South African President Cyril Ramaphosa has said his government is intensifying its fight against corruption and illicit financial flows (IFFs) as an integral part of its plans to revive the country’s economy in the wake of the coronavirus pandemic.
In an address outlining the country’s Economic Reconstruction and Recovery Plan, the president said that a Special Investigating Unit (SIU) is already actively looking into allegations of criminal offences committed during the national state of disaster.
“We are working to clamp down on the illegal economy and illicit financial flows, including transfer pricing abuse, profit shifting, VAT and customs duty fraud, under-invoicing of manufactured imports, corruption and other illegal schemes,” said Ramaphosa.
“The decisive action we have taken to prevent, detect and act against Covid-related corruption will strengthen the broader fight against crime. The SIU has made significant progress in probing allegations of criminal conduct in all public entities during the national state of disaster,” he added.
Politically exposed persons
Ramaphosa said law enforcement agencies were being strengthened and provided with adequate resources to enable the identification and swift prosecution of corruption and fraud and that there will be no political interference with the work of law enforcement agencies.
“We will strengthen the framework to ensure that political office-bearers at all spheres of government do not do business with the state and we welcome the agreement…that all social partners will act decisively against corruption and fraud in their ranks,” said Ramaphosa.
Last year it emerged that trade-based money laundering (TBML) was extensively used to move illicit funds by companies linked with the Gupta family, which has been subject of extensive international scrutiny given its close ties to Jacob Zuma when he was South Africa’s president (Trade Based Financial Crime, 5 July 2019).
Categories: Trade Based Financial crimes News