Stop the JCPS Cluster’s “power grab” aimed at controlling the FIC
22 May 2017
The Minister of Justice, Michael Masutha’s, call to reinstitute the counter money laundering advisory council is a blatant attempt to dilute National Treasury’s control over the Financial Intelligence Centre (FIC), which is one of the most important weapons in the fight against corruption in South Africa.
During his pre-budget press conference last week on 18 May 2017 the Minister stated that:
“The relationship between the JCPS Cluster and the Financial Cluster is critical in the combatting money laundering, illicit financial flows and terror financing. The Financial Intelligence Centre Act significantly made provision for a counter-money laundering advisory council to be constituted by the heads of entities and directors-general from both clusters. A concerning feature is that the FICA Amendment Act does away with this all important advisory council. It is crucial that any regulations accompanying the amendment act reinstitute provision of the Council. The Council would serve as an oversight accountability structure in relation to the functioning of the Financial Intelligence Centre and would advise government on its endeavours in the fight against money laundering, illicit financial flows and terror financing.”
If the counter money laundering advisory council was reinstituted it would: comprise of inter alia the Commissioner of the South African Police, the National Director of Public Prosecutions and the Director-General of the State Security Agency; require the Minister to consult the council before appointing a person, or reviewing the appointment of a person, as the Director of the FIC; and require the Minister to take advice from the council on the performance of the functions of the FIC.
What is particularly scary is that the minister envisages the counter money laundering advisory council, not as an advisory structure, as it was originally envisaged, but as an oversight and accountability structure, keeping an eye on the FIC, and believes that it can be reinstituted by regulation, rather than an amendment to the Financial Intelligence Centre Act (No. 38 of 2001).
The fact is that the call to reinstitute the counter money laundering advisory council is a blatant “power grab” aimed at removing, or diluting, National Treasury’s control over the the day-to-day operations of the FIC, which would be bad for the fight against corruption in South Africa.
The Minister of Finance, Malusi Gigaba, should use his budget vote speech tomorrow to reassure the public that he will stand up to his Cabinet colleges and reject any idea of reinstituting the counter money laundering advisory council and diluting National Treasury control over the FIC, which he knows is one of the most important weapons in the fights against corruption in South Africa.
Issued by David Maynier, DA Shadow Minister of Finance, 22 May 2017
