Finance Minister Enoch Godongwana’s budget speech must empower the national prosecuting authority (NPA) and the revenue service to combat state looters, urges Tax Justice South Africa (TJSA).
“Despite the clear and urgent need to tackle tax evasion and illicit trade, our prosecuting authorities are severely underfunded and understaffed,” said TJSA founder Yusuf Abramjee ahead of the budget speech.
The finance minister is expected to table the budget before Parliament at the Cape Town City Hall Wednesday afternoon.
Economists expect the country’s energy crisis to take centre-stage when the budget is tabled. Continuous loadshedding resulted in the reserve bank revising the country’s economic growth forecast for 2023 down to a meagre 0.3% from 1.1%.
However, Abramjee said it would be a “costly mistake” to ignore illicit trade that flourished unchecked in the country while focusing on the energy inadequacy.
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‘Hollowed out’ agencies
Abramjee said the finance minister urgently needed to empower the entities in the fight against corruption as they had been hollowed out during the years of state capture. He said this rendered the agencies unable to perform essential functions, much to the detriment of the public.
“They’ve been left ill-equipped to carry out their essential functions and this has had a devastating impact on public finances. It’s clear that urgent action is needed to restore the capacity of these institutions so they can collect the money that will improve the life of all South Africans.”
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Illicit trade
According to Abramjee, approximately R250 million is looted from South Africa by the illicit economy daily. He said this undermined the government and the rule of law, and robbed its people of a brighter future.
“While kingpins in illicit trade amass vast fortunes, honest citizens are being denied the schools, hospitals and essential services they deserve,” said Abramjee.
He warned the failure to tackle illicit trade could lead to further economic inequality, increased poverty and the erosion of public trust in government institutions.
“Minister Godongwana should use his Budget statement on Wednesday to ensure prosecuting authorities are equipped to curb this menace. They must bring the looters to justice, take back their stolen wealth and spend it on the people to whom it rightfully belongs,” he said.
