Will the chickens come home to roast?

Confidence is low, growth is sluggish and the emigration levels are soaring. Despite the gloom and doom, Legalbrief reports that there have been significant signs of hope as the country seeks to be reclaimed from the formidable state-capture forces. And the authorities – inspired by a shake-up at the top levels of crime management – are now setting their sights on the many fugitives who have fled to safer climes. This issue is unpacked by JP Landman in an analysis on the News24 site. He points out that the ‘top three at the NPA have departed and the new director, Shamila Batohi, who has experience at the International Criminal Court in The Hague, has returned to SA to take up the baton. ‘At the Hawks both the former head and acting head have been fired and replaced by the soft-spoken and highly regarded general Godfrey Lebeya.’ Landman adds that Ramaphosa pledged to target the ‘bad guys’ and ‘that is certainly happening’.

Legalbrief reports that there have been some encouraging signs over the past few days (and good reason for the many expat suspects to be looking over their shoulders). SA businessman Tim Marsland – alleged to have fleeced nearly R280m from Botswana’s Public Officers Pension Fund in a money laundering scam – will remain behind bars pending an extradition hearing, despite another attempt by his lawyers to secure his release. A Times Select report notes Marsland – considered a fugitive by the Botswanan Government – was arrested by Interpol agents while trying to board a flight to Germany in July. At the helm of investment firm, Capital Management Botswana, Marsland and his business partner were allocated nearly R700m by the fund in 2016, with an agreement that the money would be bound for private equity investments in the country. Botswanan authorities allege Marsland laundered the money through a raft of companies to acquire wealth for his personal benefit. Marsland appeared before Magistrate Sagra Subroyen in the Kempton Park Magistrate’s Court last week.

And the Gauteng High Court (Pretoria) has ordered the forfeiture of around R101m hidden in two Israeli bank accounts by personal injury lawyers Ronald and Darren Bobroff as it found the money to be the proceeds of crime, according to investigative reporter Tony Beamish in a report on the Moneyweb site. The Asset Forfeiture Unit froze the money in 2017 after the Bobroffs fled to Sydney to evade the Hawks. They may face a range of criminal charges related to the overcharging of their clients through illegal fee agreements, tax evasion, theft, money laundering and fraud. The Bobroffs claimed they had taken advantage of a Reserve Bank Exchange Control Special Voluntary Disclosure Programme (SVDP), which came into operation in February 2016, to transfer money from SA. They received approval in December 2018. It is unclear whether the SVDP application was made before the July 2017 freezing order. The report notes that no mention is made of the Bobroffs’ substantial assets in Australia and elsewhere or at what stage the SA authorities are at with these investigations.

Another wanted man who has settled in Sydney is Barry Tannenbaum, who orchestrated SA’s biggest Ponzi scheme (about R12.5bn). Legalbrief reports that he snared more than 880 investors allegedly by promising high returns linked to pharmaceutical imports. Although arrest warrants have been issued for both Tannenbaum and his former partner Dean Rees –who is believed to now live in Switzerland – SA authorities have never lodged a formal extradition requests for the pair. Tannenbaum has been quoted (in the Australian media) as saying ‘I’m still innocent, obviously, until proven guilty’. Also now living in Australia are South Africans Edward Dutton who was involved in a R205m forex scam, and John Stratton who was accused of being involved in the murder of Brett Kebble. This despite the fact that SA does have an extradition treaty with Australia. The other countries SA has extradition agreements with are Argentina, Botswana, Lesotho, Malawi, Swaziland, the US, Canada, Israel, Egypt, Algeria, Nigeria, China and, perhaps most notably, India and the UAE.

After all, the Gupta brothers, Ajay, Atul and Rajesh, are believed to be in Dubai, where they own property and businesses. The National Assembly last year approved the signing and ratification of an extradition treaty with the UAE which could see the Gupta brothers brought to book for state capture allegations. A report on the News24 site notes that the step was the culmination of eight years of negotiations. Until last year, the only guarantee that the UAE could provide is ‘mutual legal assistance’ where the two countries agree to work together on gathering and exchanging information to enforce laws. Although the Guptas are from India, it is highly unlikely any of them will now flee there, given the extradition agreement in place with SA.