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President Cyril Ramaphosa.
- The ANC NEC has pondered a plan to ban politically exposed persons from doing business with the state.
- The plan was first presented as part of Nedlac’s economic recovery solution.
- Ramaphosa said further consultation will take place with alliance partners and in legislatures.
The ANC NEC Lekgotla approved an economic recovery plan so that politically exposed persons are prohibited from doing business with the state.
President Cyril Ramaphosa said so in his televised closing address to the virtual National Executive Committee (NEC) in Lekgotla.
“More consultations will take place with alliance partners and in legislatures across the political spectrum to find the most appropriate approach to the issue of other politically exposed individuals doing business with the state,” he said.
The term Politically Exposed Person (PEP) is used for a person who has been entrusted with prominent public functions in a particular country.
According to the Financial Intelligence Center, the PEP extends to heads of state, cabinet ministers, judges, senior political party officials, senior military officials, members of royal families, and public representatives.
In September, News24 reported that a draft economic recovery action plan, before the National Council for Economic Development and Labor (Nedlac), proposed “to extend the prohibition of the prohibition of public servants doing business with the state to People Politically Exposed (PEP), according to the definitions of the Law of the Financial Intelligence Center “.
Amid widespread reports of corruption surrounding emergency procurement during the Covid-19 pandemic, there has been an intense debate over whether family members of ANC leaders should be able to do business with the state. ANC Secretary General Ace Magashule has long advocated for his sons who earn millions through state takeovers. If Nedlac’s plan is accepted, this would have a profound effect on the relatives of the politicians who coined it from the state.
READ | Politically exposed persons will be barred from doing business with the state if the draft plan is approved
Last week, the Hawks pounced on several business people who have strong ties to ANC leaders, most notably Thoshan Panday, an old friend of former President Jacob Zuma and Edwin Sodi who reportedly donated money to leaders. senior ANC officials, including ministers Zweli. Mkhize and Thulas Nxesi.
“The work that law enforcement agencies are doing is commendable and we reaffirm that we must leave no stone unturned in the treatment of crime and corruption,” Ramaphosa said, adding:
“The ANC is committed to an approach that balances the need to detect the movement of bribes, the use of financial systems to launder illicit money flows, and human rights needs to enable honest living, including engaging in business activities. where a citizen has ceased to be entrusted with an outstanding public function “.
He said the ANC took note of the economic and social impact of illicit financial flows, anti-competitive behavior, protection scams, organized crime, and the destruction of public infrastructure.
READ | Mmamonnye Ngobeni appears in court for alleged corruption
To promote a process of social pact and mobilization, he said that a united ANC was essential with a strong and active presence at the community level and in all sectors of society.
Renewal
“Therefore, the strengthening and renewal of the ANC remains an absolute priority and a precondition for the deployment of capable cadres as public representatives and in the state. The ANC is committed to ensuring the effective incorporation of the gender perspective in all aspects of the economic recovery and reconstruction plan, through the participation and mobilization of women at all levels. “
He said that most of the Lekgotla was dedicated to talking about the implementation of economic plans. The ANC and the government have pledged to mobilize society behind the plan for reconstruction, growth and economic transformation, saying: “The broad framework from which has emerged from the interactions at Nedlac.”
READ | Cosatu talks tough to Ramaphosa, stop dealing with criminals and hit corruption
“Such a plan can only be implemented and have the desired results if all sectors of society mobilize to play their role in its implementation and monitoring. Now is the time for active citizens to make this work.”
Strike
This comes as the largest ANC affiliate and Ramaphosa allies in the South African Congress of Trade Unions (Cosatu) are embarking on a nationwide strike against corruption, layoffs and unemployment, gender-based violence and attacks. to collective bargaining.
Cosatu recently spoke out against Ramaphosa and criticized his government for acting too slowly against allegedly corrupt members of the party.
During a press conference in August, Cosatu Secretary General Bheki Ntshalintshali said that while he welcomed Ramaphosa’s rejection of corruption, he could only judge the results and not the intentions.
He added that aggressive prosecution was the only reliable vaccine to cure the corruption virus, not speeches, letters or public proclamations.
“President Ramaphosa will not win the fight against corruption if he remains averse to confrontation, he needs to start wielding a great ax if he wants workers to trust and believe in him.”
“Half the purpose of the criminal justice system is deterrence, so law enforcement agencies must target corrupt CEOs, senior managers and politicians and send them to prison.”
This is the first time that Cosatu has shown signs of a lack of trust in Ramaphosa since he was elected president of the ANC.
The union federation was his strongest ally in his campaign for the party presidency that led to Nasrec’s landmark conference, which saw him elected.