DA calls for probe into FSB CFO corruption allegations

15 June 2014

At the earliest available opportunity, the DA will write to the Chairperson of the Finance Portfolio Committee, Yunus Carrim, and request that the committee summon the Financial Services Board (FSB) to Parliament to account for the recent allegations of corruption within the Board's leadership.

I will also submit parliamentary questions to the Minister of Finance, Nhlanhla Nene, to determine the exact nature of corruption allegations lobbed against FSB Chief Financial Officer, Dawood Seedat (see Business Times report).

Mr Seedat's sudden resignation following corruption allegations levelled against him in his "personal capacity" is cause for serious concern and calls for clarity.

The Financial Services Board is an independent institution established by statute to oversee the South African non-banking financial services industry in the public interest and performs a crucial governance function over trillions of rands that belong to millions of hard working South Africans.

It appears that a crisis of leadership at state institutions is well underway, which could have a devastating effect on the institutions' capacity to deliver on their mandates. Two weeks ago, Public Investment Corporation's Chief Exectutive Officer, Elias Masilela resigned without explanation and the head of the Government Employees Pension Fund, John Oliphant has also been suspended for several months.

At a time when confidence in our economy is at a demoralising low, following the downgrade by two of the world's top rating agencies, and ever declining economic growth curbing job creation, we simply cannot afford any loss of faith in key institutions.

Minister Nene must provide clarity on:

·  Details relating to exact nature of the allegations faced by Mr Seedat and whether they compromised his position or capacity within the FSB;

·  Details pertaining to the investigation into the allegations, particularly -

1. What stage has the investigation reached?

2. Will details of the investigation be released to the public?

3. What remedial action has been or is to be taken should misconduct be established? and

4. What interim plans are in place to mitigate the recent loss of senior leadership within the institution?

Corruption within state entities ultimately harms government's ability to deliver crucial services to the people of South Africa. Those responsible for corrupt acts must be held to account.

This also requires a spirit of transparency from within institutions themselves. The nature and details of allegations against Mr Seedat are thus of critical importance.

The DA will continue in our efforts to ensure South Africans receive the answers they deserve.

Statement issued by Dr. Dion George MP, DA Shadow Minister of Finance, June 15 2014

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