The health of any economy rests on more than just markets and money. At its foundation lies governance, the trust that laws will be applied fairly, that contracts will be honoured, and that public institutions act in the public interest. When that trust collapses, the effects ripple far beyond politics, striking at the heart of business confidence and long-term growth.
South Africa is facing such a moment right now. Lieutenant General Nhlanhla Mkhwanazi, KwaZulu-Natal’s police commissioner, recently made explosive allegations that senior figures interfered in investigations into political killings and colluded with criminal networks. He claims that more than 100 case dockets were taken from his task team, some of them “arrest-ready,” and that contracts worth hundreds of millions were channelled through questionable business links. His decision to go public has triggered a judicial commission of inquiry, a parliamentary ad hoc committee, and intense public debate.
For those following local commentary, YouTube channels like SMWX and Mighti Jamie have captured the mood of the country, unpacking both the courage and the risks of what Mkhwanazi has done. His story sits in a global pattern: whenever governance falters, business inevitably pays the price.
Look at Mexico, where cartel infiltration of police forces forced ordinary businesses to pay “protection” money just to stay open, driving investors away and pushing local economies into the shadows. Consider Italy in the 1990s, where the Mafia’s stranglehold on construction and waste management meant that honest entrepreneurs stood no chance unless they paid up. The assassinations of anti-Mafia judges Giovanni Falcone and Paolo Borsellino shocked Italy into action, sparking reforms that eventually restored confidence in fair competition. Even in New York in the 1970s, Frank Serpico’s decision to expose police corruption, nearly costing him his life, led to the Knapp Commission, which cleaned up the NYPD and strengthened the city’s reputation as a safe place to do business.
The lesson that runs through these examples is simple but uncomfortable: when governance is compromised, business loses. Contracts go to cronies, small firms collapse under extortion, and investors steer their money elsewhere. It is the honest operator, the shop owner, the builder, the entrepreneur who bears the brunt.
But these stories also carry another lesson, one that speaks directly to anyone navigating leadership, whether in the boardroom or the community. Silence in the face of corruption may seem like the safer path, but in the long run it corrodes everything. Mkhwanazi’s press conference in Durban reminded many South Africans of Serpico standing before cameras in New York, or Falcone speaking out against the Mafia in Sicily. Courage always comes at a cost. Yet time and again, history shows that the cost of silence is far greater.
Transparency, too, emerges as a theme. Whistleblowers often go public because they believe internal systems cannot be trusted. Businesses should take note. In an age where every decision can be scrutinised online, transparency is no longer a box-ticking exercise but a competitive advantage. Companies that open their books, disclose their practices, and act with integrity build trust with customers, investors, and regulators.
This is not just about politics or policing. It is about how values translate into economic reality. South African business leaders reading about Mkhwanazi’s claims should not only ask what this means for governance but also what it means for their own practices. Do they scrutinise the partners they work with? Are contracts awarded for merit or for connections? Are they building a culture that can withstand external eyes, or one that hides until caught?
The global cases remind us that corruption distorts markets, but reform can unlock growth. Italy’s clean-up opened doors for new players. New York’s reforms set the stage for its financial resurgence. Even Mexico, despite ongoing struggles, has seen regions benefit when governance improves. South Africa stands at a similar crossroads.
What makes this moment powerful is that it has sparked conversation not only in boardrooms and parliament but also in digital spaces where public opinion is shaped. Commentators on SMWX and Mighti Jamie’s platforms often stress that ethics is not just a moral stance, it is an economic one. A society where contracts are fair, where whistleblowers are protected, and where institutions serve the people rather than cartels or cronies is a society where business can flourish.
The Mkhwanazi saga is still unfolding. It may end in reform, or it may slip into yet another cautionary tale. But for those leading teams and companies today, it is already a reminder that honour, ethics, and transparency are not abstract virtues. They are the bedrock of sustainable success.
