LIVE: David Mabuza to detail SARB IFF strategy
JOHANNESBURG - Deputy - President, David Mabuza, who is the new leader of government business, will face Parliament's National Assembly in his maiden address on Tuesday.
The Presidency says the questions posed to the Deputy President for oral reply are just one of the mechanisms utilised by Parliament to hold the National Executive accountable.
This will be the first time the Deputy President will respond to questions in the National Assembly since his appointment to the position of the country's Deputy President last month.
In his brief on government’s strategy to radically transform the economy Mabuza did not mince words when he said, "we can no-longer protect the status quo, land must be given to its rightful owners".On c apping capital flow violations , Mabuza said, "We are living in a world that is constantly changing, so more improvements will be ongoing, but currently we must do what we can as a country."
EFF Deputy President Floyd Shivambu quizzed Mabuza on the steps the Presidency will take to enable the South African Reserve Bank to fight and ensure that the country as well as the public purse do not continue to bleed due to illicit financial flows and profit sharing.
Mabuza described measures by the Reserve bank, SARS, the Financial Intelligence centre and all law enforcement agencies as seamless". He said the government had implemented a number of interventions to enable the fight against IFF's.
He said SARB monitored inflows and outflows through administration of exchange controls in terms of a delegation from the Ministery - to the extent that the Reserve bank and the Financial Intelligence Center identified "any" criminal violation.
"They report such activities to our prosecuting authorities over and above what they do themselves. The Reserve bank and SARS work closely together to monitor the movement of money, applications for cross boarder transactions often require tax clearance by SARS to ensure that tax risk are being reduced," Mabuza said.
He added that the relationship between the two state entities resulted in attempts to move capital offshore were being reduced."Yes, much more needs to be done in this respect, however, we are yet to see criminal justice responses and consequences to curb this crime," Mabuza said.
The Deputy President said government had "generated sustained cooperation necessary to tackle the problem at a multinational level but when pressed by MP's to qualify his statement as South Africa currently does not have laws which punish or penalise tax avoidance, Mabuza did not directly answer the questions posed.
"Deputy President, I don't know which institutions you are talking about, because no official interaction with the South African Reserve bank and financial services center and SARS - they pointed that they are not doing anything about tax based erosion and you are saying that are working seamlessly," Shivambu said.
Mabuza's response was a reference to Ramaphosa's #SONA2018 promise to establish a commission on tax administration, which he says will look to where gaps are and how to address them.
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