SHADOW STATE
SHADOW STATE
THE POLITICS OF STATE CAPTURE
IVOR CHIPKIN & MARK SWILLING
WITH
HAROON BHORAT | MBONGISENI BUTHELEZI | SIKHULEKILE DUMA HANNAH FRIEDENSTEIN | LUMKILE MONDI | CAMAREN PETER NICKY PRINS | MZUKISI QOBO
Published in South Africa by:
Wits University Press
1 Jan Smuts Avenue
Johannesburg 2001
Copyright © Ivor Chipkin, Mark Swilling, Haroon Bhorat, Mbongiseni Buthelezi, Sikhulekile Duma, Hannah Friedenstein (pseudonym), Lumkile Mondi, Camaren Peter, Nicky Prins and Mzukisi Qobo 2018
Foreword © Mcebisi Jonas
Afterword © Ferial Haffajee
Published edition © Wits University Press 2018
First published 2018
http://dx.doi.org.10.18772/22018072125
978-1-77614-212-5 (Print)
978-1-77614-213-2 (Web PDF)
978-1-77614-214-9 (EPUB)
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the written permission of the publisher, except in accordance with the provisions of the Copyright Act, Act 98 of 1978.
Copy editor: Pat Tucker
Proofreader: Lee Smith
Indexer: Mirie van Rooyen
Cover design: Fire and Lion
Typesetter: Newgen
Typeset in 9.5 point ScalaPro
Contents
Chapter 1Structuring the Capture of the State
Chapter 2The Politics of Betrayal
Chapter 3Power, Authority and Audacity: How the Shadow State Was Built
Chapter 4Repurposing Governance
List of figures and tables
Figures
Figure 1.1. Generalised model of a patronage network that extracts and administers rents
Figure 2.1. Number of fraud and corruption cases related directly to state and SOE procurement (2010–2016)
Figure 3.1. Financial flows via the shadow state
Tables
Table 1.1. Known outflows from Gupta-linked companies and individuals
Table 2.1. Value of fraud and corruption charges against Transnet, Eskom and SASSA (2010–2013)
Table 4.1. Value of South African SOE procurement (2010–2011)
Table 4.2. South African government guarantee exposure (2014/15–2016/17)
Acronyms and abbreviations
| ACSA | Airports Company South Africa |
| ANC | African National Congress |
| ANCYL | African National Congress Youth League |
| ASGISA | Accelerated and Shared Growth Initiative for South Africa |
| B-BBEE | broad-based black economic empowerment |
| BBC | Black Business Council |
| BEE | black economic empowerment |
| BLSA | Business Leadership South Africa |
| CEO | chief executive officer |
| Cosatu | Congress of South African Trade Unions |
| CSIR | Council for Scientific and Industrial Research |
| DTI | Department of Trade and Industry |
| Gear | Growth, Employment and Redistribution |
| IDC |
Industrial Development Corporation
|