A case of selective prosecution?
19 October 2016
The National Prosecuting Authority (NPA) will tell all who care to hear, that the body is independent, impartial and that the body acts without fear or favour. It follows then, that after the Finance Minister Pravin Gordhan has been charged with fraud - albeit with debatable merits of the case - that criminal charges too, should be laid against various individuals whose business ventures appear to have transgressed numerous South African laws.
An affidavit deposed to by the Finance Minister suggests that the Department of Mineral Resources was not entirely truthful in its approval of the transfer of R1.5 billion from a trust account to a bank in India. The affidavit is in support of an application for a Declaratory Order asking the Court to declare that as the Minister of Finance, he did not have the authority to intervene with the Banks’ decision to close business accounts associated with the Gupta family. The sum of R1.5 billion was meant to rehabilitate Optimum Coal Mine which is owned by the Gupta family - the subject of a Public Protector investigation into allegations of state capture.
This particular transfer is but one of similar transfers which in total amount to R6.8 billion. South African banks alerted the Financial Intelligence Centre as to the transactions before taking the decision to close the bank accounts belonging to the companies owned by the individuals named in the State Capture Report. In accordance with the Financial Intelligence Centre Act (FICA), banks are required to report any suspicious and unusual transactions to the Financial Intelligence Centre. Some news reports even go so far as to suggest that these same individuals, through their businesses, are involved in corrupt or criminal activities, and that this is accordingly reflected in their bank transactions.
In terms of the Prevention and Combating of Corrupt Activities Act, banks are required to report knowledge of corrupt activities. The same law, in addition, provides that any person who holds a position of authority and knows or ought reasonably to have known or suspected that any other person has committed an act of corruption involving an amount of R100 000 or more must report this information or suspicion to any police official.