Abstract
State capture became topical in South Africa in March 2016 following the dismissal of the then Minister of Finance, Nhlanhla Nene, on 09 December 2015. ‘Nenegate’ revealed poor understanding of state capture among politicians and the general public. The literature indicates that state capture lacks analytical clarity as there is no clear demarcation between legitimate political lobbying and state capture created by corruption. The research question addressed in this article is: What is state capture and how is it manifested in South Africa? Firstly, it systematically unpacks the phenomenon as a type of business–state relationship distinct from influence, corruption and lobbying and outlines its types, features and essence. Secondly, the article explores state capture in contemporary South Africa. Methodology-wise, a combination of literature study and current research reports is used to illuminate the phenomenon and its manifestation. The article contributes to existing knowledge by not only clarifying a concept conflated with corruption but also analysing the manifestations of state capture in South Africa.
Highlights
The phenomenon of state capture was identified at the dawn of the new millennium (Hellman, Jones & Kaufmann 2000a) as an aberration in governance, but gained topicality in South African political discourse in March 2016
Pravin Gordhan and Mcebisi Jonas were removed as Minister of Finance and Deputy Minister in a major cabinet reshuffle on 30 April 2017 and replaced by Malusi Gigaba and Sfiso Buthelezi, respectively
The ‘Nenegate’ furore of March 2016 revealed a lack of understanding of state capture among politicians and the general public, with one politician stating that because the state consists of three organs, state capture cannot occur unless all three are captured
Summary
The phenomenon of state capture was identified at the dawn of the new millennium (Hellman, Jones & Kaufmann 2000a) as an aberration in governance, but gained topicality in South African political discourse in March 2016. Deputy Minister of Finance, Mcebisi Jonas, said the Gupta brothers, who are friends of the President and business partners of his son, had allegedly offered him the position of Minister of Finance before the incumbent, Nhlanhla Nene, was dismissed on 09 December 2015 and replaced by Des van Rooyen. Part two discusses state capture in South Africa by highlighting key observations made on investigative issues in the Public Protector’s ‘State of Capture Report’, discussing critical points in the ‘State Capacity Research Project Report’, including captor actors, how they are organised and their various roles in the patronage network, methods or modalities of capture and areas or targets of capture. The article highlights issues in the South African Council of Churches’ (SACC’s) ‘Unburdening Panel Process Report’
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