Authored By: Mpho Mkhonto
University of South Africa
Abstract
The state of uprising in corruption has led to a drastic decline in economic development, which has resulted in many developing countries, including South Africa, suffering from economic stagnation. The strategic approach moving forward would be to implement whistleblower protection as a mechanism in employing stronger legislative frameworks that will allow for the ease in the process of disclosure of corrupt practices and the misappropriation of funds. The paper will therefore argue for stronger legislative enforcement that encourages more individuals to report corporate misconduct in the public and private sectors as an initiative in the fight against corruption. While also exploring the adverse repercussions that individuals may encounter in their efforts to uphold truth, transparency, and accountability.
Introduction
Corruption as an issue of national economic stagnation has become progressive to the point that it has led to the formation of the United Nations Convention Against Corruption (UNCAC),1dealing with five key features:(a) international cooperation, (b)criminalisation and law enforcement, (c) preventive measures, (d) technical assistance and information exchange, and (e) asset recovery.2 Given the rising incidences of fraud, embezzlement, and favouritism in contract and tender allocation, whistleblowers serve a crucial function in challenging and mitigating the prevailing culture of corruption. The relevance of the Protected Disclosure Act (PDA)3, the Labour Relations Act (LRA)4, and the Protection Against Harassment Act (PFHA)5, in conjunction with the Constitution of the Republic of South Africa6, is therefore underscored in addressing these issues as a protective measure for individuals who seek to challenge a system inherently structured to favour high-ranking officials.
However, it is important to acknowledge that despite the existence of legislative frameworks, there remains a significant gap in their implementation, posing risks to whistleblowers, including financial, psychological, social, and professional detriment.
Olken and Pande (2012) further stress the point that with ‘the ability of corrupt officials to substitute for alternate forms of corruption and to otherwise adapt to policy changes, either in the short run or the long run, suggests that applications of these principles can be tricky in practice’.7 This led us to the question of whether the solution lies in a collective effort by numerous whistleblowers to present irrefutable evidence, while also ensuring law enforcement officials play their part in preventing the disappearance of crucial case files.
Research Methodology
This study will follow a qualitative research approach, combining primary and secondary sources. Primary sources will include government reports, and secondary sources will include academic articles, case studies, newspaper articles, policy analyses, and legislation.
1 Gaps and challenges in the current legal framework
There remains a pressing need to enhance the clarity, scope, and enforcement of whistleblowing laws to protect the courage of individuals who have taken a personal oath to uphold the integrity of serving the people in good faith. To address this need, the PDA has to observe the safeguards enacted for whistleblowers through robust disclosure procedures in government and private companies. Maintaining proper compliance with procedural guidelines, including shielding employers from retaliation after making protected disclosures, while also protecting employers from baseless or malicious accusations. A balance must be struck to ensure that whistleblowers’ evidence is thoroughly verified and that all legal procedures are meticulously followed, maintaining the integrity process.8
In addition to the PDA, the LRA is supposed to reinforce workplace safeguards, ensuring that employees who report misconduct are fairly treated and that employers adhere to fair labour practices. Sections 186(2) (d) and 187(1) (h) of the LRA further state that the safety of whistle blowers against unfair labour practices and unfair dismissals, while section 191 (3) guarantees fair treatment of whistle-blower employees and prevents workplace retaliation, to uphold the principles of justice and transparency.9 Despite these provisions that aid whistleblowers, they still often face severe professional repercussions, including job loss and subsequent difficulties in securing employment. This adverse treatment not only discourages potential whistleblowers but also undermines the overall effectiveness of anti-corruption measures. It proves that the Companies Act10 itself lacks the active fundamentals, which aim to protect whistleblower disclosure from any civil, criminal or administrative liability, as investigations tend to turn on the whistleblower disclosure even when there is strong evidential material presented. The absence of these safeguards, therefore, compromises their ability to address corruption effectively. When companies neglect to shield whistleblowers from retaliation and instead focus on discrediting them or downplaying their findings, it creates a hostile environment that discourages transparency. Consequently, this hinders the detection and resolution of corrupt practices, ultimately harming both the organisation and society. To remedy these gaps, organisations can proactively develop and enforce comprehensive policies ensuring a safe, confidential reporting system and fostering a culture of accountability.11 Even though the Prevention and Combating of Corrupt Activities Act12 mainly focuses on anti bribery and corruption prevention, its principles still require stronger integration into corporate policies to effectively combat corruption.
The understanding of these procedural gaps will guide our exploration of economic implications in the subsequent section, where we will dive into the financial consequences of corruption and the role of whistleblowers in mitigating them.
2 Economic impact: effect of corruption on the economy
Widespread corruption has severely undermined public trust and confidence in government institutions, as it perpetuates a lack of transparency and accountability. Ongoing corruption not only damages the reputation of political and administrative bodies but also hinders their effectiveness in serving the public interest.13 Moreover, corruption causes a disadvantage to the vulnerable populations, including the middle class and impoverished communities, increasing social and economic inequalities. Due to the extensive reach of corruption, South Africa has found itself in a form of state capture, where private individuals manipulate government decision-making to their own advantage, further entrenching inequality and undermining democratic governance.14
Corruption practices, such as favouritism in awarding government contracts, have not only undermined the right to fair procedure and transparency, but have also resulted in the degradation of infrastructure, public service, healthcare, high unemployment rates and a rise in tax contributions, leaving vulnerable populations to suffer the consequences. Pressing on the matter of high taxes, it forms as a severe outcome of corruption, due to a marginal rise in tax rate of companies, a rise in marginal costs of public funds, which gravely decreases the chances of salary increases, leaving many South Africans living from hand to mouth.15
While South Africa has implemented measures like social grants, disability support, and housing initiatives to alleviate economic hardship, these efforts face challenges in fully addressing the deep-rooted issues of inequality and poverty. The persistence of economic problems calls for the need for more comprehensive solutions.16
2.1 Consequences of uncovering financial misconduct
In this context, we look into the real-life cases of whistleblowers who played a vital role in revealing hidden injustices and corruption that plague our system. By exposing fraud and misconduct at the risk of their own well-being, to bring light, offering a chance of accountability and transparency. It is with extreme tragedy that some of them had to pay with their own lives.
2.1.1 Case Studies: Real-life stories of economic whistleblowing
Unveiling state capture: ‘Stan’ and ‘John’, the Gupta Leaks’
The Gupta Leak is a landmark of state capture as one of the most prevailing whistleblowing disclosures that unravelled corruption in corporate governance. This was during the time of former President Jacob Zuma’s administration. A time where approximately billions of rand were exploited, with private companies being awarded government contracts, and such companies being connected to the Gupta family. The Gupta leaks had then provided Brian Currin, a human rights lawyer, with detailed emails interlocking the relationship of the Gupta family with the Zuma family, ministers, and heads of state-owned enterprises. The unravelling of the information (evidence) led to the ‘Zondo Commission of Inquiry into State Capture’. Due to the dangers associated with the revelations of evidence, the two whistleblowers chose to remain anonymous and moved overseas to protect themselves and their families.17 Corruption meets tragedy: The Moss Phakoe story.
Moss Phakoe, who was an ANC councillor from 2002 until his departure, alongside his friend Alfred Motsi, collectively gathered evidence after having suspicions of corruption at the Bojanala Platinum District Municipality. Phakoe bravely uncovered corruption dealing in the Northwest Province of the expropriation of fund for the drought relief issues in the province. Despite numerous attempts to contact the ANC regional and provincial leaders, national executive committee members, the ANC secretary-general and the office of the President, their concerns remained overlooked. After all their attempts, Phakoe was tragically murdered. His rival, Mayor Mathews and his former bodyguard were convicted of orchestrating the murder but later acquitted. Phakoe’s case remains a stern reminder of the perils faced by whistleblowers and the ongoing struggle for accountability and transparency in South Africa.18 Corruption in the Department of Health: Babita Deokaran
Babita Deokaran, a courageous whistleblower, was the acting CFO of the Gauteng Department of Health. Deokaran was tragically assassinated in 2021 after uncovering widespread corruption in the Gauteng Department of Health. Her tireless efforts to expose a corruption syndicate led to several dismissals of those implicated within the Department, with the hopes of recovering the misused funds. Deokaran’s investigation into fraudulent COVID-19 revealed a corrupt network involving high-ranking officials. Before she could expose the mastermind, she was gunned down, even though her killers were caught; the main orchestrator remains unknown. The evidence she presented remains with the Directorate for Priority Crime Investigations (Hawks), leaving her case a disturbing reminder of the dangers whistleblowers face.19
3 Strengthening whistleblower safeguards through effective implementation and enforcement
3.1 Enforcement mechanisms: how to hold perpetrators accountable
Enforcing whistleblower protection requires more than just laws on paper; it demands robust mechanisms to punish those who silence whistleblowers and ensure justice prevails. Effective enforcement not only deters retaliation but also restores trust in the system, encouraging more individuals to come forward and expose wrongdoing.
Organisations like the Platform for the Protection of Whistleblowers in Africa (PPLAAF) play a vital role in supporting and safeguarding whistleblowers, offering legal assistance and advocating for stronger protections across the continent. PPLAAF offers guidance and support through its teams of lawyers, anti-corruption activists and investigative journalists. These professionals form a crucial support system for whistleblowers, assisting them with strategic litigation and advocacy. The organisation provides a secure online platform for submitting sensitive information and leverages its international network to protect whistleblowers from retaliation. Ultimately, PLAAF strives to promote whistleblower-friendly laws across African governments, benefiting citizens and fostering transparency.20
Building on its existing efforts, South Africa further strengthens its commitment to whistleblower protection with the launch of the Protecting and Promoting Whistleblowers in South Africa (PPW) project. The PPW project, in collaboration with the Democracy Works Foundation (DWF) and the Whistleblower House (TWBH), has been promoting whistleblower rights since the 2024 launch.
Key achievements include having assisted 47 whistleblowers with legal and psychological help, creating informative resources like handbooks and guidelines, and guidelines, and developing a digital platform to honour whistleblower contributions. These efforts demonstrate the project’s commitment to empowering and safeguarding those who fight against wrongdoing.21
3.2 Future Reforms: Proposed changes to improve protection in combating corruption
In establishing enhanced whistleblower security, several reform proposals are gaining traction, including creating a comprehensive whistleblower protection framework, appointing a whistleblower champion, establishing internal reporting channels, and providing financial support for whistleblowers.
Drawing inspiration from international whistleblower laws, a suggested amendment to the PDA would require employers to provide substantial evidence for adverse actions taken against employees, ensuring these actions are not retaliatory. This change aims to align South Africa’s legislation with the best global practices and offer strong legal backing. Ultimately, stricter legal protections, secure anonymous reporting programmes, and heightened public awareness are essential for fostering a culture in which whistleblowers will feel safe to speak up. Leading to a more transparent and accountable society.22
4 Conclusion
It is clear from the study that corruption has had a massive impact not only in South Africa but globally. There is still a long way to go to recover and reform what has already been broken. Even with the progressive efforts of whistleblowing from those individuals who strive for the greater good of the people, along with the economy. More frameworks need to be put in place to provide protection and to maintain a clear public policy that will not be altered.
Bibliography
Primary source
Statutes and statutory instruments
Companies Act 71 of 2008
Constitution of the Republic of South Africa, 1996
Labour Relations Act 66 of 1995
Protection Disclosure Act 26 of 2000 (Amendment Act 5 of 2017)
Protection Against Harassment Act 17 of 2017
United Nations Convention Against Corruption (Adopted 31 October 2003) entered into force (14 December 2005) 2349 UNTS 41
Secondary sources
Journal articles
Benjamin A Olken and Rohini Pande, ‘Corruption in Developing Countries’ (2012) 4 Annual Review of Economics 479.
Georgieva N and Krstesk H, ‘Corruption in South Africa: Genesis and Outlook’ (2017) 5 JPMNT 49.
Mantzans E and Pillay P, ‘Corruption consequences for socio-economic well-being in South Africa’ (2019) 26 Alternation 40.
Salahuddin M et al, ‘Globalisation, poverty and corruption: Retarding progress in South Africa’ (2003) 37 Development Southern Africa 617.
Uys T and U Radulovic, ‘Truth to power: A historical overview of whistleblowing in South Africa’ (2025) 55 South African Review of Sociology 95.
Online Journals
Ivan Isrealstam, ‘Workplace Whistleblowers Are Well Protected’ (Blog post, 30 January 2023), Labour Law Management Consulting) < WORKPLACE WHISTLE BLOWERS ARE WELL PROTECTED – Labour Law Management Consulting >
Luke Fraser, ‘New laws to tackle corruption and protect whistleblowers in South Africa’ (BusinessTech, 13 July 2023) < New laws to tackle corruption and protect whistleblowers in South Africa – BusinessTech >
Shapujee Y, ‘Protecting and Promoting Whistleblowing in South Africa: Reflection from Year One’ (Democracy Works Foundation, 13 May 2025) < Protecting and Promoting Whistleblowing in South Africa: Reflections from Year One | DEMOCRACY WORKS FOUNDATION >
Whistleblowing International Network, ‘Platform to Protect Whistleblowers in Africa’ (Whistleblowing International Network, n.d.) < Platform to Protect Whistleblowers in Africa – Whistleblowing International Network >
1 Adopted by the United Nations General Assembly in 2003 and entered into force in 2005. 2 United Nations Convention Against Corruption (adopted 31 October 2003, entered into force 14 December 2005) 2349 UNTS 41, art 5.
3 Protected Disclosure Act 26 of 2000 (amendment act 5 of 2017).
4 Labour Relations Act 66 of 1995.
5 Protection Against Harassment Act 17 of 2011.
6 Constitution of the Republic of South Africa, 1996.
7 Benjamin A Olken and Rohini Pande, ‘Corruption in Developing Countries’ (2012) 4 Annual Review of Economics 479, 480.
8Ivan Isrealstam, ‘Workplace Whistleblowers Are Well Protected’ Labour Law Management Consulting (Blog post, 30 January 2023) < WORKPLACE WHISTLE BLOWERS ARE WELL PROTECTED – Labour Law Management Consulting > accessed 8 November 2025.
9 Platform to Protect Whistleblowers in Africa (PPLAAF), South Africa: Whistleblower Protection Guidebook (PPLAAF 2023) 12-34 < Platform to Protect Whistleblowers in Africa – Whistleblowing International Network > accessed 8 November 2025
10 Companies Act 71 of 2008.
11 Platform to Protect Whistleblowers in Africa (PPLAAF) 42-50.
12 Prevention and Combating of Corrupt Activities Act 12 of 2004 (4 of 2012).
13 Evangelas Mantzaris and Pregala Pillay, ‘Corruption consequences for socio-economic well-being in South Africa’ (2019) 26 Alternation 40, 42.
14 Mohammad Salahuddin and Others, ‘Globalisation, poverty and corruption: Retarding progress in South Africa’ (2003) 37 Development Southern Africa 617, 617.
15 Natasha Georgieva and Hadji Krstesk, ‘Corruption in South Africa: Genesis and Outlook’ (2017) 5 JPMNT 49, 49-54; Olken and Pande, ‘Corruption in Developing Countries’ 481.
16 M Salahuddin and Others, ‘Globalisation, poverty and corruption: Retarding progress in South Africa’ 618.
17 Tina Uys and Ugljesa Radulovic, ‘Truth to power: A historical overview of whistleblowing in South Africa’ (2025) 55 South African Review of Sociology 95, 105.
18 T Uys and U Radulovic, ‘Truth to power: A historical overview of whistleblowing in South Africa’ 107.
19 T Uys and U Radulovic, ‘Truth to power: A historical overview of whistleblowing in South Africa’ 108.
20 Whistleblowing International Network, ‘Platform to Protect Whistleblowers in Africa’ (Whistleblower International Network, n.d.) < Platform to Protect Whistleblowers in Africa – Whistleblowing International Network > accessed 11 November 2025.
21 Yasmin Shapujee, “Protecting and Promoting Whistleblowing in South Africa: Reflection from Year One’ (Democracy Works Foundation, 13 May 2025) < Protecting and Promoting Whistleblowing in South Africa: Reflections from Year One | DEMOCRACY WORKS FOUNDATION > accessed 11 November 2025.
22 Luke Fraser, ‘New laws to tackle corruption and protect whistleblowers in South Africa’ (BusinessTech, 13 July 2023) < New laws to tackle corruption and protect whistleblowers in South Africa – BusinessTech > accessed 11 November 2025.
