Tell Minister Cele and Shaun Abrahams to charge tax evasion criminals

Parliament’s Finance Standing Committee wants drastic action to tackle illicit financial flows in Mzansi [1], but it turns out that SAPS and prosecutors are failing to act. If we put enough pressure on Police Minister Mbalula, however, we can ensure that authorities prosecute contraventions of exchange control regulations referred to them, and that those hiding billions overseas answer for their crimes.

Just recently, the Statistician-General published a report detailing poverty levels in Mzansi [2]. This report states that more than half the population live in poverty. This is a tragedy given that Mzansi loses billions each and every year due to illicit financial flows (IFF). Global Financial Integrity (GFI), a leading research institution on IFFs, recently estimated that illicit financial outflows from South Africa between 2005 and 2014 could represent as much as 14% of total trade. Between 2003 and 2012, GFI estimated that $122-billion in IFFs was transferred out of the country [3].

But we have made progress. Because of our campaigning for tax justice, our government is about to roll out country-by-country reporting [4]. Despite this, it is unlikely that those responsible will face prosecution anytime soon with the SAPS not taking any action against those who are guilty. If SAPS and the NPA were to prosecute those guilty of tax evasion and tax avoidance, this would be a great step in ensuring that those responsible are brought to book. Working with Treasury, they can ensure that the necessary steps are taken so that Mzansi brings an end to illicit financial flows.

[1] Interministerial Committee To Probe Illicit Financial Flows, Staff Reporter at Huffington Post. 2 Aug 2017
[2] Poverty Trends in South Africa: An examination of absolute poverty between 2006 & 2015
[3] [4] Parliament: Illicit financial flows and the history of disappointment, Greg Nicholson for Daily Maverick. 2 Aug 2017.