Organised crime and corruption in South Africa reinforce the systems that undermine state capacity, erode public trust, and hollow out service delivery.

As speakers at a recent Institute for Security Studies seminar on Preventing Corruption and Organised Crime: Upstreaming Interventions argued: corruption is a form of organised crime that destabilises institutions, diverts resources from essential services, and weakens the rule of law. 

Moderated by Ferial Haffajee, Associate Editor at Daily Maverick, speakers included Gareth Newham, Special Advisor, Acting Minister of Police; Andy Mothibi, National Director of Public Prosecutions, National Prosecuting Authority; Pranesh Maharaj, Chief Programme Portfolio Officer, Special Investigating Unit; and Anton du Plessis, Chief Executive Officer, Business Against Crime South Africa.

Haffajee’s introduction of her beat – as the Cities Reporter for Daily Maverick, covering ‘water outages, pothole numbers, and streetlights that don’t work’ - framed the conversation from the perspective of a journalist bearing witness to downstream impacts of organised crime and corruption on service delivery, public trust, state performance, and democratic stability.

Advocate Andy Mothibi, National Director of Public Prosecutions, underscored the impact of corruption on the provision of social services.  Corruption is characterised by collusion, gratification, and the abuse of influence, typically involving both public officials and private actors, said Mothibi.

These networks exploit government procurement processes, which are designed to deliver public goods such as roads, schools, clinics, water infrastructure, and hospitals. On the surface, tenders may appear legitimate, but underneath, funds are siphoned off and services never materialise. The result is not only financial loss, but systemic institutional damage, he said.

Multiple speakers highlighted public procurement as the central interface between organised crime and corruption. Investigations by the Special Investigating Unit (SIU) consistently show that procurement is where collusion between state officials and private companies is most entrenched. Criminal networks embed themselves early in the tender cycle, where officials assist favoured service providers in shaping requirements to ensure a predetermined outcome. 

Pranesh Maharaj, Chief Programme Portfolio Officer, Special Investigating Unit, said that the consequences of procurement corruption are acutely visible in service delivery failures. Funds allocated for hospitals, water services, housing, roads, and public infrastructure are diverted into private hands. Communities experience broken clinics, stalled infrastructure projects, intermittent water supply, and dysfunctional public facilities - not because resources are unavailable, but because they are systematically captured. 

The effect of organised crime and corruption on service delivery extends far beyond delayed projects. According to Maharaj, between 12% and 15% of South Africa’s GDP is siphoned off annually through crime and corruption, with the poorest communities bearing the heaviest burden.

These losses translate directly into diminished social services. Money intended for education, healthcare, housing, sanitation, and social protection is diverted, leaving communities without essential support. Infrastructure projects are halted due to criminal extortion, particularly in sectors such as construction and water, further deepening inequality and public frustration. 

Gareth Newham, Advisor to the Acting Minister of Police, described organised crime as “hidden and highly disruptive,” noting that it “diverts resources, undermines institutions, and poses a significant obstacle to the provision of education, healthcare, infrastructure, and sanitation”

These service failures have profound social consequences. Communities lose faith in democratic institutions, civic norms weaken, and criminal actors are increasingly seen as alternative sources of power, income, and protection. This erosion of legitimacy directly threatens social cohesion and democratic stability. 

The cumulative impact of organised crime and corruption is not limited to immediate service delivery failures. Newham noted that organised crime actively undermines economic growth, diverting resources away from productive investment and essential public services. Contrary to earlier assumptions, economic growth alone does not reduce organised crime; instead, crime grows alongside the economy when governance is weak

As social services deteriorate and inequality deepens, social norms shift. Criminal success stories become aspirational, especially among youth facing unemployment and marginalisation. This social distortion further entrenches organised crime, creating a self‑reinforcing cycle of exclusion, illegality, and disillusionment

During the questions & answers session, Dave Lewis, shared an anecdote about being driven by a police officer who held up Vusimuzi ‘Cat’ Matlala as a role model.  

“He spoke highly of Cat Matlala - a figure revered by local youth as an example of success outside the system,” said Lewis, who used the story to underscore how criminal wealth and visibility can distort social values, and how criminals have come to embody aspiration rather than deterrence.

Overall, speakers at the seminar argued that organised crime and corruption are not episodic, but structural threats to development, democracy, and to the social contract.  And that they have contributed significantly to the current poly-crises of crippled service delivery, weakened social services, toothless institutions, and widespread erosion of trust in governance. And that ultimately, corruption is not a victimless crime, but one borne by those least able to afford them. 

Watch the Institute for Security Studies Seminar here.