By Lehlohonolo Lehana.
Business Leadership South Africa (BLSA) says that allegations by former Eskom chief executive Andre de Ruyter needs to be explored because it is in the public interest to know what is going on.
According to BLSA CEO Busi Mavuso, the allegations made by De Ruyter warrant a full investigation, adding to the call from various sectors that he file a formal case.
During an interview with E-tv’s Annika Larsen last week (21 February), De Ruyter made several explosive allegations about entrenched corruption at Eskom and within the government, including that a senior politician was involved in dodgy dealings – and a government minister was well aware of this.
He also alleged that corruption was entrenched within the governing ANC, and that moves were being made to “water down” controls around the $8.5 billion JET deal – which involves countries like the US, UK, France, Germany, and the European Union funding South Africa’s move away from coal energy.
Mavuso said that these allegations could spook the nations involved in the deal.
“Although unproven, De Ruyter’s allegations are serious. BLSA hopes that the JET-IP package is not now at risk, with the countries that are funding it already concerned about South Africa’s international positioning.
“The US House of Representatives, as an example, is considering a resolution filed by Republicans last week asking the Biden administration for ‘a thorough review of the current and future status of the United States-South Africa bilateral relationship.”
Mavuso said that South Africa’s JET-IP package is being funded by countries and regions that do not tolerate corruption.
“These are not the sort of investors that will tolerate any hint of corruption, particularly at the very top. Many are governed by their own laws such as ‘know your client’ that demand due diligence is conducted to ensure there is no corruption involved with transaction counterparts.
“These regulations are driven by the international Financial Action Task Force (FATF), the very institution that has adjudged our systems to combat money laundering, including our ‘know your client’ regulations, to be sub-par.”
The FATF on Friday (24 February) put South Africa on its global ‘grey list’ – a list of countries that are being monitored for having sub-standard protections against money laundering and terrorist financing.
Despite attempts by the government to push through and fast-track a host of new laws to address concerns raised by the FATF in 2021, it was not enough to keep South Africa off the list, as many deficiencies persist. The country now has until 2025 to address these issues to try and get off the list as quickly as possible.
As alluded to by BLSA, being on the grey list puts many financial agreements between South Africa and other nations at risk, as stricter due diligence will now have to be completed before financing can be approved.