New bill will scrutinise bank dealsSouth Africa’s delayed new spy law has “constitutional defects”, according to an opposing lobby group. Zuma lobbied not to sign President Jacob Zuma is considering objections to a piece of legislation that will allow the Financial Intelligence Centre (FIC) to monitor the transactions of politicians, their family members and other politically connected individuals in the private sector.BDLive reported yesterday that the Progressive Professionals Forum (PPF), led by former government spokesperson Jimmy Manyi, petitioned Zuma to not sign the FIC Amendment Bill into law.
Zuma’s spokesperson, Bongani Ngzulunga, confirmed to Bloomberg that Zuma was considering the merit of the objections, but pointed out that there was “nothing unusual” about the process.
The PPF claimed the amendment bill had “constitutional defects” as it could violate the human rights of people who are employed by the government, or family of government employees, because this makes them a prominent or influential person that immediately renders them a “suspect”.
The bill, which has gone through the National Assembly and the National Council of Provinces, was fiercely debated earlier this year in the standing committee on finance (SCOF) where DA MP David Maynier insisted on knowing whether the Guptas were under investigation for their financial transactions.
MPs were specifically at odds over the definition of “politically influential individuals”.
Finance Minister Pravin Gordhan said earlier this year the director of the FIC and the finance minister is prohibited by the legislation from indicating whether the FIC is investigating a particular individual.
Gordhan said if they named people being investigated, it could give the person time to hide assets.
BDLive also reported that a discussion document was submitted to Cabinet in which it was suggested that financial transactions that are above a certain threshold be moved out of National Treasury and fall under government’s security cluster.
The suggestion reportedly came from mineral resources minister Mosebenzi Zwane, who had earlier issued a media statement, announcing that government would institute a judicial commission of inquiry into local banks’ decision to withdraw services to the Guptas.
The Presidency has since distanced itself from Zwane’s statement about the so-called judicial inquiry.
The delay in signing the FIC Bill into law is viewed as yet another attempt by certain parts of government and the ANC to clip the powers and independence of Gordhan and Treasury.
In addition, the deferral also means that South Africa is likely to be non-compliant with international legislation that stop illicit flows of money, such as money laundering and money appropriated to finance terrorism.
NEWS24