Thursday, March 22, 2007

Corruption is a crime against the poor

“Corruption is about the abuse of entrusted power and office for illegitimate, illegal private gain and is costing South Africa between R50 billion and R150 billion per year, money that could be used for housing, unemployment, and other social services.

Corruption undermines revenue collection and stimulates the underground economy. The more we allow this underground or informal economy to thrive, the more serious the consequences in terms of the amount of money the country is able to generate, which eventually gets redistributed or channelled into service delivery projects, into health, housing, education, pensions etc. Public resources are wasted through corruption.

In terms of social development, the Department of Social Development has been actively aggressive in terms of rooting out corruption within the department, after noticing that an estimated R1.4 billion was being lost to the department over a number of years. In spite of that amount being lost, the amount that was actually being spent on pensions, was increasing in the years. The country has to accommodate the amount of money that it is losing to corruption as well as trying to increase the provision and delivery of social security or social assistance to those most in need.

Corruption undermines efficiency and exacerbates poverty and inequality and encourages corrupt practice in the informal economy as well. One feels that you have no choice but to engage in corruption because you won’t get anywhere if you don’t, and the problem is once you start, you can’t stop.

The problem with corruption is that it impacts indirectly and directly on the poor. - Legalbrief

No comments: