Treasury worked hard to avoid greylisting, Ramaphosa tells MPs

The National Treasury worked “very hard” to ensure concerns that led to SA being greylisted were kept to a minimum, says President Cyril Ramaphosa. 

Answering questions in parliament on Thursday, Ramaphosa said the Financial Action Task Force’s (FATF) decision to greylist the country was of “great concern”. 

“Our Treasury team worked very hard to ensure we reduced the number of concerns raised and we were able to almost eliminate all of them, barring five, six or seven. 

“Those are being addressed and we are hoping we will be able to address them to a point where we will be removed from the grey list,” he told MPs.  

Ramaphosa was responding to a question from the IFP’s Mkhuleko Hlengwa, who quizzed him on how Brics countries (Brazil, Russia, India, China and SA) were going to assist 15 other African nations to avoid the same fate.

Hlengwa reminded the president that SA had joined South Sudan, Uganda, Senegal and Mozambique, among other African states on the list. 

Regarding other states on the continent, Ramaphosa said SA would continue to raise issues of a good governance and legislative nature.  

“So this has clearly given us an opportunity to look at ourselves, but also to play an advocacy role in relation to the various other sister countries on the continent.  

“We are, therefore, as part of the 15 countries on our continent that sit on the UN financial ministers’ committee, opening up discussions on this matter because as we improve governance on our continent, this is one area which we all need to pay attention to.”  

In its advocacy role, SA would push to have other African countries removed from the list, he said.  

“Our minister of finance (Enoch Godongwana) sits on that AU committee and their discussions have started gravitating towards that direction. So we are going to be focusing on the issues that have been raised by the Financial Action Task Force so all of us can get out of that group of countries that are greylisted.”  

Ramaphosa added that the 15th Brics summit, due to take place from August 22 to 24, would be preceded by a state visit from one of the bloc’s leaders. 

Due to diplomatic discussions, however, he could not divulge who it would be. 

“We are still finalising those discussions at a diplomatic level. Have you polished up your Russian?” quipped Ramaphosa to Steenhuisen. 

On the matter, Hlengwa said: “It’s quite telling that you won’t tell us. It’s because you are in a diplomatic quadrium because of what is going on. I bet my last dollar it’s Russia.”

Ramaphosa said SA takes over from China as chair of Brics.

“One of our priorities during our chairship is to build a partnership between Brics and Africa, and unlock mutually beneficial opportunities for increased trade, investment and infrastructure development among the Brics countries.”  

Particular focus would be on stimulating economic growth on the continent, particularly through the African Continental Free Trade Area (AfCFTA) and infrastructure, he said.

There were great opportunities for Brics countries to participate in infrastructure development on the continent and take up opportunities that would strengthen AfCFTA by locating production and service activities in Africa and partnering with local companies and entrepreneurs in various sectors of the continent’s economies, the president added. 

“Another strategic priority is strengthening multilateralism, including working together towards real reform of global governance institutions, strengthening real participation of women and peace processes.”  

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