Sars have confirmed they could find no documents relating to the Phala Phala transaction Photo Myzone
South Africa – Just like the fly on a buffalo’s back, the Phala Phala story will not go away. According to the South African Revenue Service (Sars), the $580 000 (about R10 million) that was stolen during a burglary at the Phala Phala game farm in 2020 was not declared when it arrived in South Africa.
This information was obtained by the Democratic Alliance (DA) directly from Sars after they submitted a request for the information in terms of the Promotion of Access to Information Act (PAIA). The party had asked whether the US dollars had been declared on arrival as per Sars’ customs policy on excess currency. The policy clearly states that every person must declare “foreign currency upon arrival in the country”. Failing to adhere to it is an offence and one may be criminally prosecuted.
Phala Phala was not a legitimate business transaction
When the news first broke, President Cyril Ramaphosa made every attempt to assure South Africans that everything was above board. The sale of the cattle was legitimate and there were no illegal actions carried out. However, John Steenhuisen, DA Federal Leader, said the information gained from PAIA proves the deal was illegitimate.
“Clearly from the Promotion of Access to Information Act result, that money had not been declared at the ports of entry and therefore this was not a legitimate business transaction. The dollars were in the country unlawfully and I think this is also backed up by the fact about how the money was handled once it was handed over to Mr Ramaphosa’s operation. If it was a legitimate business transaction, it would have been banked. It would have been converted into rands and would have reflected in the books of the operation.”
Instead the money was moved from the safe, in its dollar form, stuffed into couch which is not what should happen if the deal was legitimate, added Steenhuisen. To him, these actions coupled with the fact it wasn’t reported when it was stolen, shows there was some knowledge that the money was dirty and couldn’t be handled normally.
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The DA’s PAIA request
Ramaphosa revealed to parliament’s Section 89 independent panel that he received the $580 000 from Hazim Mustafa, a Sudanese businessman, as payment for cattle. All seemed well and normal when Sky News interviewed Mustafa in December last year. He provided what he said was the declaration form to reporters. He did not let them film the documents or make a copy of it. Although he claimed it was his declaration form, Sars informed the DA that after taking the reasonable and necessary steps “the record does not exist and/or cannot be found”.
“Clearly there was no such declaration. It’s very evident by the fact that Sars, which as any taxpayer would know, is very thorough when it comes to administration and documentation. Particularly when you owe them money or there’s an obligation on your part. I don’t think the record exists. I don’t think it ever has existed and I think this is all part of the tissue of lies that the president built around the Phala Phala matter to try and weasel out of it and escape accountability.”
What this means for South Africa
This comes after the Constitutional Court denied access to Ramaphosa to challenge the findings of the Phala Phala report. The DA has called for an ad hoc committee to be created in parliament because it is important the truth on this matter is found out, said Steenhuisen. Furthermore, he believes this new revelation does not help South Africa in its matter to get off the greylist.
“One of their [Financial Action Task Force] chief concerns was the fact that South Africa does not monitor effectively financial flows that could be the proceeds of organised crime or of international crime in the country. Here we have the very problem being exemplified by none other than the president’s conduct in this particular matter. This money was not accounted for coming into the country, it was not banked into the system, it wasn’t declared to The Reserve Bank and the FICA requirements were not followed.”
Accountability must be fought for and the president cannot be held to a different standard than other citizens, Steenhuisen stressed. It is of utmost importance the matter is handled properly and Steenhuisen stressed he would ensure proper procedures are carried out.
To hear what John Steenhuisen said about the cabinet reshuffle, listen to the discussion here:
