SA to probe locals’ offshore accounts

Khulubuse Zuma

Khulubuse Zuma

Published Apr 6, 2016

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JOHANNESBURG: The National Treasury said yesterday the country’s financial services agencies would investigate South Africans who may be linked to offshore bank accounts by having moved funds illegally out of the country.

This follows the global leak of offshore account details, dubbed the Panama Papers, in which 11.5 million files from the database of Panamanian law firm Mossack Fonseca were leaked to media organisations.

They revealed an extensive network of leaders, businesses and celebrities hiding money in tax shelters around the world.

Among the South Africans named in the leaks were President Jacob Zuma’s nephew, Khulubuse Zuma, who was linked to a company called Caprikat, which scored a R100 billion oil deal in the Democratic Republic of Congo. Businessman Fana Hlongwane, who was linked to the controversial arms deal, was also named.

Khulubuse has dismissed the allegations, saying there was nothing new with his links to Caprikat. He denied he held an offshore bank account.

The Treasury said holding funds in an offshore bank was by itself not illegal, as long as the necessary approvals and disclosures were made to the relevant authorities.

The Treasury said relevant agencies like the SA Revenue Service, the Financial Intelligence Centre and the Reserve Bank would investigate South Africans who may be linked to offshore bank accounts.

The Treasury said a special voluntary disclosure programme was proposed in the 2016 Budget to make it easier for non-compliant individuals and firms to disclose assets held and income earned offshore.

The Treasury said South Africa was at the forefront of international work on the exchange of information. – ANA

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