Phala Phala scandal: ATM says prosecution decision undermines principles of justice
The African Transformation Movement (ATM) has rejected the decision by the National Prosecuting Authority (NPA) not to prosecute the President or the head of his presidential protection team for the robbery at the Phala Phala game farm.
This after the NPA confirmed on Thursday that it will not prosecute Cyril Ramaphosa or the head of his presidential protection services, Major General Wally Roode, for the theft of money from the president’s Phala Phala farm.
In 2022, former spy boss Arthur Fraser accused Ramaphosa and Roode of attempting to cover up the theft of thousands of US dollars from the farm in February 2020.
In 2023, a Section 89 Independent Panel sanctioned by Parliament found that Ramaphosa had a case to answer.
On Thursday, Limpopo NPA boss Mukhali Thenga said there wa no reasonable prospect of a successful prosecution based on evidence contained in the docket.
The Public Protector also exonerated the president from any wrongdoing in the matter.
ATM spokesperson Zama Ntshona says the NPA's dismissal of charges against the President reflects a gross failure to consider key evidence and the legal obligations under the Prevention and Combating of Corrupt Activities Act (PRECCA).
"Section 34(1) of this Act mandates that any person in a position of authority who knows or suspects that corruption or related crimes involving R100,000 or more have occurred must report such matters to the Directorate for Priority Crime Investigation (DPCI).
"Furthermore, according to Section 34(4)(e), the responsibility to report lies with the member of the Close Corporation, and Mr. Ramaphosa, as the sole owner of Ntabanyoni Enterprise, cannot evade liability for failing to report. The President’s inaction constitutes a clear violation of this law, as highlighted by the complaint brought forth by Arthur Fraser.
"In South Africa, the legal requirements surrounding the possession of large amounts of cash are explicit. The Financial Intelligence Centre Act (FICA), under Section 28, stipulates that any cash transaction exceeding R25,000 must be reported to the Financial Intelligence Centre (FIC). The President has, by his own admission, violated this law by holding $580,000 in cash at his Phala Phala farm, an amount significantly exceeding the legal threshold."
Ntshona adds that the NPA's decision failed to address the issue of the undeclared foreign currency found on the President’s property.
The South African Reserve Bank (SARB) confirmed that the Phala Phala dollars were never declared, which constitutes a clear violation of South Africa’s tax laws and the Reserve Bank’s Exchange Control Regulations.
"It is incomprehensible that the NPA could overlook such blatant violations and allow the President to evade scrutiny simply because they believe the available evidence does not offer a “reasonable prospect” of conviction. This raises serious concerns about a biased application of the law that favors politically connected, wealthy, and powerful individuals.
"We urge the NPA to prioritize transparency and accountability by making public the documentation and evidence that led to their decision not to prosecute. It is essential that the NPA demonstrates that no one is above the law and that all allegations of corruption and misconduct are addressed with the seriousness they warrant."
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