South Africa - Prevention and Combating of Corrupt Activities Act

    South Africa

    South Africa - Prevention and Combating of Corrupt Activities Act

    The Prevention and Combating of Corrupt Activities Act 12 of 2004 (‘the Act’) aims to strengthen measures to prevent and combat corruption and to provide for the establishment of a Register for Tender Defaulters (‘the Register’in order to place certain restrictions on persons and enterprises convicted of corrupt activities relating to tenders and contracts. 

    Last Updated: July 22, 2019


  • Requirements

    Any person who, directly or indirectly gives, agrees or offers to give to any other person any gratification, whether for the benefit of that other person or for the benefit of another person in order to improperly influence: 

    • the promotion, execution or procurement of any contract with a public body, private organisation, corporate body or any other organisation or institution; or 
    • the fixing of the price, consideration or other moneys stipulated or otherwise provided for in any such contract; 

    shall be deemed guilty of the offence of corrupt activities relating to contracts (Section 12(1)(b) of the Act). 

    Any person who, directly or indirectly, accepts, agrees or offers to accept any gratification from any other person, whether for the benefit of himself or herself or for the benefit of another person, as: 

    • an inducement to, personally or by influencing any other person to act award a tender, in relation to a contract for performing any work, providing any service, supplying any article, material or substance or performing any other act, to a particular person; upon an invitation to tender for such contract, make a tender for that contract which has as its aim to cause the tenderee to accept a particular tender; or withdraw a tender made by him/her for such contract; or 
    • a reward for acting as contemplated under Section 13(1)(a)(1), (2) and (3) of the Act 

    is guilty of the offence of corrupt activities relating to procuring and withdrawal of tenders (Section 13(1) of the Act) 

    At the same time, any person who, directly or indirectly:  

    • givesagrees or offers to give any gratification to any other person, whether for the benefit of that other person or the benefit of another person, as: an inducement to, personally or by influencing any other person so to act, award a tender, in relation to a contract for performing any work, providing any service, supplying any article, material or substance or performing any other act, to a particular person; a reward for acting as contemplated in section 13(2)(a)(1) of the Act; or 
    • with the intent to obtain a tender in relation to a contract for performing any work, providing any service, supplying any article, material or substance or performing any other act, gives, agrees or offers to give any gratification to any person who has made a tender in relation to that contract, whether for the benefit of that tenderer or for the benefit of any other person, as: an inducement to withdraw the tender; a reward for withdrawing or having withdrawn the tender, 

    is guilty of the offence of corrupt activities relating to procuring and withdrawal of tenders (Section 13(2) of the Act). 

    If the person convicted of an offence under section 12 or 13 of the Act is an enterprise, the court may issue an order to endorse in the Register, as established in accordance with section 29 of the Act, the following information (Section 28(1)(b) of the Act): 

    • the particulars of that enterprise; 
    • the particulars of any partner, manager, director or other person, who wholly or partly exercises or may exercise control over that enterprise and who was involved in the offence concerned or who knows or ought reasonably to have known or suspected that the enterprise committed the offence concerned; and 
    • the conviction, sentence and any other order of the court consequent thereupon. 

    In the case the convicted subject is a natural person, the court may issue an order to endorse in the Register the information listed in section 28(1)(a) of the act, with regard to (Section 28(1)(c) of the Act): 

    • any other enterprise owned or controlled by the convicted person; and  
    • the particulars of any partner, manager, director or other person, who wholly or partly exercises or may exercise control over such other enterprise. 

    Any person who holds a position of authority (as defined by Section 34 (4) of the act) and who knows or ought reasonably to have known or suspected that any other person has committed:

    • an offence under Part 1, 2, 3 or 4, or section 20 or 21 (in so far as it relates to the aforementioned offences) of Chapter 2 of the Act; or  
    • the offence of theft, fraud, extortion, forgery or uttering a forged document  

    involving an amount of R100 000 (approx. €6,400) or more, must report such knowledge or suspicion or cause such knowledge or suspicion to be reported to any police official (Section 34(1) of the Act). 

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