Individual Corruption

Petty corruption is a significant problem in South Africa's civil service. According to Transparency International's Global Corruption Barometer 2010, registry and permit services are revealed as areas where a substantial amount of citizens need to pay bribes. For example, the Department of Home Affairs, which is tasked to issue identity documents, passports, and residence and work permits, is widely considered the most corrupt public institution, according to Freedom House 2010. This has led the UK government, starting from the beginning of 2009, to require South African passport holders to obtain a visa prior to entering the country, as reported in a May 2009 article by Mail & Guardian.

The process of getting a driver’s licence in South Africa is plagued by corruption. According to a February 2010 article by Mail & Guardian, the Department of Roads and Transport in Gauteng receives an average of 500,000 calls per month from applicants who seek to schedule a licence test. However, the department can only help 66,000 calls per month. Therefore, this has led to the emergence of a reported ‘efficiency fee’, meaning that an illegal fee is paid by applicants to secure a date for a licence test and a guaranteed pass.

Business Corruption

Although the regulatory environment in South Africa is continuously being improved, some public services are still characterised by high levels of red tape - much to the disadvantage of companies. According to Global Integrity 2010, the Businesses Act of 1991 assigns the role of granting business licences to local governments, resulting in inconsistent interpretation and implementation of business licensing regulations. Many companies experience corruption when dealing with the Department of Home Affairs and its local units, which are in charge of issuing various licences and permits. The procedures for obtaining work permits and business licences are pointed to as actions likely to involve bribery. Furthermore, Global Integrity 2010 reports that government inspectors sometimes accept bribes from companies in exchange for ignoring non-compliance with health, safety and other licence regulations. However, statistical figures from the World Bank & IFC Enterprise Surveys 2007 show that the corruption rate in relation to getting business permits and licences, and to obtaining utility services is low compared to the regional average.

Political Corruption

According to a 2007 article by The Time, the National Roads Agency has been accused of manipulating a ZAR multi-billion highway project between Durban and East London in 2006. The agency allegedly manipulated the bidding process to disguise conflicts of interest and operated with environmental consultants who have been shown to lack political independence.

In preparation for the 2010 FIFA World Cup which South Africa hosted, large scale infrastructure and construction projects, such as the building of stadiums and related facilities, were built. Some large scale corruption scandals related to these projects were covered by the media. For example, according to a January 2009 article by The Times, in the beginning of 2009, a politician was shot dead by masked men, allegedly because he 'blew the whistle' about corruption in the building of the Mbombela Stadium.

Frequency

The World Bank & IFC: Doing Business 2012:
Dealing with a construction permit requires a company to go through 13 procedures and spend 127 days to obtain the required licences and permits, incurring an average cost of 21.2% of per capita income.

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give government administrative requirements (permits, regulations, reporting) in South Africa a score of 2.7 on a 7-point scale (1 being 'extremely burdensome' and 7 'not burdensome at all').

Transparency International: Global Corruption Barometer 2010:
- 12.7% of households who had contact with medical services in 2009 report to have paid a bribe.

- 39.3% of households who had contact with registery and permit services in 2009 report to have paid a bribe.

- 14.7% of households who had contact with utilities services in 2009 report to have paid a bribe.

- 7.8% of households who had contact with the education system in 2009 report to have paid a bribe.

Transparency International: Bribe Payers Index 2008:
- Business executives give the permit and registry services a score of 3.5 on a 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt').

Afrobarometer: Summary of Results South Africa 2008:
- 33% of respondents in this public opinion survey who applied for an official document or a permit in 2007 did not pay any bribe to obtain it, while 56% stated that they have never paid a bribe to obtain it.

- 32% of respondents who applied for public utilities, such as water or sanitation in 2007 did not pay any bribe to obtain it, while 59% stated that they have never paid a bribe to obtain utility services.

The World Bank & IFC: Enterprise Surveys 2007:
-3% of the interviewed companies identify business licensing and permits as a major constraint to doing business in South Africa.

- 6.7% of the surveyed companies expect to pay a bribe to get an electrical connection.

- 4.6% companies expect to give gifts to get a phone connection.

- 4% companies expect to give gifts to get a water connection.

- No companies expect to give gifts in order to obtain an operating licence or to get a construction permit.