“It is our desire to see the reduction of budgets in unnecessary spending areas such as VIP protection for ministers and blue-light brigades and, instead, to see more funds assigned to the various sectors within the criminal justice system such as the National Prosecuting Authority (NPA), SAPS, Special Investigating Unit (SIU), SARS and institutions like the Public Protector and the Auditor-General,” OUTA said in a statement ahead of Godongwana’s budget speech.

“Across all fronts and levels of responsible leadership in South Africa, the issue of corruption and organised crime is commonly regarded as a crisis and a hindrance to economic growth, and yet we don’t get a sense that government is prioritising the spending of our limited resources wisely enough to address this crisis.”

Over the past five years, OUTA pointed out that the NPA’s budget has not grown sufficiently enough to address its need, moving from R4.009 billion in 2019/20 to R5.889 billion in 2024/25. While this is an increase of 47% over five years, this started from an extremely low base and the NPA faces a massive and complex workload with the entrenchment of corruption and the growth in organised crime. This is an entity which still needs rebuilding and strengthening with experts. The NPA underfunding becomes even more apparent when noting that its budget includes funding the Asset Forfeiture Unit (R824 million) and the Investigating Directorate (R939 million), key institutions in the battle against state capture and grand corruption.

“The NPA needs significant resources. We note that the VIP Protection Services receives R2.177 billion, which we believe is massively over-resourced at the expense of essentials such as the NPA,” OUTA said.

The organisation added that the SIU limps along with just R450 million a year, but must provide professional forensic investigating and litigation services to all state institutions. “In theory, those institutions pay for its services, however the reality is different. The Presidency spends more on administration (R533 million), and the Department of Mineral and Petroleum Resources spends massively more on Mining, Minerals and Energy Policy (R1.200 billion) despite the apparent ongoing failure of this policy.”

As for the police, OUTA said the SAPS needs help, not necessarily more money although extra police on the street are always welcome, but a strategy for addressing the dysfunction that left South Africa with a police service utterly unable to respond to the July 2021 violence, and only slowly now starting to regard extortion – an aspect of organised crime – as a crime.

“This overhaul needs building into the medium-term strategy, and should include a strategy addressing the very expensive and failed Crime Intelligence unit (6 074 officers) and the well-padded Protection and Security Services (8 801 officers). Compare these staffing numbers to the SANDF’s Maritime Defence (5 870 staff) and Defence Intelligence (1 055 staff), or the NPA (6 618 staff).”

The limited resources for the Public Protector, OUTA said, sends a clear message of disrespect for the protection of the public from the abuse of authority. “The Public Protector receives a miniscule R352 million, which means it is unable to increase its staff complement as it would like to do.”

OUTA said it believes that for every R1 billion invested in effective rebuilding of structures that drive a concerted effort in the fight against corruption, South Africa could see ten times that amount as a return in higher tax collections, in more excise duties by challenging illicit trading, and in improved business confidence which will result in the growth of tax revenue and employment.

“It makes so much sense for the Minister of Finance to beef up all areas that tackle improved transparency and accountability, in order to begin to restore social justice and grow the economy,” said Wayne Duvenage, OUTA CEO.

“We hope to see more measured steps being taken to control the use of the equitable share grant funding to municipalities, with stricter consequences for failed service delivery, and ensuring that the funds don’t merely flow into the hands of corrupt syndicates.”

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These saw the country greylisted by the Financial Action Task Force (FATF) last year and presented with a list of action items to be complied with before it is pronounced “clean”.

A National Treasury (NT) statement issued this week post an update from last month’s FATF plenary in Singapore, has it South Africa by way of Finance Minister Enoch Godongwana’s NT, “does not expect South Africa to exit greylisting before June 2025, as per the action plan deadlines”.

The FATF plenary, the statement has it, did not discuss delisting South Africa from greylisting, focusing instead on progress made in addressing 17 outstanding action items.

“The FATF Plenary accepted the report of the FATF Africa/Middle East Joint Group that South Africa has largely addressed three further action items and hence has 14 outstanding items left to address, from the original 22.

“When the FATF greylisted South Africa at its February 2023 plenary meetings, it adopted a jointly agreed action plan containing 22 action items linked to eight strategic deficiencies identified in the country’s anti-money laundering and combating of financing terrorism (AML/CFT) regime. South Africa is required to address all 22 action items to exit the FATF greylist. The action items have differing deadlines, between January 2024 and January 2025.

“The January 2025 deadline serves as a general guide on the earliest time that South Africa can be expected to have addressed all action items in the action plan,” two years after placement of a country on the FATF greylist. When all action items have been addressed, the country is required to confirm its progress by way of an onsite visit by the FATF joint group.

This, NT has it, could see the FATF joint group in South Africa in April/May next year. If the assessment that all action items have been properly dealt with is confirmed a recommendation to remove the country from the greylist will go to the February 2025 FTF plenary. If any action items remain unaddressed by the January 2025 deadline, South Africa has to continue reporting to the FATF every four months until all deficiencies are addressed.

At the June meetings, the FATF plenary adopted a report by the FATF joint group for Africa/Middle East, confirming eight of 22 action items are addressed or largely addressed in accordance with specified deadlines. The items addressed relate to legal provisions criminalising terrorist financing and underpinning South Africa’s targeted financial sanction regimes.

South Africa is left with two reporting cycles in September and January next year in terms of the action plan. “Many” of 14 outstanding items are due in the last two reporting cycles “because South Africa has to demonstrate improvements made are sustained over successive reporting periods” the statement reads further.

“NT notes that whilst South Africa is on track to address all the outstanding action items, it remains a tough challenge to address all 14 the remaining action items by February 2025.

“All relevant agencies and authorities will need to continue to demonstrate significant improvements and also those improvements are sustained and are effective. The Minister of Finance has been leading a process within government to ensure that South Africa addresses all Action Items by February 2025, to enable South Africa to exit greylisting by June 2025,” according to the statement.

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