The State Capture and Beyond report has revealed that disaster declarations have become corridors for corruption, with the Special Investigating Unit (SIU) finding irregularities in over half of the Covid-19 procurement contracts.
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Disaster declarations have become corridors for corruption, with emergency procurement processes creating opportunities for the misuse of funds, inflated pricing and looting by government officials and connected service providers.
This is according to the recent Disaster Management report released by the State Capture and Beyond, which stated that the Special Investigating Unit (SIU) found irregularities in over half of the Covid-19 procurement contracts, amounting to R8,9 billion in irregular spending.
State Capture and Beyond is a nationwide accountability campaign in South Africa dedicated to combating systemic corruption and fostering transparency in governance. Launched in 2024, the initiative is a collaboration between the Legal Resources Centre (LRC) and the Human Rights Media Trust (HRMT), with support from the European Union.
The declaration of a state of disaster is primarily governed by the Disaster Management Act 57 of 2002 (DMA). This legal framework allows for the formal recognition of an event that exceeds the local capacity to manage, triggering extraordinary executive powers and the release of emergency funds.
The report stated that the state of disaster has become a loophole for looting, adding that the Covid-19 pandemic revealed worrying misuses of state power.
“The SIU investigated procurement contracts entered during the Covid-19 national state of disaster on suspicion of irregularities. Of the 5,515 contracts investigated (valued at R17,8bn), the SIU found irregularities in 2,965 valued at R8,9bn,” read the report.
The SIU has been conducting extensive, multi-year investigations into corruption, fraud, and maladministration related to COVID-19 relief and procurement, including the awarding of contracts for Personal Protective Equipment (PPE) and other goods and services across all spheres of government.
Last month, the Special Tribunal declared R14 million in PPE tenders from the Mpumalanga Department of Health unlawful and void, ordering the co-owners of Tark Group to repay the profits following the SIU investigation.
The SIU recently received permission from the Special Tribunal to introduce new evidence regarding unlawful contracts worth R150 million involving Digital Vibes and National Health Insurance communications.
Audits by the Auditor-General of South Africa (AGSA) on the 2022 and 2025 disaster relief funds also highlighted persistent failures in government response, ranging from slow delivery to widespread financial mismanagement. Using “real-time” audits to catch irregularities as they happen, the AGSA identified that even after the lessons of the 2022 floods, many municipalities continued to misuse funds for daily operations instead of disaster recovery in 2025.
The audits found recurring issues with price inflation, non-compliance with procurement laws, and the appointment of unqualified contractors. In KwaZulu-Natal, some Temporary Residential Units were built on unsuitable land or failed to meet quality specifications.
“When funds meant for flood-resilient housing or emergency PPE are diverted through irregular procurement, the state is not merely mismanaging funds; it is actively violating the constitutional rights of its most vulnerable citizens,” stated the report, adding that the challenge for South Africa in 2026 and beyond is to build a disaster management system that is as transparent as it is rapid, ensuring that the loosening of controls required for speed does not become an open door for the next wave of state capture.
Political analyst and governance expert Sandile Swana said South Africa has a state of disaster as a corridor for corruption, because it was seen as an opportunity where the normal regulations that govern state procurement could be waived.
Swana said this was orchestrated by the ANC to ensure that “criminals”, “embezzlers” and “liars” are part of the party for the purpose of looting state resources.
“Some are deployed in very large numbers and systematically in groups to loot state resources. When a state of disaster is declared, it is declared in a context where the criminal networks that are designed to loot the state's resources are in place,” he said.
Swana added that the disciplinary processes have also been crippled because the people who are supposed to implement consequences management are also implicated in corruption.
He added that corruption in South Africa pervades all levels of governance, from the lowest municipalities to the Presidency, with the ANC and the business sector acting as the primary channels for this graft.
Professor Sipho Seepe said that while the declaration of the disaster framework should be seen as the state's attempt to quickly respond to an unfolding and present calamity, this has tended to provide a loophole for those who want to benefit from the crisis.
The report stated that the disaster management system must be properly resourced and staffed if the Disaster Management Act’s ambition is to be realised.
The campaign also recommended that South Africa’s disaster management would be significantly improved by implementing a Bangladesh-type methodology in impoverished communities, empowering street committees with legal standing and equipment, as well as a Japan-type system in provincial responses, giving Premiers greater autonomy to bypass national bottlenecks.
“This approach would also address the ongoing effects of spatial apartheid and inequity in disaster responses, ensuring that the most vulnerable communities hold the tools for their own survival and have agency in the process.”
manyane.manyane@inl.co.za