It was very concerning to read recently in a Sunday newspaper about the shocking budget cut for the National Prosecuting Authority. This at a time when crime is escalating and convictions and successful prosecutions are decreasing.
Just looking at the R2,2 billion fraud case against Matshela Koko being struck from the roll this week due to unreasonable delays, yet another example of the negative outcomes of an underfunded Prosecuting Authority.
The slow pace is not necessarily through a lack of intent, but more a dearth of skills, particularly in specialist forensic auditing and digital and data analysis – but also in the investigation and prosecution skills required in complex financial crime.
The Hawks operate at 53% staffing levels, although that’s better than the police detective services which averages just over 40%, but only 13.8% of commercial crime investigators, according to a parliamentary reply.
In the business section of the same paper there is a shocking disclosure of how much revenue Sars is not being paid due for the sale of illicit and illegal cigarettes and alcohol. R20 billion from illicit tobacco sales (making up 50 – 60% of sales) and illicit sales of alcoholic products making up 30% of total sales.
So, the government is losing out on more than R30 billion a year in lost taxes from the illicit and illegal sales of cigarettes and alcohol (resulting in significant job losses especially in the cigarette industry – and shrinking the tax payer base) and then decides to cut the budget for the NPA in order to save money!
This is one very confusing and convoluted way to address the explosive crime, decreasing convictions and troubling cash flow crisis for this government.
