Finance Minister Enoch Godongwana has allocated R1.3 billion to the National Prosecuting Authority (NPA) to support the implementation of the recommendations of the state arrest commission and
Financial Action Task Force (FATF).
2023 budget speech
Godongwana, on Wednesday, delivered the 2023 budget speech to the National Assembly at Cape Town Hall.
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He said the Treasury is providing R14 billion over the medium term to fight crime and corruption to several law enforcement agencies.
This includes R100 million allocated to the Special Investigation Unit (SIU) to start civil trials in the Special Court, flowing from a proclamation linked to the recommendations of the state arrest commission, chaired by Chief Justice Raymond Zondo.
R7.8 billion is allocated to the South African Police Service (Saps) to appoint 5 000 police trainees annually. The Financial Intelligence Center will receive an additional R265.3 million to tackle organized and financial crime.
SA’s gray concerns
Regarding concerns that South Africa could be added to the FATF gray list on Friday, Godongwana said the country should be prepared for the possibility.
He said the government had made significant progress in addressing weaknesses highlighted by the global money laundering and terrorist financing watchdog, which SA has been a part of since 2003.
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The watchdog published a joint evaluation report in 2021 that highlighted vulnerabilities in
the country’s anti-money laundering system.
Godongwana said two laws have been passed to address technical deficiencies in the legislature
framework. These are the Public Laws Amendment Act 2022, and the Protection of Constitutional Democracy Against Terrorism and Related Activities Amendment Act.
“The legislation addresses 15 of the 20 legislative deficiencies identified by the FATF. The remaining five deficiencies will be addressed through regulations and practices that do not require legislation.
“We recognize the need to be more effective in enforcing our laws, especially in the fight against organized and sophisticated crime,” he said.
If South Africa is greylisted, this could lead to increased banking fees and scrutiny from international banks.
SAA and the Post Office received huge bailouts from the government