The recent seizure of R52 million in illegal coal mining proceeds by the NPA’s Asset Forfeiture Unit, in cooperation with Namibia, is a positive step in tackling illicit cross-border transactions. However, this isolated success is not enough to address the systemic failures that have landed South Africa on the Financial Action Task Force (FATF) grey list.
Adv. Glynnis Breytenbach MP, DA Spokesperson on Justice and Constitutional Development, warns that while such victories are commendable, they do not signify a turning point.
“One swallow does not equate to a summer,” she said. “The reality is that South Africa remains grey-listed because our criminal justice system has failed to effectively combat and prosecute financial crimes.”
The NPA’s inability to prosecute high-profile corruption cases and complex financial crimes remains a critical issue.
Breytenbach highlights the alleged corruption in Mpumalanga, where illegal coal mining operates in plain sight, enabled by government officials.
“These officials, who allegedly facilitate illicit cross-border transactions, are not being held accountable,” she said. “The NPA lacks the independence, resources, and capability to tackle these crimes effectively.”
The FATF has explicitly called for South Africa to demonstrate a sustained increase in investigations and prosecutions of serious and complex money laundering, particularly involving professional money laundering networks and enablers. So far, the NPA has yet to deliver on this front.
To address these challenges, the DA has proposed the establishment of an Anti-Corruption Commission (ACC), or “Scorpions 2.0,” through a Private Members Bill currently before Parliament.
The ACC would be an independent body empowered to investigate and prosecute serious corruption and high-level organised crime. It would be staffed with the expertise needed to tackle the crimes that have led to South Africa’s grey-listing on a large scale and in a holistic manner.
“The ACC is the solution South Africa needs to get off the grey list,” said Breytenbach. “Without a dedicated, independent, and well-resourced body to tackle corruption and financial crimes, we will continue to fall short of international standards. Prosecutions, not easy wins, are what will restore confidence in our criminal justice system and secure South Africa’s removal from the grey list.”
The DA’s proposal emphasises the urgent need for systemic reform to address the root causes of South Africa’s grey-listing and to ensure accountability for those who enable and benefit from corruption.
National Hawks head, Lieutenant General Advocate Godfrey Lebeya, says the Directorate for Priority Crime Investigation (DPCI) will begin to focus its attention on ensuring that the country deals with compliance obligations raised by the Financial Action Task Force (FATF) when it greylisted South Africa last month.
To achieve this, Lebeya said the Hawks will collaborate with other agencies both at the national and international levels.
The Lieutenant General made the commitment on Friday while delivering a public update on the Directorate’s operations in the third quarter of the 2022/2023 financial year.
This comes after South Africa was put on a greylist in February by the FATF for falling short of certain international standards for the combating of money laundering and other serious financial crimes.
The FATF is a global body that aims to tackle global money laundering and terrorist financing. South Africa has been a member of the FATF for the last 20 years due to its commitment to fighting these criminal activities both at home and across the world.
