Durban - South African political parties have lamented South Africa being placed under increased monitoring by the global anti-money laundering and terrorism financing watchdog, the Financial Action Task Force.
On Wednesday, while delivering his Budget speech, Finance Minister Enoch Godongwana said South Africans should brace themselves for possible greylisting by the FAFT.
Two days later, Godongwana’s warning became a reality as the Paris-based watchdog placed South Africa on the grey list.
International accounting firm PricehousewaterCoopers said the greylisting meant South African businesses and non-governmental organisations would have to deal with additional requirements to secure funding, which was likely to increase costs and delays in transactional execution.
The EFF’s national spokesperson, Sinawo Thambo, said the greylisting came as no surprise. “The EFF has since its inception highlighted the high rate of illicit financial flows, tax evasion and base erosion that characterises the South African economy.
Action SA’s director of policy, Johann Krige, said it was a devastating development that would further harm South Africa’s ailing economy and compound the unemployment crisis.
Dion George, a DA member of Parliament and spokesperson on finance, said South Africa’s greylisting was a damning indictment of the country’s criminal justice system and the government’s inability to combat financial crimes such as money laundering and terrorism financing. The ANC said it welcomed the active steps by Godongwana who had already tabled an “action plan for the Cabinet’s consideration”.
Cosatu spokesperson Sizwe Pamla said: “The country risks losing investment and workers’ retirement savings investments will also be highly affected. This is at a time when the economy is desperate for every single financial resource.”
SUNDAY TRIBUNE