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It takes a brave ANC MP to stand up against the seemingly all-powerful President Jacob Zuma in the fight against corruption. The ANC’s Yunus Carrim deserves applause, and more, for openly defying Zuma, who has sent back the Financial Intelligence Centre (FIC) Act to Parliament for a rethink. Zuma’s excuse for handing the Bill back to MPs was that the proposed legislation is not compatible with the Constitution. However, many believe the Bill could go a long way in stamping out the abuse of state funds at the highest levels of government and business by including clauses that make provision for the proactive monitoring of bank accounts, among other things. There has been strong resistance to the Bill among individuals who are surrounded by the stench of corruption. Carrim, meanwhile, is sticking to his principles, saying that Parliament will not “tremble and buckle” on the presidential lawyers’ say-so. Good luck to Carrim. He might find himself coming under pressure as have other ANC leaders who have stood in the way of the will of the President. Finance Minister Pravin Gordhan, who has been holding tightly onto the keys to the National Treasury, has spent much of this year fighting back against spurious crime charges. Former ANC MP Vytjie Mentor, who blew the whistle on the controversial Gupta family’s involvement in political decision-making at the highest levels, has been the subject of a smear campaign. Carrim has some support for his cause, not only from opposition politicians but also from Deputy Finance Minister Mcebisi Jonas – who has also raised the alarm on state capture. Jonas alleged that the Gupta family offered him the job of Finance Minister, which the Gupta family and President Zuma have denied. With Carrim – the chair of the standing committee on finance – refusing to stand down over the FIC Bill, it looks like Zuma might have another fight on his hands. – Jackie Cameron
By Liesl Peyper
Cape Town – Yunus Carrim, ANC MP and chairperson of the standing committee on finance, took a tough stance against the fact that the Financial Intelligence Centre (FIC) Bill has been sent back to Parliament for “constitutional reasons”.
“Parliament is not going to tremble and buckle just because the president’s lawyers said it’s unconstitutional. If the presidency’s lawyers are wrong, they’re wrong,” Carrim said.
His comments came after President Jacob Zuma on November 30 had referred the bill back to Parliament, because of reservations about its constitutionality.
The Democratic Alliance’s David Maynier said in his speech that Parliament’s finance committee applied its mind to similar provisions contained in this FIC Bill, and at the last minute agreed to amend a clause in the Twin Peaks Bill to narrow the scope and clarify the purpose of warrantless searches.
“The committee received assurance from Advocate Frank Jenkins, a senior parliamentary legal adviser, that following the amendment of Clause 137, the bill was constitutional,” Maynier said.
“However, in the absence of a formal legal opinion, and in the absence of a legal opinion on a similar clause in the FIC Bill an element of doubt has arisen as to whether the (Twin Peaks) Bill is constitutional,” he added.
Floyd Shivambu of the Economic Freedom Fighters also referred to the delay of the FIC Bill in his speech.
“The Parliament’s majority said the FIC Bill must be passed, and the ANC said it must be passed.
“But then the Saxonwold platforms and editorials in the (Gupta-owned) New Age (newspaper) editorials argue that the bill must not be passed,” Shivambu said. “So, just before Parliament closes the president decides to bring back that bill to be entertained. It frustrates the efforts to fight financial crimes,” Shivambu said.
Wrapping up the debate, Deputy Finance Minister Mcebisi Jonas acknowledged that there may be difficulty with the Twin Peaks Bill and the overall regulation of the financial sector in the absence of the ratification of the FIC Bill.
The Twin Peaks Bill was first introduced for public comment in December 2013 and a revised version was published in December 2014.
Members of Parliament’s standing committee on finance have deliberated the bill extensively since August this year.
I must read this FICA Bill amendment. It sounds very distasteful. Considering people who support it, I already don't trust it
— Mark Nyiwa Macala (@mithisa_motho) November 29, 2016
The bill aims to establish a new prudential regulator under the helm of the Reserve Bank that will be responsible for regulating all financial institutions – banks, insurance houses and the asset management sector.
Currently the Financial Services Board is overseeing the conduct of insurance houses and asset managers, but in future the body will cease to exist and a new body will be formed in its place, tasked with regulating market conduct and protecting consumers.
With the Twin Peaks Bill, Treasury wants to increase protection of South African consumers and regulate market conduct, while at the same time creating a more stable financial system.
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