Godongwana allocates R8.9bn to law enforcement agencies to fight corruption, state capture

Finance minister Enoch Godongwana has allocated R8.9bn to law-enforcement agencies to bolster the fight against corruption and state capture.

Godongwana said the department of justice and constitutional development has reprioritised its budget to release funds to anti-money-laundering agencies such as the Financial Intelligence Centre (FIC) to boost capacity to implement recommendations of the state capture inquiry.

“Additional funding will enable the FIC to increase its human resources capacity and help the Special Investigating Unit (SIU) initiate civil litigation following state capture commission recommendations,” said the finance minister in his 2022 medium-term budget policy statement delivered in parliament on Wednesday.

It will also allow the National Prosecuting Authority (NPA) to improve its capacity in dealing with financial crimes uncovered during the inquiry chaired by chief justice Raymond Zondo.

“Funding will also be allocated to the NPA to increase capacity in specialised tax units and the Investigative Directorate, procure specialist prosecution services for complex matters, appoint forensic auditors and accountants to deal with high-priority forfeiture matters, establish a digital forensic data centre and finance increased witness-protection operational costs.

“As has been done with Bain, we will continue to take punitive administration against companies and individuals who have facilitated corrupt and irregular activities.”

Speaking at a press conference before Godongwana’s speech, SA Revenue Service commissioner Edward Kieswetter said the majority of cases of financial crimes, such as VAT fraud, are being won and matters are being referred to the NPA for prosecution.

He said Sars has handed  132 cases to the NPA this year, 57 of which have been finalised and56 had a guilty outcome. “So it’s a conviction rate of 98% in terms of cases we handed to the NPA.”

TimesLIVE