OPENING STATEMENT BY MS GERALDINE J. FRASER-MOLEKETI MINISTER FOR THE PUBLIC SERVICE AND ADMINISTRATION SOUTH AFRICA ON THE OCCASION OF THE SIGNING CEREMONY OF THE UNITED NATIONS CONVENTION AGAINST CORRUPTION

 

Esteemed President, representatives of the Secretary-General of the UN, leaders of delegations and representatives of the peoples of the world, I am honored and privileged to bring you the warm greetings and convey the sincere sentiments of friendship of the people of South Africa. On behalf of my Government, I thank the Government of United States of Mexico for hosting this august ceremony. I also thank the United Nations and those who contributed to the work of the Ad Hoc Committee for their tireless efforts in producing this Convention. It is with great humility that I take up this opportunity to speak to you at this forum.

 

Corruption is a common feature in all political systems, despite the differences that may exist in their governing philosophies or their geography. Nation-states are increasingly aware that corruption presents a serious threat to their core principles and values, and hinders social and economic development. As a result, there has been a growing acceptance of the need to address the problem in a coordinated, comprehensive and sustainable way.

 

It is therefore exciting to note that Article 12 of the Convention addresses corruption that occurs in the private sector, as it is not just a matter in the public sector. The extent of corruption has become endemic in business. In world terms cases such as the Enron scandal represents but the tip of a large iceberg. Such cases are quintessential examples of the failure of political and economic oversight, which may have been deliberately weakened by collusion between audit firms, banks and the media. Many investors were defrauded as a result and workers, usually the most vulnerable, were deprived of their hard earned pension to the detriment of their families and dependents.

 

The UN Convention against Corruption that we have gathered to sign represents the global community's attempt to define and implement a broad strategy to combat corruption at the international level. By doing so, we are acknowledging that the problem is a serious one that needs to be prioritized by countries and their governments, and above all, the realization that its implementation to counteract needs the involvement of all sectors in society to work together.

 

It is an erroneous assumption that corruption is predominantly a third world problem. As we heard today, it is a global problem. We in developing countries understand the harsh reality and experience of corrupt multinationals that flaunt their "checkbooks" compromising our economies and business sector, the public sector and employees of these sectors, as well as political leaders. The Lesotho Highlands Water project is a case in point. Some may argue that this is one of the inevitable consequences of globalization, in this instance, a negative one.

 

In the recent past, in some of the member states of the UN, there have been instances of fiscal benefits as though this is an acceptable and normal business practice. What we should see as positive is the level of country representation, which reflects the seriousness that we as member states see this problem. It is clear to me that developing countries are serious about expressing their commitment to the implementation of this convention, and our colleague from Kenya has been quite bold in doing this. This manifests itself in the number of Ministers from the developing world who have made a concerted effort to be here.

 

The decision of the UN's General Assembly to establish a new Convention against Corruption shows that the international community is earnest about developing workable solutions and implementing them at the multilateral level. This is an exciting moment in the development of a more just and humane world order in that we now have the opportunity to explore, with the benefit of the broadest possible participation, joint efforts that will enable innovative solutions to emerge and address new problems such as the transfer of funds of illicit origin and their return.

 

This UN anti-corruption convention promises a major boost to the lonely and unrewarded efforts of developing nations to repatriate looted funds and in so doing, to curb widespread corruption. However, although the Convention is a step in the right direction for most African countries whose wealth or parts of our wealth fills the vaults of banks in several world cities while their citizens experience abject poverty, it will be of little value unless it is accepted by an overwhelming majority and effectively implemented over the years to come.

 

Chapter V of the Convention addresses asset recovery. Furthermore, it was identified by the General Assembly as a key component of the Convention. Maintaining a separate chapter on the question of asset recovery has political significance, in light of the fact that the developed and developing countries historically seemed to have diametrically opposed views on the matter. It is very gratifying that an approach has been reached that all signatories can support. I wish to congratulate those who have worked hard in terms of authorship of the Convention on their skill in finding a middle path that could effectively address this complex and challenging area.

 

Asset recovery was a major issue throughout the negotiations. One of the most important results of the sixth session was the adoption of a whole chapter requiring Member States to return those assets, obtained through bribery and embezzlement, to the country of origin. As a document that is at the cutting edge of anti-corruption initiatives, this represents a new fundamental principle in international treaties.

 

In many instances, the illicit proceeds of corruption represent a substantial loss of resources for the countries affected. Their diversion causes great political instability and undermines the economic and social development of the countries involved. By addressing money laundering and the return of illicit funds to the countries of origin, this situation can be contained and addressed.

 

This is also in line with one of the stated aims of the New Partnership for Africa's Development (NEPAD). In the chapter entitled "A New Global Partnership" it is agreed that members will set up coordinated mechanisms to combat corruption effectively, as well as commit themselves to returning the proceeds of such practices to Africa. The recovery of looted assets will make a critical difference to African societies and economies damaged by the corrupt activities that generated the assets.

 

Participating in the negotiation processes leading to the adoption of the Convention offered us the opportunity to give effect to our Government's expressed commitment to fight corruption. It was in November of 1998 at a Public Sector Anti-Corruption Conference in Cape Town that our then deputy President (now our President), Thabo Mbeki stated, "Zero tolerance will be offered to the parasites of our land who have scorned the public interest and that sought their own self enrichment at state expense" and that "it is incumbent on government unequivocally to affirm its seriousness and desire to stamp out corruption wherever it occurs."

 

I am very pleased to note that the Convention makes explicit provision for technical assistance, training and collection, exchange and analysis of information. Technical assistance must be made available, especially to developing and less developed countries, if we are to use this opportunity well. Open dialogue surrounding the concerns of developing countries must be encouraged, in particular through the mechanisms that deal with the implementation of the Convention.

 

Once adopted and ratified by States Parties, the UN Convention against Corruption will enhance co-operation among governments and help standardize the ways in which individual countries deal with corruption in their national legislation. The Convention will also pave the way for a more unified international response to corruption and related offences.

 

Our different corners of the earth orbit the sun and the moon at different times and in different seasons. Our spring is your autumn. Yet, we face the same immense challenges, which make our special and indeed strategic agreement more significant. The work that we will do to implement the provisions of this Convention would help to define us as true partners for all seasons.

 

On the domestic front, the requirements of our Constitution, a very comprehensive Public Service Anti-corruption Strategy, recommendations of a National Anti-Corruption Summit and various Government policy decisions have been translated into a number of anti-corruption measures. South Africa has adopted nine pieces of legislation, and my colleague, the Minister of Justice will deal with this at a side event tomorrow. Our new legislation has a bearing on fighting corruption, and the Prevention and Combat of Corrupt Activities Act includes matters of corruption, not only between business and government but also within the business sector itself. Some of its provisions include:

 

  • Criminalizing corrupt practices by South Africans on foreign soil;
  • Establishment of a blacklist of businesses and business people who have been found guilty of corruption;
  • Criminalization of acts of corruption by any member of a legislative authority, a judicial officer and members of the prosecuting authority;
  • Auctioneers and gamblers are also specifically targeted in the Act;
  • Property used in the commission of corrupt practices, or which is the proceeds of corruption may be seized by the State after judicial processes.

 

In closing, I make mention of the South African Development Community (SADC) Protocol against Corruption and the African Union Convention on Preventing and Combating Corruption. South Africa has ratified the former and is in the process of ratifying the latter. The provisions of these agreements are in line with those of the UN Convention against Corruption. It therefore becomes apparent that these frameworks reflect a real political will to change the continental approach to combating and preventing corruption and represents an exciting instance of regional and global synchronization.

 

In this spirit of global co-operation, it is equally important to share our experiences with other regions of the world about the initiatives being undertaken. Globalization has brought in its trail increased interdependence and a wide range of cross-border transactions, including criminal activities. The African initiatives have clearly struck a chord with the world and we are pleased to have an opportunity to participate in important global initiatives such as this Convention. We look forward to working together to implement the provisions of the Convention and to sharing lessons and experiences over the coming years that will help make us more effective.

 

On behalf of South Africa I am greatly honored to sign this Convention today. I thank you for your attention.