Rules against money-laundering don’t work in SA – ask Zuma’s friends
I recently helped a relative with a small payment of the equivalent of one month's salary towards a property deposit for a home in the UK. The lawyer refused to take my money unless it came via a bank account. Furthermore, I had to explicitly demonstrate this money was earned legally.
In South Africa, large cash lump sums, no questions asked, are fine, it seems. Lawyers owed money for fighting in a case involving former SAA chairperson Dudu Myeni accepted thick wads of R200 notes towards fees of about R120,000, reported Outa at the weekend.
SA banks similarly seem to turn a blind eye to the origin of funds, with FNB only recently closing a bank account belonging to Jacob Zuma's sons Duduzane and Edward. Yet, their names – like Myeni's – have featured prominently in the headlines in connection with state capture and corruption for at least five years.
This state of affairs is a mystery when you consider the onerous, expensive requirements on financial services companies to comply with the Financial Intelligence Centre Act (Fica). It is this law that is also responsible for the paperwork that makes it impossible for many hard-working people to open bank accounts or apply for debt like home loans without proof of residence, usually in the form of utility bills.
Objective number one of the Fica is to 'identify the proceeds of unlawful activities' (here's the law). When will SA's corruption-busters start firming up criminal charges against the many enablers of state capture in corporates, like banks, and professional services firms? This will send out a clear message that allowing corruption is not an accepted part of the culture.
You can catch up on the latest developments on Myeni and the Zondo state capture inquiry, here:
- 'Delinquent director' Myeni wheels in cash to settle R120k legal fees, block debt collectors
- Zondo to urgently lay criminal charge against Dudu Myeni for revealing witness name #StateCaptureinquiry
- Angry SAs speak: It's off to jail with you, treasonous Myeni
- Zondo unpacks how Myeni, JZ worked together: Nene axing, rand rigging, cash, police, Eskom
TO LISTEN…