ANDY MOTHIBI | Harnessing the power of data analytics

As the war against corruption rages on, as a country and in particular anti-corruption authorities, we have to continually adapt our strategies and tactics, and study and understand the modus operandi of those who perpetrate the acts of corruption so that we can trace them. We have to be ahead of the game.

A popular adage reminds us that “the future is now,” a philosophy embraced by the Special Investigating Unit (SIU) as it seeks innovative ways to strengthen the fight against corruption. As we commemorate International Anti-Corruption Day on December 9, South Africans are reminded of the urgent need to address corruption, a deeply entrenched problem that continues to undermine democracy, erode public trust in public and private governance and stifle economic growth. At the forefront of this battle, the SIU is leveraging data analytics to revolutionise anti-corruption strategies, foster systemic resilience and safeguard public resources in an increasingly complex governance environment. Data is the new currency.

The National Anti-Corruption Strategy: A vision for a transparent future

The National Anti-Corruption Strategy (NACS) envisions a South Africa with minimal corruption by 2030. This vision is rooted in principles of transparency, accountability and the responsible use of public resources. However, with only five years remaining to achieve this goal, South Africans must recognise the urgency of the task. Corruption is not a distant problem but a daily challenge that affects the delivery of basic services, undermines trust in institutions and perpetuates inequality and poverty.

The SIU’s work aligns closely with the NACS’s principles, transforming technology into a critical tool for tackling corruption. Data analytics has emerged as a linchpin of the SIU’s efforts, enabling the identification of irregularities, the mapping of complex corruption networks and the proactive management mitigation of corruption risks. While this approach is cutting-edge, its fundamental premise is simple: using the power of data analytics and information gleaned from data analytics to strengthen governance and prevent corruption.

How the SIU leverages data analytics

The SIU’s integration of data analytics into its operations has fundamentally changed how corruption is detected, investigated, and prevented. At its core, data analytics allows the SIU to sift through massive volumes of information to identify patterns, trends, anomalies and corruption risks. In practice, this involves analysing financial transactions, procurement processes, and institutional behaviours to pinpoint areas of concern. These insights guide investigators, ensuring resources are focused on areas where corruption is most likely to occur.

For instance, by employing advanced pattern recognition techniques, the SIU can map out corruption networks that might otherwise remain obscured. These maps link seemingly unrelated individuals, activities, and transactions, shedding light on how corruption is perpetrated and enabling targeted interventions. Moreover, predictive modelling and analytics allow institutions to anticipate high-risk scenarios, empowering them to adopt preventive measures and mitigate risks.

This approach embodies the NACS’s emphasis on systemic changes to governance, underscoring the importance of using innovative tools to achieve lasting results. However, the journey is not without obstacles. According to the UN Office on Drugs and Crime (UNODC), access to structured data sets is critical for the successful application of data analytics. In many countries, including South Africa, this remains a challenge. The SIU has proactively built partnerships with government departments, civil society organisations and the private sector to secure the necessary data. These partnerships are critical for enabling comprehensive and effective anti-corruption measures.

Breaking barriers: Overcoming resistance and building capacity

Despite the potential of data analytics, resistance to change within institutions and the high costs of technological infrastructure remain significant barriers. Many organisations are wary of adopting new technologies, fearing the upheaval they might bring to established processes. Additionally, building the capacity to use data analytics effectively requires significant investment in training, technology, and expertise.

Nevertheless, the benefits of such investment are evident. In 2022, the auditor-general demonstrated the power of technology through real-time audits conducted during the response to catastrophic floods in KwaZulu-Natal and the Eastern Cape. These audits evaluated and audited processes as they unfolded, identifying risks and enabling immediate corrective action. The SIU’s use of similar data-driven methods shows how technology can address corruption risks early, closing gaps before maladministration takes root.

Collaboration in action: The National Priority Crime Operational Committee (NPCOC, formerly Anti-Corruption Task Team [ACTT]) and the establishment of sector anti-corruption forums — towards inclusion of the whole of society

The fight against corruption requires collaboration. Recognising this, the SIU has taken a leadership role in co-ordinating efforts across law enforcement and government. The National Priority Crimes Operational Committee (NPCOC), established under the South African Police Services Act, serves as a key platform for this work. As the convener of Programme Four of the NPCOC, the SIU focuses on protecting sectors vulnerable to corruption and mitigating risks.

We do this by forming and chairing sector anti-corruption forums, such as the Health Sector Anti-Corruption Forum launched by President Cyril Ramaphosa on October 1 2019, Infrastructure Built Anti-Corruption Forum launched by minister Patricia de Lille on May 25 2021, Local Government Anti-Corruption Forum, launched by former minister Nkosazana Dlamini—Zuma on September 20 2022. The Border Management and Immigration Anti-Corruption Forum was established and the inaugural meeting was held on April 8 2024. It will be launched by minister of home affairs Leon Schreiber.

These sector anti-corruption forums bring together stakeholders from law enforcement authorities, government departments, civil society, labour and regulators, They facilitate the sharing of insights, the development of best practices and the strengthening of collective efforts to combat and prevent corruption. Such initiatives exemplify the power of collaboration and include the whole of society in driving meaningful change.

Corruption in local governments: A persistent challenge

Local government remains a critical focus area for the SIU, given its vulnerability to corruption and maladministration. Municipalities, as the front line of service delivery, are often plagued by procurement irregularities, unauthorised expenditure, and weak financial oversight. To tackle these issues, the SIU’s market data analytics department conducted a comprehensive analysis of municipal corruption trends using tools such as the “Beyond Compare” system.

This investigation revealed that 30% of cases involved violations of procurement laws, particularly section 217(1) of the constitution, which mandates fairness, equity and transparency. Instances of unauthorised and wasteful expenditure accounted for 28% of cases, including duplicate payments and fraudulent invoicing. Furthermore, collusion between officials and service providers was alarmingly common, with false claims and inflated costs among the most frequent transgressions.

Systemic weaknesses compound these problems. Many municipalities lack clear policies, strong oversight mechanisms, and whistle-blower protections. This creates an environment where corruption can thrive. To address these challenges, the SIU has recommended a range of measures, including establishing independent audit committees, implementing robust internal controls, and enhanced financial management training for municipal officials. Strengthening the separation between political decision-making and administrative functions is also critical to safeguarding financial governance.

The Local Government Anti-Corruption Forum is also significantly contributing to combating corruption and maladministration in local government while strengthening the district development model.

The National Students Financial Aid Scheme (NSFAS) investigation: Lessons in fraud prevention

The SIU’s ongoing investigation into the National Student Financial Aid Scheme (NSFAS) offers a stark illustration of how data analytics can expose systemic failures. Under Proclamation R88 of 2022, the SIU was authorised to investigate allegations of maladministration, fraud and corruption within NSFAS. Using machine-learning algorithms, investigators cross-referenced financial aid disbursements with student records from universities and the department of home affairs.

This analysis uncovered about R5bn in irregular payments over five years, including funds allocated to deceased or fictitious applicants. The investigation also revealed poor co-ordination between state entities, highlighting the need for greater synergy between institutions such as Home Affairs and the South African Social Security Agency. Importantly, the SIU’s work extends beyond identifying fraud to providing actionable recommendations for strengthening governance structures at NSFAS.

This holistic approach underscores the SIU’s commitment to not only addressing corruption but also preventing its recurrence. By exposing systemic weaknesses and offering solutions, the SIU ensures that institutions can learn from past mistakes and build more resilient systems.

The SIU has to date resulted in R1.7bn being recovered and returned to NSFAS. Additionally, the SIU’s investigation helped recover R311,892,088 and R342,672 which were directly deposited into NSFAS's account.

A framework for the future

To institutionalise its efforts, the SIU is spearheading the development of the National Corruption Prevention and Risk Management Framework (CPRMF), a comprehensive strategy designed to address vulnerabilities that enable corruption. This framework emphasises prevention, detection, investigation, resolution and reporting, providing a proactive road map for safeguarding public resources.

Aligned and supporting the implementation of the NACS, the CPRMF integrates advanced data analytics to systematically track corruption and fraud risks. It also promotes open data standards in public procurement, reducing opportunities for corruption. Recent legislative developments, such as the promulgation of the Public Procurement Act, further reinforce these measures, addressing critical gaps in governance and oversight. 

The path forward: Living in the future

The SIU understands that living in the future requires a fundamental shift in how corruption risk is addressed. Moving from a reactive to a proactive anti-corruption demands significant investment in staff capacity, partnerships, and technology. To this end, the SIU has signed memoranda of understanding with local and international law enforcement agencies and institutions of higher learning. These partnerships ensure access to cutting-edge expertise and resources, strengthening the SIU’s ability to tackle complex challenges.

Through its innovative use of data analytics, collaborative initiatives and commitment to systemic reform, the SIU is setting a global example of how technology can transform the fight against corruption. As South Africa progresses towards the goals of the NACS, the SIU’s work will play a pivotal role in ensuring public resources are used transparently, equitably, and effectively.

In this journey, every South African has a role to play. By holding institutions and individuals accountable, demanding transparency, and championing ethical leadership and ethical governance, citizens can contribute to building a society where corruption has no place.

Together, we can ensure that the future envisioned by the NACS is not just a dream but a reality within our reach.

Fighting corruption is everyone’s responsibility.

• Adv Andy Mothibi is the head and CEO of the Special Investigating Unit of South Africa

For opinion and analysis consideration, email Opinions@timeslive.co.za