted in successive phases.
South Africa is slated to report to the Working Group in June 2027 on implementation of recommendations and continuing enforcement efforts.
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For more information on South Africa’s efforts to fight corruption, please visit this web page.
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