'Illicit economy hurts SA'
THE illicit economy is costing South Africa 10 percent of its GDP at about R178 billion, Minister of State Security Siyabonga Cwele says
Cwele said the GDP effect came from a study his department presented to the cabinet last year on illegal gold mining. He said the illicit economy posed a threat to the national interest.
“In 2010 we reported the loss in the gold industry amounting to R6.7 billion,” he told the National Assembly during debate on his budget vote.
“We have, with the co-operation and collaboration of other government departments, subsequently scoped the extent of the illicit economy which is estimated to be about 10% of our GDP, quantified to a loss of about R178bn to the economy,” he said.
The illicit economy had the potential to seriously compromise the new economic growth path and was costing South Africa hundreds of thousands of jobs.
The scoping exercise revealed that this economic threat was rife in the mining, textile and tobacco industries, he said.
“These illicit activities create unfair competition to legitimate businesses and industries, erode the corporate tax base, distort trade, violate foreign exchange regulations, and create conducive conditions for espionage.
“This year, the security and economic clusters will focus on attracting and developing specialised skills and sophisticated technologies to counter this illicit economy,” Cwele said.
At a media briefing earlier, director general Jeff Maqetuka said the illicit economy could be “even bigger than we think”, because investigations were still continuing.
SSA RESTRUCTURING GOING AHEAD
Restructuring of the civilian intelligence services into the State Security Agency (SSA) is progressing well following the appointment of Director General Jeff Maqetuka, Minister Cwele said.
“There is no going back to the duplication of the past,” he told the National Assembly.
The process involves the integration of the different agencies, such as the National Intelligence Agency and the SA Secret Service.
Cwele said the SSA’s new structures had been concluded and approved, and the critical posts of chief financial officer, chief information officer, and head of internal audit had been filled.
“In addition, we have tightened up our regulatory mechanism by issuing a single ministerial powers delegation of payments directive and directives on the conditions of service for the agency.”
Due to the different IT systems that were in place, the process of integrating the systems was taking longer than expected to ensure information was secured and migrated properly to maintain accuracy and integrity.
Efforts would focus on addressing the imbalance in gender and ageing personnel profile.
To codify the presidential proclamation of 2009 that created the SSA, preliminary consultations on the State Security Bill were being completed. It would then go to Cabinet for consideration and tabling in Parliament later this year, Cwele said.
SSA FRAUD PROBE COMPLETED
The State Security Agency and Financial Services Board have completed the fraud investigation relating to the management of the SSA’s group life scheme for members, Cwele said.
The investigation found
- there were cases of theft, fraud, and possible corruption by the insurance broker,
- negligence by the insurance company, and
- mismanagement by the intelligence management.
“The insurance company paid a significant ex gratia amount to compensate the fund,” he said.
At a media briefing earlier, he said the loss involved was estimated at about R3 million to R5m.
“Those who committed fraud, particularly the broker, have been referred to the police and National Prosecuting Authority for investigation and prosecution.” In addition, the FSB had withdrawn the insurance broker’s licence and disbarred the owner for five years, Cwele said.
kolobe
Siyabonga Cwele's wife is the one costing us with drug dealing.this guy must step downReport Abuse
bulwazi
Well he hould know his Wife is ONE OF THE CROOKS....@kolobe... I agree with u he must just step down, because we are no longer interested in what he has to say to us.
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CheeseBoy
the rot of fraud and corruption starts from the upper echelons of govt. From our President right down to the illegal dvd seller on the streets its so bad its almost sickening. But somebody gotta live right?Report Abuse
spaceboi
@Knan - exactly!! - its like taking a cr@p and saying "what's that smell!?"Report Abuse
mamame
PLEAAAAASE!Can we have some leaders with integrity? We don't want to listen to ANC crooks anymore!
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CheeseBoy
In a normal society that adheres to good ethics and accountability Cwele's wife's' drug debacle would have resulting in him stepping down from the shame of what his wife did.No, but not these greedy bastards, its life goes on at the trough for them. They and their family members can continue to eat away at our GDP and at the same time cry foul.
Speak for yourself Cwele. You are part of the problem you speak of. rubbish.
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AusiOprah
Crime pays in SA .lets take copper theft as an example.In the olden days you could not even dream of illegal mining.You would die in your dreams just by thinking about it.They would hang you in broad daylight for everyone to see as an example.Report Abuse
LBS
Minister of State Security Siyabonga Cwele MUST step down!The actions of his wife and lack of action by himself has lost him ALL credibility.
We need someone in charge who has integrity and can be respected.
Siyabonga Cwele is NOT this person!
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Mzabalazo
CheeseBoyYou deserve a kiss, we are not a normal society,that is why we have a tainted president,who cannot even watch his trousers,we are not a normal society when the majority of our people see it been normal for Khulubuse a frmr taxi driver onwing a mine and billions of rands.How can we be a normal society when a 28 yrs old son of a president with no known prior achievements in now a billionniare, before even his father has finished his first term.How easy can it be to be a billionaire. We cannot be normal indeed when the public protector is been bullied by the police force for her corruption findings on the police commissioner dealing with Roux. Yes we cannot be a normal society when an ex police commissioner is been tried for curroption and replaced by another tainted police commissioner.This is not a normal society at all,because it turn a blind eye when the relatives of the freedom fighters(Khulubuse Zuma and Zondwa Mandela) are not paying workers in Aurora mines and leaving there destitude.sies,we are far from been a normal society.
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