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News from Member | Failing to Prevent Corruption Now a Criminal Offence in South Africa
In an important move aimed at combatting the deep-seated issues of corruption and money laundering within South Africa, a significant recommendation from the State Capture Commission has been translated into law. The enactment holds individuals criminally accountable should they fail to prevent corruption.
The recently ratified Judicial Matters Amendment Bill introduces an amendment to South Africa’s primary anti-corruption legislation, the Prevention and Combating of Corrupt Activities Act (PRECCA). This addition forms a new clause, creating an offence for failing to prevent corrupt activities.
Under this new provision, members of the private sector or incorporated state-owned entities would face criminal liability if individuals associated with them, such as employees or other third parties, engage in providing, agreeing to provide, or offering any form of gratification to another person to obtain or retain business or an advantage for that member.
Penalties for non-compliance include fines or imprisonment. According to forensic experts at ENS Africa, Steven Powell and Adrian Roux, the introduction of this new offence marks a significant shift in South Africa's anti-corruption legal framework, aligning it with international standards.
The experts emphasized that the new legislation addresses valid concerns regarding the government's pace in implementing recommendations from the State Capture Commission. They believe it will provide further momentum to ongoing efforts to persuade the Financial Task Force to remove South Africa from the 'Grey List'.
ENS Africa, a platinum member of the French South African Chamber of Commerce and Industry (FSACCI), has been actively involved in initiatives addressing corruption. Recently, Steven Powell, a forensic expert at ENS Africa, was one of the speakers at the "Mapping South Africa's Path in 2024" online seminar, hosted by FSACCI in partnership with ENS and Coface on Tuesday morning, April 9, 2024.
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