Professionals forum urges Zuma not to sign financial bill

PRESIDENT Jacob Zuma has confirmed that the Progressive Professionals Forum has petitioned him not to sign into law the Financial Intelligence Centre Amendment Bill, which will clamp down on politically exposed people when they conduct transactions with banks.

Zuma said yesterday that he was still applying his mind to the objection raised by the forum, which was led by former government spokesman Mzwanele Manyi.

The legislation, which was approved by Parliament a few months ago, is part of the broader framework by governments in the world to deal with illicit financial flows.

The National Treasury and the SA Reserve Bank came to make presentations in Parliament on this problem during hearings on the matter.

The Financial Intelligence Centre was also made presentations before MPs.

Parliament also acknowledged this was a global problem and South Africa must clamp down on it. The National Assembly said it was important to co-operate with the world on illicit financial flows.

Zuma’s spokesman Bongani Ngqulunga said it was not unique for the president to sit on the bill for some time.

He said there were a number of bills that Zuma had not signed into law. The banks and other financial institutions are believed to have used part of the current legislation to cut ties with the Guptas.

Mineral Resources Minister Mosebenzi Zwane has been rapped over the knuckles for saying the cabinet has taken a decision that a judicial inquiry will be established to investigate the banks for cutting ties with the Guptas.

He has since gone to ground without saying how it came about that he issued such a strong-worded statement against the banks and the National Treasury and the SA Reserve Bank without getting approval from Zuma and the cabinet.

Ngqulunga said Zuma was looking at the Financial Intelligence Centre Amendment Bill.

Approval “The president received an objection to the signing of the bill from the Progressive Professionals Forum,” Ngqulunga said. “When the president is petitioned not to sign a bill, he has to consider the merits of such objection focusing mainly on whether the interested parties raise valid constitutional issues.”

Manyi said the bill in its current form was unconstitutional. Zuma has not indicated how soon he will sign the bill into law. It has been sitting with him since May this year when it was passed by the National Assembly.

It was backed by all parties in the National Assembly, which said it would clamp down on illicit financial flows.

The banks would have a crucial role to play in checking on the politically exposed people when they transact in the banks.