On this page, we identify six causes of fraud and corruption in South Africa. Fraud and corruption are not the same, however, their causes and effects are often highly related. Both fraud and corruption can undermine trust, damage reputation, and also waste public resources.
Understanding the difference between Fraud and Corruption
- Fraud: Fraud is any intentional act or omission designed to deceive others, resulting in the victim suffering a loss and/or the perpetrator achieving again.
- Corruption: Corruption is the abuse of entrusted power for private gain, including bribery.
Six Causes of Fraud and Corruption in South Africa
- Unemployment
- Poverty
- Higher levels of market and political monopolisation
- Higher levels of bureaucracy and inefficient administrative structures
- Low economic freedom
- Lack of accountability and punishment to the corrupt