A proposal made by the Chief Justice in his State Capture report is that companies should be criminally charged for failing to stop corruption. This has introduced new corruption laws for South African businesses.

Zondo proposes amendments to PRECCA which will require businesses to prevent corruption from happening in the first instance, holding companies criminally liable should they fail to do so.

These proposed amendments have since been enacted. The Judicial Matters Amendment Act 15 of 2023 came into operation on 3 April 2024, inserting a new Section 34A into PRECCA. This creates a strict liability offence for members of the private sector and state-owned entities who fail to prevent persons associated with them from engaging in corrupt activities. The prosecution is not required to prove that the company participated in or knew about the corruption — only that it occurred for the company’s benefit or on its behalf.

The amendment also broadens the scope of Section 34, which imposes a duty on individuals in both public and private sectors to report any knowledge or suspicion of corruption or fraud to the South African Police Service where the loss involved exceeds R100 000. Critically, the new provisions extend liability to third-party contractors, acknowledging their role in facilitating corrupt activities through layers of bureaucracy.

Bowmans stated that Zondo’s proposed amendments create a defence in which the company may claim that it has “adequate procedures” to prevent corruption, even when corruption has occurred. This begs the question: What amounts to ‘adequate procedures’ according to the PRECCA?

The amendments being proposed by the Chief Justice are similar to the UK Bribery Act, Bowmans has identified six principles that should guide courts in determining what counts as adequate procedures based on the UK Bribery Act.

These principles could guide the definition of adequate procedures concerning the proposed new offence.

These are the six principles as stipulated by Bowmans:

  • Principle 1: Proportionate procedures – Companies should have clear procedures to prevent bribery. The procedures should be tailored to the particular company’s activities and its size and should take into account the risk involved.
  • Principle 2: Top-level commitment – The highest level of management of a company should commit to preventing bribery.
  • Principle 3: Risk assessment – The company must analyze the nature and extent of internal and external risks of bribery.
  • Principle 4: Due diligence – The company must apply due diligence procedures for the individuals who perform services on its behalf.
  • Principle 5: Communication – The company must have protocols in place that ensure that staff members within the company understand their anti-bribery obligations. They need to have a training programme on the various policies.
  • Principle 6: Monitoring and review – The company must monitor and revise procedures developed to prevent bribery to improve those procedures.

These principles provide direction for companies looking to formulate and implement adequate corruption prevention procedures in line with PRECCA’s requirements. As of March 2026, the South African government has not yet issued formal guidance on what constitutes “adequate procedures” under the new Section 34A, so companies should look to these UK Bribery Act principles as the most authoritative framework available.

Businesses should also ensure that their broader compliance frameworks are robust, as the new offence applies to current, ongoing, and future acts of corruption. It is also worth noting that the Cybercrimes Act creates additional reporting obligations where corruption involves electronic communications or computer systems.

Updated 14 April 2026 — Confirmed enactment of the Judicial Matters Amendment Act 15 of 2023 (effective 3 April 2024), and added detail on the section 34A strict liability offence and third-party contractor liability.