Former government official Frank Chikane. Picture: Antoine de Ras/African News Agency (ANA)
Former government official Frank Chikane. Picture: Antoine de Ras/African News Agency (ANA)

LIVE FEED: State Capture Inquiry November 19, 2019

By Zintle Mahlati Time of article published Nov 19, 2019

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Johannesburg - Former government official Frank Chikane will take the stand at the state capture inquiry on Tuesday morning.

Chikane served as director-general in the presidency under former president Thabo Mbeki.

He has been part of a group of ANC elders that have been outspoken about state capture. As former DGs they had drafted a memorandum calling for the establishment of the state capture commission. 

On Monday the commission heard from former UK MP Lord Peter Hain. 

He said private institutions such as banks, public relations firms and consultancy firms played a key role in aiding the Gupta family transfer their funds around the world. He added that international corporations played a key role.
"It (state capture) was facilitated by the massive complicity of international financial institutions and other institutions, as well as other foreign governments,” he said. 
He highlighted British banks such as HSBC and Standard Chartered which the Guptas used to channel money. He said these institutions assisted the family with financial assistance and also an international pipeline.


"And they seemed to have assisted the Guptas in two main ways, namely opening accounts and providing access to their international pipeline. They've granted them an open door to an international network through depositing money into local accounts," he said.
Hain said they could not deny that they never knew the source of the funds as there were plenty of red flags about the family. 
"They should have spotted these red flags earlier and should have dealt with them immediately,” he said. 
He said banks and auditing firms should be the first-line defence against money laundering as they have the information that law enforcement agencies do not. 
"The point is they have access to client data that regulators do not have. They are best placed to monitor and report illicit financial activity. They should be doing the jobs that regulators and law enforcement cannot do. They should be the first line of defence,” Hain said. 


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