tag:theconversation.com,2011:/fr/topics/gupta-emails-39564/articlesGupta emails – The Conversation2018-08-16T13:51:41Ztag:theconversation.com,2011:article/1016972018-08-16T13:51:41Z2018-08-16T13:51:41ZCourt fixes some of the flaws in South Africa’s prosecuting authority<figure><img src="https://images.theconversation.com/files/232313/original/file-20180816-2912-2izisd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Former President Jacob Zuma: the Constitutional Court has ruled his appointment of the top prosecutor illegal.</span> <span class="attribution"><span class="source">EPA-EFE/Jackie Clausen</span></span></figcaption></figure><p>South Africa’s Constitutional Court has <a href="http://www.saflii.org/za/cases/ZACC/2018/23.html">ruled</a> that the removal of the previous National Director of Public Prosecutions, Mxolisi Nxasana, by former President Jacob Zuma, was unlawful and invalid. The appointment of his successor, Shaun Abrahams, was therefore also invalid. </p>
<p>The National Prosecuting Authority is the body responsible for prosecuting criminal offences in South Africa. The <a href="https://www.gov.za/documents/constitution/constitution-republic-south-africa-1996-1">Constitution</a> requires it to do so</p>
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<p>without fear, favour or prejudice.</p>
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<p>In its judgment the Court <a href="http://www.saflii.org/za/cases/ZACC/2018/23.html">explained</a> why the National Prosecuting Authority must be independent:</p>
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<p>The NPA plays a pivotal role in the administration of criminal justice. With a malleable, corrupt or dysfunctional prosecuting authority, many criminals – especially those holding positions of influence – will rarely, if ever, answer for their criminal deeds. </p>
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<p>The judges went on to say that, equally, functionaries within that prosecuting authority may be pressured into pursuing prosecutions “to advance a political agenda”. </p>
<p>The Court noted that the prosecuting authority has suffered ongoing instability over the years. Its capacity to fulfil its core functions is increasingly in doubt. This has been illustrated in a number of ways.</p>
<p>The first is that the authority has been abused by powerful office holders – by the president in this particular case. In addition, it has failed to act in cases where strong evidence has been in the public domain. The prime example relates to the <a href="http://www.gupta-leaks.com/">Gupta leaks</a>. Also, the prosecuting authority has pursued baseless cases against <a href="https://theconversation.com/charges-against-finance-minister-show-misuse-of-south-african-law-67177">opponents of people in power</a> and is losing its effectiveness in <a href="https://www.uwc.ac.za/News/Pages/The-NPA-What-does-the-future-hold.aspx">prosecuting non-political cases</a>.</p>
<p>The question now is: how much of this did Monday’s Constitutional Court judgment fix? It has removed some of the design flaws which allowed the authority to be abused and compromised. But it has merely opened the door towards other changes which may be necessary to ensure a functional, reliable and competent prosecutions body – changes which require the input of Parliament and broader society.</p>
<h2>Independence and competence</h2>
<p>An effective, accountable National Prosecuting Authority needs at least two things: structural independence and competent personnel with expertise and integrity.</p>
<p>Structural independence refers to the design of the institution, in particular whether the legislation that governs it is designed in a way that prevents those in power from forcing it to act in their own interests instead of in the interests of justice. </p>
<p>Two rulings from the Court’s recent judgment will improve the structural independence of the National Prosecuting Authority. First, it held that the clause allowing the President to extend the term of a National Director of Public Prosecutions was unconstitutional. </p>
<p>In addition, the court also declared Section 12(6) of the act invalid to the extent that it allows the President to suspend National Prosecuting Authority officials indefinitely and without pay. Instead, the Court limited the period of suspension to six months, and ordered that the suspended officials be paid during that period.</p>
<h2>Weaknesses remain</h2>
<p>But the judgment didn’t address other weaknesses. In particular, it left untouched the process of appointing its head. Under the National Prosecutions Act, the choice of the National Director of Public Prosecutions remains within the sole discretion of the President. The National Prosecutions Act does set out certain prerequisites, such as legal qualifications. The national head of prosecutions is also required to be a “fit and proper” person. </p>
<p>But the President is not required to consult with anybody on his choice or to justify his decision. </p>
<p>This explains why the removal of Abrahams hasn’t triggered widespread relief. Nobody knows – or has any say in – who will be appointed next.</p>
<p>Civil society has taken up this issue in the wake of a string of disastrous appointments. It’s suggesting that the head of the prosecutions authority should be chosen in an open, consultative manner. </p>
<p>The court provided no guidance on this. Nor did it tell South Africans what qualities the country’s chief prosecutor should have.</p>
<p>It consciously stopped short of commenting on Abrahams’s performance, noting merely that nothing had been brought to the court to suggest that he was not fit and proper to hold the post. </p>
<p>It was, nevertheless, not prepared to retain him in the position because he owed it to an abuse of power by Zuma. As the rule of law required a “cleansing” of the National Prosecuting Authority from all abuses of power, such a benefit could not be allowed to continue.</p>
<p>The only substantive guidance that the judgment offered on the qualities of the national director can be found in its response on what should happen to Nxasana. Although the judges were split on whether he should be allowed to return to his previous position, there was no dispute over the fact that he had allowed himself to be bought out of his office. In so doing he had acted in a way that was unworthy of the position he held.</p>
<h2>A clean page</h2>
<p>The court decision presents a clean page for the National Prosecuting Authority. It allows for the appointment of a new National Director of Public Prosecutions who might clean up the institution and return it to effective functioning. This, however, is far from a certainty.</p>
<p>The court’s judgment protects the independence of the new head of prosecutions and his or her deputies by removing some potential for fear, favour or prejudice. But it provides no guarantees that the new prosecutions boss and the National Prosecuting Authority will be impartial and competent and conduct themselves with integrity. </p>
<p>For that, further civil engagement and structural reform is needed.</p><img src="https://counter.theconversation.com/content/101697/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Cathleen Powell does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>An effective, accountable National Prosecutions Authority needs at least two things: structural independence and competent personnel with expertise and integrity.Cathleen Powell, Associate Professor in Public Law, University of Cape TownLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/889052017-12-17T10:19:21Z2017-12-17T10:19:21ZSteinhoff scandal points to major gaps in stopping unethical corporate behaviour<figure><img src="https://images.theconversation.com/files/199413/original/file-20171215-17848-1jrt0o0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p><em>A corporate scandal unfolding around one of the largest businesses coming out of South Africa, <a href="https://www.iol.co.za/business-report/steinhoff-shares-nosedive-after-ceo-markus-jooste-resigns-12286137">Steinhoff</a>, has become a major cause for concern. It threatens to wipe out hundreds of billions of rand invested on behalf of many people – rich as well as ordinary South Africans. Sibonelo Radebe asked Jannie Rossouw to interrogate the saga.</em></p>
<p><strong>What do you read from these allegations of corporate corruption?</strong></p>
<p>The Steinhoff scandal is disturbing because it points to a serious gap in the checks and balances in the investment management space. A scandal of this magnitude should not have occurred if the systems with their multiple layers were working.</p>
<p>It’s still early days but it seems as if a multiple of highly paid professional layers failed investors. This includes auditors, asset managers and non executive directors who in their different roles should ensure that the company’s accounts are as close to the truth as possible.</p>
<p>Steinhoff share price <a href="https://www.timeslive.co.za/sunday-times/business/2017-12-08-no-way-back-for-steinhoff-as-share-price-plunge-nears-90/">collapsed</a> by more than 90%, wiping off nearly €10 billion in shareholder value in about three days following the resignation of the company’s CEO, Markus Jooste, after news that German prosecutors were investigating the company for alleged massive <a href="https://www.fin24.com/Companies/Retail/german-prosecutors-still-probing-steinhoff-for-possible-accounts-fraud-20171207">accounting fraud</a>. Steinhoff is listed on both the Johannesburg Stock Exchange and Frankfurt Stock Exchange.</p>
<p>Steinhoff shares were the darling of most fund and asset managers in South Africa and across the globe. We must ask questions why these entities, which draw enormous fees, <a href="https://www.fin24.com/Opinion/magda-wierzycka-asks-hard-questions-about-steinhoff-and-asset-managers-20171207">failed to pick up</a> the alleged irregularities when it seems like they should have done so if they were doing their jobs properly.</p>
<p><strong>How big is the damage caused by this scandal?</strong></p>
<p>It’s still early days but some people are already tagging this scandal as the <a href="https://www.timeslive.co.za/sunday-times/business/2017-12-08-no-way-back-for-steinhoff-as-share-price-plunge-nears-90/">biggest corporate failure</a> in the history of the Johannesburg Stock Exchange. With more than 40 retailing brands in over 30 countries, Steinhoff was positioned as one of the largest companies by market capitalisation on the exchange. Its market value of close to R300 billion as recorded earlier this year placed it in the <a href="https://businesstech.co.za/news/business/164635/the-biggest-companies-in-south-africa-by-market-cap/">top 10</a>, flanked by other South African corporate giants like media giant Naspers, luxury products specialist Richemont, resources giant Anglo American, petrochemicals firm Sasol as well as two big banks Standard Bank and Firstrand.</p>
<p>If Steinhoff’s stock doesn’t recover the capital losses of share investors who bought at inflated prices will be massive. </p>
<p>Steinhoff started off as a South African based company but built itself into a global retail business with significant interests in western Europe. As a result it attracted <a href="https://www.moneyweb.co.za/news/economy/collateral-damage-who-owns-steinhoff/">prominent</a> investors. In South Africa, these include the Public Investment Corporation which invests on behalf of the Government Employees Pension Fund among other public entities. The Public Investment Corporation is reported to hold <a href="https://www.moneyweb.co.za/in-depth/investigations/pic-reacts-to-steinhoff-implosion/">10%</a> of Steinhoff’s total shares which means its losses reached more than R10 billion after the share price collapsed.</p>
<p>It is therefore of the utmost importance and in the interest of all involved – particularly direct and indirect investors – that the Steinhoff matter be brought to a swift closure. Swift closure should be followed by legal action against and punishment of all those implicated. </p>
<p><strong>How wide spread is such behaviour?</strong></p>
<p>Each time a major scandal surfaces, regulatory gaps are identified and new measures are put in place to plug the apparent holes. But the scandals keep coming.</p>
<p>South Africa has had its fair share of corporate scandals with the most recent being a list of companies linked to the Gupta family inspired<a href="https://www.fin24.com/Opinion/the-gupta-master-plan-meticulously-executed-state-capture-20170830"> state capture</a>. Big names like <a href="https://www.biznews.com/sa-investing/2017/12/06/naspers-links-gupta-corruption/">Naspers</a>, KPMG, McKinsey and SAP have been caught in the extensive web of corruption allegedly driven by the Guptas who have close ties to the country’s president. </p>
<p>Some <a href="https://www.facebook.com/search/top/?q=tim%20cohen%20steinhoff">commentators</a> have linked the Steinhoff saga to the broader ethical challenges facing South Africa. The integrity of some people in key positions of authority in both the public and private sectors is being questioned. This includes the country’s President Jacob Zuma who stands accused of <a href="https://www.news24.com/SouthAfrica/News/zuma-breached-oath-of-office-de-vos-20160405">violating</a> the oath of office. </p>
<p><strong>What must be done?</strong></p>
<p>Despite the best efforts, it’s impossible to regulate for integrity and ethical behaviour. The one effective way that behaviour can be changed is through legal process and by means of tough punishment.</p>
<p>At this point in time we are still unsure of the degree of corporate rot in Steinhoff. Numerous <a href="https://mg.co.za/article/2017-12-07-steinhoff-the-largest-corporate-failure-on-the-jse">allegations</a> have been made, but the world now waits for the company’s delayed audit report to see the full extent of possible corporate fraud. Steinhoff must act swiftly in informing shareholders and other stakeholders about the true financial health of the company.</p>
<p>The Board of directors of Steinhoff is responsible for the financial health and the financial reporting of the company. The problems at the company resulting in the serious decline in the share price, raise the question whether the Board members should continue to hold office. Under the watch of the current Board a massive destruction in shareholder value took place. </p>
<p>No Board replacing the current one can do worse, as there is simply hardly any shareholder value left to destroy. Will the current Board do the honourable thing and step aside?</p>
<p>If fraud is proven, I want to see Steinhoff executives serve jail terms. They have caused immeasurable harm to many people. This is the only way in which unethical and fraudulent behaviour can be out-rooted and integrity restored.</p>
<p>From a proper investigation of the affairs of Steinhoff, possible regulatory gaps should also be identified and eradicated. Nevertheless, no structure of regulation and supervision can replace the single most important requirement for successful business conduct: Ethical behaviour. In South Africa we need ethical behaviour at all levels, namely the government, businesses and civil society.</p>
<p>The board of directors of Steinhoff is responsible for the financial health and the financial reporting of the company. The problems at the company resulting in the serious decline in the share price, raise the question whether the board members should continue to hold office. Under the watch of the current Board a massive destruction in shareholder value took place.
No board replacing the current one can do worse, as there is simply hardly any shareholder value left to destroy. Will the current board do the honourable thing and step aside?</p><img src="https://counter.theconversation.com/content/88905/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jannie Rossouw has a NRF research rating and receives financial assistance for research from the NRF. He owns shares in Steinhoff. </span></em></p>A suit of highly paid professional services seem to have failed investors in the unfolding Steinhoff corporate scandal.Jannie Rossouw, Head of School of Economic & Business Sciences, University of the WitwatersrandLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/858682017-10-18T15:04:49Z2017-10-18T15:04:49ZWhy media freedom remains fragile in South Africa<figure><img src="https://images.theconversation.com/files/190831/original/file-20171018-32345-18kfusq.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Demonstrators protest against the decision by the South African Broadcasting Corporation to stop airing violent protest scenes.
</span> <span class="attribution"><span class="source">Reuters/Mike Hutchings</span></span></figcaption></figure><p>Four decades after the <a href="http://www.apartheidmuseum.org/sites/default/files/files/BIKO%203b.pdf">Black Wednesday</a> crackdown on the media and the black consciousness movement, South Africa is a different country. Freedom of expression is guaranteed in the <a href="https://www.gov.za/DOCUMENTS/CONSTITUTION/constitution-republic-south-africa-1996-1">constitution</a> and a <a href="http://www.constitutionalcourt.org.za/site/constitution/english-web/ch9.html">slew of institutions</a> and laws support the guarantee. At the same time, powerful groups continue to seek ways to limit and undermine journalism.</p>
<p>On October 19, 1977, two South African newspapers - World and Weekend World - and a church journal - Pro Veritate - <a href="https://www.iol.co.za/sundayindependent/remembering-qobozas-sense-of-duty-1594527#.ViI2CX4rLnA">were closed</a>, journalists were banned and detained and some 18 organisations of the black consciousness movement were banned. Since then, the country’s journalists have marked the day as Media Freedom Day.</p>
<p>The 1977 crackdown went further than even the apartheid cabinet of the time had decided: cabinet minutes from the day before, laboriously written in longhand in leather-covered volumes held in the national archives, record the decision that the World newspaper “be suspended for a week” and that the editor Percy Qoboza and others be detained. The Weekend World is not mentioned. </p>
<p>In fact, both papers were banned permanently. There are other differences: the list of organisations actually closed is much longer than was decided by <a href="http://www.sahistory.org.za/dated-event/bj-vorster-steps-down-prime-minster">Prime Minister BJ Vorster’s</a> cabinet.</p>
<p>One can speculate about the reasons for the difference between decision and implementation – perhaps the powerful apartheid police simply thought they knew better than their political bosses.</p>
<p>Black Wednesday remains a particularly brutal act of repression in a long line of attempts to silence critical media voices. There have been many victims, before and since. </p>
<p>What’s clear is that the battle for media freedom in South Africa isn’t over. Attacks on journalists continue – whether in the form of physical intimidation or through the threat of new legal measures that seek to restrict the media’s ability to do its job. And the online world has opened up new frontiers that need defending. </p>
<h2>Targeting journalists</h2>
<p>Journalism is under attack from a number of quarters.</p>
<p>A number of laws and bills contain problematical provisions. The board of the World Association of Newspapers and News Publishers, who met in Durban in June, <a href="https://www.timeslive.co.za/news/south-africa/2017-06-12-worlds-press-calls-for-renewed-solidarity-in-the-wake-of-threats-to-independent-free-media-in-sa/">highlighted concerns</a> with bills on cybersecurity, hate crimes and films and publications as infringing on media freedom. </p>
<p>Then there’s the Protection of State Information Bill (generally called the<br>
<a href="https://www.hrw.org/news/2013/04/29/south-africa-secrecy-bill-improved-still-flawed">Secrecy Bill</a>, whose problematical provisions include an overly broad definition of the national interest and which would severely restrict the freedom to report. The bill was passed in 2013 but is still awaiting signature on President Jacob Zuma’s desk. </p>
<p>There also appears to be a concerted move to reopen the debate around a <a href="http://www.news24.com/SouthAfrica/News/contentious-media-tribunal-still-on-the-cards-20170708">Media Appeals Tribunal</a> through a parliamentary inquiry, which would subject the media to regulation by Parliament. </p>
<p>Also, this year has seen attempts to intimidate and threaten journalists, most notably by Black First Land First <a href="http://ewn.co.za/2017/07/28/police-criticised-for-failing-to-stop-blf-harassment">(BLF)</a> and other proxies in what has become known as the <a href="http://pari.org.za/betrayal-promise-report/">state capture project</a>. This has involved attempts by powerful individuals and groups to shape South Africa’s political and economic landscape through corrupt relationships and deals to benefit their own private interests. After BLF’s protest at the home of former Business Day editor Peter Bruce in June turned violent, the South African National Editors Forum obtained a <a href="http://ewn.co.za/2017/08/09/all-journalists-now-protected-against-blf-harassment">court interdict</a> against the organisation and its leader Andile Mngxitama.
As the forum’s chairperson Mahlatse Gallens pointed out in her response to the court ruling:</p>
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<p>They have specifically targeted journalists that have done in-depth reporting on allegations of corruption and state capture. We will not be deterred.</p>
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<p>These kinds of attacks attest to the strength and importance of journalism in present-day South Africa. From exposes on the <a href="https://mg.co.za/article/2009-12-04-zumas-r65m-nkandla-splurge">Nkandla scandal</a> to the <a href="http://www.news24.com/SouthAfrica/News/gupta-leakscom-everything-you-ever-need-to-know-about-guptaleaks-in-one-place-20170721">Gupta emails</a>, which detailed the extent of <a href="http://www.news24.com/SouthAfrica/News/download-the-full-state-of-capture-pdf-20161102">state capture</a>, journalistic investigations have set the public agenda. Government ministers have been forced to account and <a href="https://www.theguardian.com/media/2017/sep/07/bell-pottinger-could-go-under-within-days-sources-claim">international corporations</a> have been ruined following exposure of their complicity. </p>
<p>When around 1000 of the world’s investigative journalists gather for the <a href="https://www.wits.ac.za/news/latest-news/general-news/2017/2017-10/global-investigative-journalism-conference-programme-released.html">Global Investigative Journalism Conference</a> at Wits University in a few weeks – the first time the event is held in Africa - the South African experience will be of considerable interest.</p>
<h2>Media freedom in a changed era</h2>
<p>Attacks and threats to media freedom are a mark of the importance of journalism, but the effects are felt by the citizenry at large. <a href="https://www.ivir.nl/publicaties/download/Current_threats_journalism.pdf">As the Council of Europe</a> pointed out in a paper on protecting journalists, interference with media freedom </p>
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<p>is simultaneously an interference with the public’s right to receive information or ideas.</p>
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<p>The constitutionally guaranteed right to free expression is mainly about citizens’ right to be informed; journalists hold it in trust for the broader public. Journalism and its organisations have not always been successful in making that point clear.</p>
<p>Seen in that light, the media freedom discussion needs to broaden out and take into account developments which do not amount to direct attempts to harass journalists, but damage their ability to do this important work in other ways.</p>
<p>The long-standing business model of journalistic media is in terminal decline as audiences move to online and social media. Legacy media companies are under <a href="http://www.journalism.co.za/wp-content/uploads/2014/10/State-of-the-newsroom-2014.pdf">intense financial pressure</a> and staffing levels in newsrooms keep dropping. Investment in the time and effort to do journalism of quality is way down.</p>
<p>At the same time, the growth of online platforms has led to an explosion of available information. In many senses, this has been positive, but it has also opened the door to abuse. The campaign in support of state capture involved the extensive use of social media for <a href="https://www.timeslive.co.za/news/south-africa/2017-09-04-how-the-gupta-campaign-weaponised-social-media/">cyber-bullying </a> and to create the illusion of a groundswell of opinion that does not exist.</p>
<p>The use of information as a weapon is not new - propaganda is as old as the hills, and South African political and factional campaigns have often made use of leaks as a form of warfare. But we seem to be entering a new phase where it becomes harder and harder to distinguish real exposes from the false kind. Some journalists and media outlets, in some cases liberally supported by public funding, are allowing themselves to be used for factional ends.</p>
<p>Trust is journalism’s most valuable asset. In an era of fake news, that trust is harmed not only by what the media themselves may do, but by what is done by pedlars of misinformation, who are often hard to distinguish from professional journalists.</p>
<p>A loss of trust may in the long run cause more harm to journalism than the repressive tactics of past decades.</p><img src="https://counter.theconversation.com/content/85868/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Franz Krüger is head of the journalism programme at Wits University. He is a member of the SA National Editors Forum. </span></em></p>As South Africa marks Media Freedom Day, it’s clear that its battle isn’t over. Attacks on journalists continue –through physical intimidation and there’s also the threat of new laws.Franz Krüger, Adjunct Professor of Journalism and Director of the Wits Radio Academy, University of the WitwatersrandLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/819052017-08-02T15:45:52Z2017-08-02T15:45:52ZSouth African business must own up to its part in the corruption scandals<figure><img src="https://images.theconversation.com/files/180705/original/file-20170802-6912-ryzxrt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p><em>South Africa is reeling from a string of scandals involving state owned enterprises and the Guptas, a family with close ties to President Jacob Zuma. A trove of recently <a href="http://www.huffingtonpost.co.za/2017/06/01/the-new-gupta-emails-are-a-lot-heres-what-they-say-in-5-quick_a_22120706/">leaked Gupta emails</a> exposed the involvement of prominent businesses in the extensive corruption networks. Sibonelo Radebe asked Mills Soko to explain the implications of the scandals.</em></p>
<p><strong>What do you make of the situation?</strong></p>
<p>If nothing else, the Gupta leaks have shown us how perilously close South Africa is to losing everything so many people fought so hard for. Not only does corruption divert capital allocated for public services away from the poor, it hollows out important state institutions and, ultimately, frays the social and economic fabric of the country. It threatens the hard won democracy and political stability.</p>
<p>The ongoing revelations around state capture and patronage are giving South Africans an unprecedented and frightening glimpse into the machinery of corruption. The most unnerving element of the emails is how many of the transactions appear blatant and almost casual. The absolute cynicism and lack of ethics revealed in this correspondence is breath taking.</p>
<p>What we do with this knowledge as a country is going to count for everything. As a business community we can look away and call these tales of corruption isolated incidents – or we can step up to ensure that our organisations hold themselves to a higher standard. Most critically the law must take its course.</p>
<p><strong>What does it tell us about the role of business?</strong></p>
<p>The emails remind us that in any corrupt interaction it takes two to tango. And while governments and public money are so often at the centre, the enablers of corruption are not in government but in the private sector. </p>
<p>With the Gupta’s at the centre of the rot, <a href="http://m.news24.com/news24/SouthAfrica/News/guptaleaks-kickbacks-for-transnet-crane-contracts-20170717">prominent international companies</a> like accounting firm KPMG, consulting giant McKinsey, ICT player SAP, engineering company Liebherr and capital equipment manufacturer Shanghai Zhenhua Heavy Industries have been implicated in the mounting scandal. It’s worrying to see that companies of such calibre can be involved in such nefarious activity.</p>
<p>Corruption is, of course, not a new phenomenon – and nor is it unique to South Africa, as the <a href="https://www.transparency.org/news/feature/corruption_perceptions_index_2016">Global Corruption Index</a> shows. But certainly, the scale of what is going on in South Africa right now is unprecedented. </p>
<p><strong>How do you rate the responses by the implicated businesses?</strong> </p>
<p>Companies have scrambled to distance themselves from the reputational firestorm that the Gupta leaks have unleashed. McKinsey acted promptly to <a href="https://www.businesslive.co.za/bd/companies/2017-07-09-now-mckinsey-sa-director-vikas-sagar-has-been-suspended-over-the-gupta-scandal/">suspend</a> Vikas Sagar, a director in its South African office, to allow an internal investigation to proceed. For its part SAP, which originally denied the allegations, has similarly suspended South African staff while launching a full anti-corruption <a href="http://www.reuters.com/article/safrica-eskom-idUSL5N1KA2KE">investigation</a> , which is to be carried out by a multinational law firm and overseen by its executive board member Adaire Fox-Martin.</p>
<p>It’s convenient to blame these incidents on bad apples. But this doesn’t get below the surface of what is really going on. The scale of the corruption and the apparent ease with which it has been unfolding speaks to the fact that something is very wrong with the system. And it highlights an utter lack of business ethics and governance failures. This isn’t something the country can afford. </p>
<p><strong>What should be done to root out the corruption?</strong></p>
<p>While all of this may seem overwhelming, what is unfolding also presents the business community with an opportunity for some introspection. Calls have been made for greater purpose and responsibility on the part of South African leaders.</p>
<p>But how can we make sure these fine words and intentions are internalised? How do we make sure as a country that our business as well as our state institutions are committed to not allowing this to happen ever again?</p>
<p>Educational institutions, business schools in particular, are positioned as a first-line duty in making sure that graduates are equipped to recognise and reject corruption in any form. The country needs business leaders who are committed to building sustainable and profitable businesses but who are also mindful of their social and ethical obligations.</p>
<p>Citizens as workers and consumers also have a significant role to play. As individuals working in companies and purchasing goods and services from companies, they can condemn unethical behaviour from companies. This was partly reflected in how the general public put pressure on <a href="https://www.timeslive.co.za/news/world/2017-07-20-watch-the-bell-pottinger-gupta-saga-captures-attention-of-world-media/">Bell Pottinger</a> the UK based public relations firm which did work for the Gupta’s. </p>
<p>By <a href="https://www.theguardian.com/uk-news/2017/jul/10/bell-pottinger-pr-firm-apologizes-south-africa-campaign">rounding on Bell Pottinger</a>, effectively causing the company to lock its Twitter account and issue a formal and unprecedented apology to the country (even though they also blamed the fiasco on bad apples rather than the system), South Africans have shown the power they can wield when united against wrongdoing.</p>
<p>But the country needs to go further. While government and business have not enjoyed the best relationship in recent times, they need to bury the hatchet and come together to fix the inequalities in this country. Deep divisions have laid South Africa open to the kind of racist exploitation that Bell Pottinger unleashed. </p>
<p>Until the country rights this situation, it will continue to remain vulnerable to these kinds of nefarious influences. South Africa needs to be united in the spirit of building a country that works for everyone – not just a select few. Things are broken, yes – but it’s not impossible to repair the damage.</p><img src="https://counter.theconversation.com/content/81905/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Mills Soko does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The Gupta email leaks have exposed the involvement of some big private corporations. in the unfolding corruption scandal thus challenging the private sector to do some introspection.Mills Soko, Associate Professor, Graduate School of Business, University of Cape TownLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/792112017-06-11T17:42:56Z2017-06-11T17:42:56ZEthical journalism: what to do - and not to do - with leaked emails<figure><img src="https://images.theconversation.com/files/173278/original/file-20170611-21746-18a1z21.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Leaked information is the life blood of investigative journalists. But there are a few golden rules they should follow when reporting on it.</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p><em>South Africans have been gripped by stories gleaned from <a href="https://www.dailymaverick.co.za/article/2017-06-01-editorial-the-guptaleaks-revealed/#.WT05zjOB2i4">the biggest data dump</a> in the country – between 100,000 and 200,000 emails leaked by an anonymous source to journalists. The emails, locally referred to as the “<a href="http://citizen.co.za/news/news-national/1537215/cabinet-expresses-concern-about-gupta-leaks/">Gupta leaks</a>”, reveal how <a href="http://citizen.co.za/news/news-national/1334530/who-are-the-guptas-details-according-to-madonsela/">the Gupta family</a> has done business in the country, as well as their engagements with the government and politicians. The family, and its associates, are <a href="http://www.bbc.com/news/world-africa-22513410">accused of buying favour</a>, as well as state tenders and deals, through their close association with President Jacob Zuma, members of his family and politicians loyal to him. The Conversation’s Ozayr Patel asked Professor Franz Krüger how journalists should respond to leaks of this kind.</em></p>
<p><strong>What are the ethical questions journalists should ask themselves when reporting on leaked information, particularly bulk leaks such as these emails?</strong></p>
<p>It is important for journalists to satisfy themselves that the leaked information is real, and to seek as much corroboration as possible.</p>
<p>The second question that needs consideration is whether and how the leak furthers a political or other agenda. We have been very accustomed in South Africa to see political warfare by leak, and journalists should not allow themselves to be misused in factional battles. But this is a secondary question to the one about whether the information is true and in the public interest. If the leaked information stands up as accurate, and if it is important for the general public to know, it would be reasonable to publish even if it furthers somebody’s interest. </p>
<p>In a situation of that kind, though, it is important for the political background to the leaks to be contextualised.</p>
<p>Another issue that arises from the sheer volume of material that seems to have been leaked is how to pace the release of the various stories. In this case, the material has generated a lot of different kind of revelations, which have been published over time. Some of these have been stronger than others.</p>
<p><strong>What are the four things every journalist should do when covering leaks of this kind?</strong></p>
<p>Check the information, consider alternative explanations, consider the political and factional context of the leaks taking place, allow the people implicated a full and proper chance to respond.</p>
<p><strong>Is the reporting of the leaked emails being handled in an ethical way</strong></p>
<p>In general, I think it has been. I was a bit concerned that in one case, there seems to have been a policy not to ask for a response, and I don’t think that is appropriate. The country’s press code does allow that in some cases, but they are exceptional, and I don’t think in this case the danger of publication being prevented is strong enough. </p>
<p>I also feel that some of the stories published were overplayed – more was made of them than seemed really justified. Also, in some cases too much may have been read into the raw information available. It’s sometimes easy to read things into exchanges that may in fact be quite innocent, particularly where they seem to confirm a narrative that is increasingly accepted as common cause.</p>
<p>In general, though, the reports have given the public a sense of the detailed texture of state capture which was not available before.</p>
<p><strong>What are the dangers of “leak fatigue”?</strong></p>
<p>There is a danger with any particular kind of reporting that audiences will get tired of it, and will switch off. It’s well known that there is “confession fatigue” where the public gets tired of stories of suffering. </p>
<p>Journalists need to be alive to that possibility, and avoid getting too taken up by their own interests and passions to notice that ordinary audiences sometimes have different priorities. The risk is simply that audiences will lose interest, particularly if a perception develops that a story is being milked beyond what is relevant or interesting. The stories chosen need to be significant.</p>
<p><strong>What are the dangers that journalists will lose their credibility?</strong></p>
<p>Credibility is very important to journalism. The central reason to worry about ethics in this – and in other cases – is to safeguard credibility. Despite some weaknesses, I have not picked up a sense in the public discussion that, in general, these stories are sensationalised and that therefore journalists involved should worry about their credibility.</p><img src="https://counter.theconversation.com/content/79211/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Franz Kruger is a member of the South African Press Appeals Panel.</span></em></p>When given leaked information journalists should check the information, consider alternative explanations, consider the political context and allow the people implicated a proper chance to respond.Franz Krüger, Adjunct Professor of Journalism and Director of the Wits Radio Academy, University of the WitwatersrandLicensed as Creative Commons – attribution, no derivatives.