NPA and Hawks Collaborate with Private Sector to Tackle State Capture Cases and Greylisting Threat

In a significant move to address the complex state-capture corruption cases that have plagued South Africa, the National Prosecuting Authority (NPA) and the Directorate for Priority Crime Investigation, commonly known as the Hawks, are teaming up with the private sector. This partnership aims to bolster the country’s efforts to successfully prosecute cases of money laundering and terrorism financing, which is crucial for South Africa to be removed from the Financial Action Task Force (FATF) grey list by the January 2025 deadline.

The FATF Grey List Challenge

Being on the FATF grey list has serious implications for South Africa, affecting its international financial reputation and increasing the scrutiny of its financial systems. The government recognizes that to be delisted, it must demonstrate effective prosecution of financial crimes, particularly those linked to state capture. The Hawks have already identified 20 priority cases that involve money laundering and terrorist financing, and they are now working closely with the private sector to ensure that these cases are successfully prosecuted.

Private Sector Involvement: A Double-Edged Sword?

The involvement of private attorneys in prosecuting these cases has been a topic of debate. Ndaedzo Nethonzhe, a former senior political reporter and political analyst, highlighted the risks associated with outsourcing legal expertise. He pointed out that while the NPA lacks sufficient staff with experience in forensic and financial crimes, relying on private sector lawyers could pose potential conflicts of interest.

“South Africa, particularly the NPA, lacks lawyers with experience in forensic and financial crimes. They are unable to have enough staff, and therefore, need to outsource services. However, this poses a risk because independent lawyers may have previously represented the accused, raising questions about their objectivity,” Nethonzhe stated.

He further emphasized that for the NPA to operate independently of private sector assistance, a substantial budget increase would be necessary—something that is not currently feasible.

Financial Constraints and Human Resources

NPA’s National Director of Public Prosecutions, Shamila Batohi, has voiced concerns over the lack of financial resources, which directly impacts the NPA’s ability to hire skilled personnel. “Employing lawyers with expertise in forensic investigations or financial crimes requires significant financial resources,” Nethonzhe explained. This financial shortfall forces the NPA to rely on private sector collaboration, despite the inherent risks.

Safeguarding Integrity in Prosecutions

To mitigate potential conflicts of interest, legal commentator Nthabiseng Dubazana of Dubazana Attorneys stressed the importance of thorough vetting before engaging private attorneys. She cautioned that if a private attorney has previously represented the accused, there could be a lack of objectivity or potential bias, which could compromise the integrity of the prosecution.

However, Dubazana also noted that the decision to hire private attorneys reflects the NPA’s proactive stance. “Hiring private attorneys doesn’t impact public confidence negatively. Instead, it shows that the NPA is not waiting for budgets to be approved but is choosing to be proactive,” she commented.

A Call for Long-Term Solutions

Both experts agree that the ultimate solution lies in equipping the NPA with the necessary financial and human resources to handle these complex cases internally. “In the long term, the NPA must be well-equipped to hire people with the necessary expertise and have the financial resources to pay them,” Nethonzhe emphasized.

While the collaboration with the private sector is a necessary step in the short term, it is clear that for South Africa to maintain the integrity of its judicial system, the NPA must be empowered to function independently and without the need for external assistance.