Mozambique: Corruption cost state €5.8 million in the first half of 2024

According to figures from the Central Office for Combating Corruption (GCCC), the Mozambican state suffered losses of around 405 million meticais (€5.8 million) due to corruption offences in the first half of this year.

The figure is an increase on the same period in 2023, when losses totalling 183.3 million meticais (€2.6 million) were recorded, according to the GCCC, an agency of the Mozambican Public Prosecutor’s Office.

In the first six months of this year, the Mozambican authorities seized assets valued at €589,000 resulting from acts of corruption.

The assets are the result of 705 criminal cases brought in relation to crimes of abuse of office, embezzlement and simulation of competences, according to the GCCC’s balance sheet for the first half of the year.

According to the Public Prosecutor’s Office, in the first six months of the year, the Mozambican state seized 277,617.09 meticais (€4,000), which “were deposited in the Single Treasury Account”.

In the same period, the document from the Mozambican Public Prosecutor’s Office indicates that four properties valued at 39,182,142 meticais (€566,000) and a Hyundai Santa Fé car valued at 1,350,000 meticais (€19,000) were seized.

The GCCC also indicates that in the first half of the year 705 cases were opened, in addition to the 623 that were carried over from last year, totalling 1,328, which represents a reduction of 46.

On 17 June, Lusa reported that Mozambique had recovered more than 2,905 billion meticais (€42.5 million) in 11,000 cases against corruption, terrorist financing and money laundering over the last ten years.

“As proceeds and/or advantages of the illicit activities investigated,” explained the deputy director of the Central Office for Combating Corruption (GCCC), Eduardo Sumana, at the time.

He also said that in the last ten years, the Mozambican Public Prosecutor’s Office has processed 11,030 cases in this area, of which 10,403 have been resolved, corresponding to 94%, and 83 vehicles have also been seized and 56 properties recovered.

The Central Asset Recovery Office in Mozambique recovered more than 1.385 billion meticais (€20.2 million) from illicit sources in the last 12 months alone, in a total of 84 asset and financial investigation cases, according to data from the Public Prosecutor’s Office previously reported by Lusa.

The figure represents an increase compared to the previous period, when an estimated 1,149 million meticais (almost €17 million) worth of assets were recovered, reads a document that takes stock of the work of the Mozambican Public Prosecutor’s Office.

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NATIONAL BUDGET TO GAIN MILLIONS FROM FORFEITED ASSETS

By NOKUNCEDA MAGAGULA | June 18 2024, Eswatini Obsever

The national budget is anticipated to receive a significant boost as assets forfeited by the state from money laundering activities will be injected into the national budget.

In the financial year 2022/23, the ministry of finance’s second quarter performance report revealed that potential money laundered in the country and seized by the State during the quarter under review was valued at E990 million.

The move to inject forfeited assets into the national budget was announced by the United Nations Office on Drugs and the United Nations Office (UNODC) Mariana Dias, during the National InterAgency Coordination workshop, addressing Money Laundering, Terrorist Financing and Assets Recovery.

Although Dias could not divulge the exact amount injected in the 2023\2024 national budget, she mentioned that the funds injected into the national budget were used to empower Eswatini communities.

 “As more assets are recovered or forfeited by the State, more assets are made available to be re-injected into the national budget for the benefit of local communities,” Dias said. She stated that they would like to encourage the continuation of efforts by the government of Eswatini to recover and manage the proceeds of crime.  She said the inter-agency model adopted by Eswatini whereby institutions make efforts to jointly participate in this process would ultimately benefit the members of society and ensure the availability of extra budgetary funding for development initiatives.

 The UNODC representative said Eswatini distinguished itself as a leader in fighting crime in the region.

collaboration

“It is therefore encouraging and indeed an honour to be able to work with you today as you strengthen your inter-agency collaboration in financial crime,” she stated.

She said as a partner in combatting trans-national organised crime, the United Nations (UN) provides assistance to governments in the implementation of various treaties such as the United Nations Convention against Transnational Organised Crime, and the United Nations Convention against Corruption (UNCAC).

“Both of these conventions combat illicit financial flows and encourage member States, such as eswatini, to strengthen the forfeiture of proceeds of crime through their money laundering and asset recovery provisions, amongst others,” she stated.

Dias said when the global community adopted the Sustainable Development Goals in 2015, it recognised that hundreds of millions of people around the world continued to live under highly precarious circumstances such as limited access to healthcare, education, poverty and hunger, unemployment and inequalities.  She said in as much as the SDG Framework provided them with a potentially transformative agenda to provide long-lasting responses to these multi-dimensional challenges facing the world, there was equally a strong recognition that an important pre-requisite for implementing the SDGs was building of strong institutions to foster more resilient states and societies.

Dias said therefore, the UNODC view was that the collaboration by different national institutions was a key element of building strong institutions which would ultimately contribute towards sustainable development.

“In this regard, proceeds of crime have a direct impact on efforts to meet the Sustainable Development Goals, particularly the implementation of target 16.4 that calls on member States to significantly reduce illicit financial and arms flows, strengthen recovery and return of stolen assets, and combat all forms of organised crime by 2030,” she said.

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Further Reading

[i] Prevention of Organized Crime Act, 29 of 2004 (“POCA”) provides measures to combat organised crime, money laundering and criminal gang activities.

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UNODC and ARINSA Host Workshops for Prosecutors and Investigators to Strengthen The Seychelles' Anti-Money Laundering Efforts.

By Staff Writer 13 June 2024 | UNODC Website

In an effort to strengthen The Seychelles' ability to combat money laundering and terrorism financing, the United Nations Office on Drugs and Crime (UNODC) and the National Prosecuting Authority of South Africa as the joint secretariat of the Asset Recovery Inter-Agency Network of Southern Africa (ARINSA) organized two workshops: one for prosecutors and another for investigators. The workshops, which took place from 3-6 June 2024, aimed to build the capacity of investigators and prosecutors in applying effective asset confiscation methodologies and practices.

The workshops were conducted as part of The Seychelles' membership in ARINSA and were made possible through the generous support of the U.S. State Department’s Bureau of International Narcotics and Law Enforcement Affairs (INL). ARINSA is a regional network established to facilitate intelligence sharing and capacity building among Southern African countries in the area of asset recovery. As a member of this network, The Seychelles actively involved and invested in enhancing the capabilities of its asset recovery practitioners. Through this program, UNODC supported the workshop by providing platforms for prosecutors and investigators to enhance their expertise and exchange knowledge on best practices in the field of asset confiscation. Through a combination of theoretical and practical training sessions, participants gained insights into the global transnational nature of asset recovery and the importance of international cooperation.

The Prosecutor Placement Programme (PPP), attended by 27 participants from the Office of the Attorney General, Anti-corruption Commission, and The Seychelles Revenue Commission, focused on enhancing prosecutorial strategies and expertise. Meanwhile, the Investigator Placement Programme (IPP), attended by 8 participants from The Seychelles Police Force, Customs division of The Seychelles Revenue Services, and the Anti-Corruption Commission, aimed to strengthen investigative skills and practices.

Present at the opening ceremony, where participants from both programs convened on the first day, were Attorney General Mr. Frank Ally, Commissioner of Police Mr. Ted Barbe, Commissioner of the Anti-Corruption Commission of The Seychelles Ms. May Desilva, Deputy Commissioner of Police Mr. Francis Songoire, and members of The Seychelles Police Executive Board. During his opening remarks, Commissioner of Police Mr. Ted Barbe emphasized that financial crimes pose a significant threat to communities and The Seychelles as a whole.

Participants in the Prosecutor Placement Programme acquired valuable insights and practical knowledge in areas such as prosecutorial strategies for addressing money laundering cases, effective presentation of evidence in court, understanding and application of relevant legislation, procedures related to unexplained wealth orders, and handling virtual assets and associated legal challenges. Participants in the Investigator Placement Programme learned skills in the basics of asset tracing, collating evidence and joint planning with advocates, beneficial ownership, and other investigation strategies for identifying and addressing money laundering cases.

Commissioner of Police Mr. Ted Barbe during the opening session.

“Asset recovery and fighting money laundering is a global phenomenon and in order to be successful, we need to work together. It is often said that fighting money laundering and recovering the proceeds of crime is a contact sport. Relationships between law enforcement agencies across countries are critical to fighting this crime as well as recovering the proceeds of those crimes. Working together and sharing best practices and lessons learned therefore puts us in a much stronger position,” said Dianne William, NPA of South Africa during the opening ceremony.

Speaking on the lessons learned, Brigitte Valentin from the Revenue Collection and Border Security Unit of The Seychelles Revenue Commission said, “We have been trying to implement the fusion center idea at the airport, but until now it has not been successful. I will take the example provided to my manager, and we will see how to proceed as I feel it would be helpful to us.”

Although the training delivered by South African trainers as part of the peer-to-peer learning offered by UNODC, they explained foreign laws and international standards, customizing the training to the needs of The Seychelles. Attendees were required to bring their country’s asset recovery legislation and cases with them to engage by discussing their particular legal environment during the course of the program.

The two workshops brought great promise for The Seychelles and its efforts to combat money laundering and terrorism financing. By equipping prosecutors and investigators with the necessary tools and knowledge, this collaborative initiative aimed to contribute to a safer and more secure financial environment in The Seychelles and the wider region.

More suspects linked to R2.8bn Ponzi scheme arrested

The long arm of the law has finally caught up with two more suspects implicated in the R2.8-billion BHI Ponzi scheme.

The recent arrests of 54-year-old Sona Pillay and Michael Philip Adam, 55, come after the Hawks’ serious commercial crime investigation put Graig Roy Warriner behind bars.

The 60-year-old Warriner was convicted and sentenced to 25 years imprisonment on 206 counts of fraud and one of contravening the Financial Advisory and Intermediary Services Act for operating an investment scheme without a licence or being registered as a financial service provider.

Michael Philip Adam has been nabbed for his alleged role in a multibillion-dollar Ponzi scheme.

“Pillay was arrested on Friday after he attempted to flee overseas, where he was refused entry and sent back to South Africa, where he found the Hawks’ investigating team waiting for him at the OR Tambo International Airport, while Adam handed himself over on the morning of June 3,” said Hawks spokesperson Colonel Katlego Mogale.

“The pair subsequently appeared in the Palm Ridge specialised commercial crimes court, sitting in the Palm Ridge magistrate’s court.”

She said the Hawks investigation has linked Pillay and Adam to the Ponzi scheme that started in 2008, wherein individuals invested capital to the tune of over R2.8-billion with promises of generating profits exceeding interest of more than 10%.

Losses for investors

“In typical Ponzi scheme fashion, the BHI Trust scheme started to falter and failed to keep up with the promised returns on investment.”

The scheme used capital for payments to investors withdrawing their capital from BHI Trust as fictitious profits. The elaborate misrepresentation of the scheme led to massive losses for the investors.

Warriner has been in prison since his arrest in August 2023, culminating in his recent sentencing, said Mogale.

“It is expected that more individuals will be arrested in this case.”

Suspects remanded in custody

Mogale stated that the Palm Ridge specialised commercial crime court has postponed the case to June 10 for formal bail application, with the pair remanded in custody.

The Gauteng provincial head of the hawks, Major-General Ebrahim Kadwa, has welcomed the arrests.

“We are pleased with the progress made, and we are looking forward to the finalisation of the case,” Kadwa said.

“The public is hereby warned to treat any investment scheme that promises more than usual returns with scepticism.”

Anti-money laundering agency flags terror financing risk in banks

By John Mutua | 20 May 2024 Business Daily

Zimbabwe’s goal to save billions spurs an aggressive crackdown on political criminals

Authorities in Zimbabwe have decided to take more drastic measures against corruption to reduce the losses the nation experiences every year.

The country has decided to crack down on assets illegally obtained and hidden outside the country.

The government is also providing its law enforcement agents with the tools they need to combat graft.

According to a recent report in the Zimbabwean Newspaper, The Herald, the Anti-Corruption Commission of Zimbabwe has decided to aggressively tackle corruption.

The commission aims to do this by seizing all assets acquired corruptly in Zimbabwe and stashed overseas in order to save an estimated $ 1.8 billion lost to graft annually.

As criminals get cleverer, law enforcement agencies are being equipped to handle any new developments, the National Prosecuting Authority and the Zimbabwe Anti-Corruption Commission (ZACC) assured.

Combined efforts from such agencies including the ZACC, the Zimbabwe Revenue Authority, the police force, and more have brought about the recovery of $100 million in assets believed to be proceeds of looting.

The Prosecutor-General, for the International Centre for Asset Recovery (ICAR), Justice Loice Matanda Moyo assured that things would no longer go smoothly for individuals who acquire corrupt wealth and hide it outside the country.

“As Zimbabwe, we have not started reparation of stolen assets which are hidden outside of our jurisdiction. It’s high time we start doing so,” she said.

She then went on to add, “In order to do that we need to understand mutual legal assistance and international cooperation”

Zimbabwe’s Prosecutor-General, Justice Loice Matanda Moyo, and ZACC Chairperson Michael Reza made the statement at a capacity-building session on financial investigations and asset recovery conducted by the International Centre for Asset Recovery (ICAR).

“It is time that we totally eradicate corruption in Zimbabwe and recover the stolen assets. As a result of these illicit flows, governments are left with little or no financial resources to channel towards development and the provision of basic services such as health and education,” Matanda Moyo said.