Africa News blog

African business, politics and lifestyle

from Global News Journal:

Fighting graft in Africa. Or not.

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 A little while back, we asked who is and isn’t fighting corruption effectively in Africa. This week, a number of examples bring us back to the subject.

 

In Tanzania, two former ministers have been charged with flouting procurement rules over the award of a tender for auditing gold mining back in 2002. The pair, who deny wrongdoing, served in the government of President Jakaya Kikwete’s predecessor Benjamin Mkapa. One of them also served under Kikwete himself.

 

Tanzania’s pledge to fight corruption is under close donor scrutiny and given the level of aid that Tanzania gets - more than one tenth of GDP by 2005 figures - it has little choice but to show willing. There have been doubts in the past, however, about how serious the government really was about going after the most senior and the best connected.

 

“By hauling the long-serving politicians to court, the Government has dispelled the rumour that some influential personalities are being shielded,” commented The Citizen newspaper of the charges against the former ministers.

Motlanthe greeted with relief, but South Africa’s problems are not over

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Kgalema Motlanthe takes the oath of office as South Africa’s president in Cape TownSouth Africans have widely greeted new President Kgalema Motlanthe, many of them with a sense of relief after the bitter and divisive power struggle between his ousted predecessor Thabo Mbeki and Jacob Zuma, leader of the ruling African National Congress.

Motlanthe, quiet spoken and dignified, struck exactly the note the public were looking for when he took office, sober but smiling gently – a huge contrast to the theatrical ebullience of Zuma and the aloof, intellectual style of Mbeki, who was seen as arrogant and out of touch with his people.

Can Africa beat corruption?

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cpi_2008_cmyk-africa.jpgTransparency International’s annual corruption report card is out and there is little surprise that many African countries are well towards the bottom of the Corruption Perceptions Index.

Somalia is at 180 out of 180. Six of the 10 worst offenders are African states. The best placed African country, Botswana, is at 36 (up from 38 last year).

How will Zuma’s resumed court battle affect South Africa?

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Jacob Zuma, the embattled leader of South Africa’s ruling African National Congress (ANC) launched a big fight for his political life on Aug. 4, asking the  Pietermaritzburg High Court to dismiss a graft case against him that could stop him becoming president next year. If his application is rejected, a full corruption trial could follow later this year and South Africa could head into a protracted period of tension and uncertainty. Read the following insights from leading analysts and have your say on how the legal process could affect South Africa:

gottschalk_resized1.jpegKeith Gottschalk, the University of the Western Cape (see full analysis)

“Jacob Zuma’s Zuma’s legal team has already proved, year after year that, if you have a bottomless pocket such as taxpayers, you can protract litigation, U.S.-style for the better part of a decade.”

Markets shrug off Zuma case

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Adenaan Hadien, Cadiz Holdings

adenaan_resized.JPGPietermaritzburg may well have been brought to a standstill with the resumed corruption case of Jacob Zuma in the High Court, but I suspect the same would not be true for local markets.  Certainly, if last week’s market performances are anything to go by, then reactions are likely to be muted.  Last Thursday, the Constitutional Court dismissed all four of Zuma’s appeals to prevent the state from using potentially damaging evidence against him in his corruption trial.  On Monday, Zuma’s legal team submitted an application for a permanent stay of prosecution, arguing that his constitutional rights have been violated.  This application and the round of appeals which may follow if, as is expected, it was rejected, would again delay things.
On the week, the local currency gained over 4% against South Africa’s trading partners’ currencies and bonds enjoyed gains last seen in the late-1990s.  Equities put in a more mixed performance on the week, due to the oscillating woes of resources against financials and industrials.  The performances of bonds were even more impressive, given the higher-than-expected consumer inflation figures released on Wednesday.  Granted, Thursday’s producer inflation numbers were more encouraging.

Holding pattern dawns in Zuma saga

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 Raenette TaljaardHelen Suzman Foundation
 

taljaard_resized.jpgANC President Jacob Zuma’s quest for a pre-trial stay of prosecution looks certain to  perpetuate uncertainty and an uncomfortable ongoing holding pattern and turmoil inherent in these dramatic events.

These compounded uncertainties do not only affect the South African economy with perceptions of political risk ratcheting up as key members of the new ANC leadership step up the rhetoric as Zuma goes to court but also creates tremors for core constitutional institutions and the bench in South Africa. After upholding the search and seizure warrants used against Zuma and rebuking his legal team for what amounts to delaying tactics, the Court also discouraged pre-trial legal wrangles of the kind that started in Pietermaritzburg.

No quick end seen in Zuma case

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Keith Gottschalk, The University of the Western Cape

gottschalk_resized.jpegJacob Zuma’s legal team has already proved, year after year that, if you have a bottomless pocket such as taxpayers, you can protract litigation, U.S.-style for the better part of a decade.

    The Presidency currently has a line item budget of 10 million rand per year for Zuma’s legal expenses. By South African standards, this is a record. It will certainly enable his legal team to appeal every point of procedure, then if necessary the verdict, and sentence. Each appeal starts with a delay of six or nine months on the court rolls, repeated as it winds it way upwards through a full bench of the High Court, followed by the Supreme Court of Appeal, followed by the Constitutional Court.

How should Nigeria’s windfall oil cash be managed?

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nigeria_poverty_hawker.jpgNigeria’s revenues from oil exports have reached unprecedented levels as global crude prices rally, yet the majority of its 140 million population remain mired in poverty. Africa’s top oil producer set up an “excess crude account” five years ago to save windfall oil earnings and try to help promote long-term economic stability.

But infighting among the three tiers of government — federal, state and local — on how the revenues should be shared out has seen them squandered.

What’s the verdict on Nigeria’s Yar’Adua?

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Nigerian President Umaru Yar’Adua took office a year ago promising to pursue free-market reforms launched by his predecessor, Olusegun Obasanjo, vowing zero tolerance for corruption and listing seven national priorities including improving power supply and reducing food insecurity.

A year on, his critics say economic reforms are grinding to a halt, his anti-corruption efforts are just window-dressing and his cabinet is largely a collection of ineffective bureaucrats who are but a shadow of an all-star cast in the former administration.

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