South Africa

State Capture: Lord Hain cautions British banks not to threaten SA whistleblowers

By Marianne Thamm 13 December 2017

Labour Lord Peter Hain, during a UK parliamentary debate this week on the Committee Stage of the Money Laundering Bill, revealed that the Financial Conduct Authorities had made contact with South African whistleblowers with regard to the implication of HSBC in money laundering for the Gupta family. Hain also warned banks that they should not threaten South African whistleblowers who had provided authorities with evidence. By MARIANNE THAMM.

Hain has now placed on record that South African whisteblowers had been contacted by the UK Financial Conduct Authority with regard to allegations of money laundering by the Gupta family through British domiciled banks and financial institutions.

Hain added his name in support of the amendments to the Bill which presses for greater safeguards and extra parliamentary scrutiny of banks.

He said that banks and London had “an appalling record on money laundering – it gives me no great pleasure to say that”.

He added that the UK might pride itself on having “one of the best centres of finance in the world, and it is a tremendous source of employment, which is important. However, there is a record of money laundering that simply requires extra parliamentary scrutiny, which is why this group of amendments is so important.”

His comments came in the wake of an announcement that HSBC has been relinquished of the penalties that could have applied in the United States of America for similar allegations. “That is good news for a British bank that has a global footprint, and for its many employees here in Britain,” said Hain.

He said the initial stance of banks and other British-based companies, like Bell Pottinger, had been to deny allegations of money laundering, then admit and then apologise.

For example, HSBC, discovered several accounts held by the Gupta brothers, who are South African associates of President Zuma’s family, and it has closed them down, which is welcome.”

However there has been “a steady stream of allegations against mainly British companies: Bell Pottinger and KPMG, and then McKinsey, which is an American-based company with a presence here … I caution them that with this disease of money laundering it is better not to deny in the first instance.”

Hain thanked the Financial Conduct Authority for the manner in which it had engaged with the issue.

I can report to the House that at least one whistleblower who has been supplying me with information from South Africa has engaged directly with the FCA — it has been a positive experience.”

He warned financial institutions involved, including HSBC, Standard Chartered and the Bank of Baroda, that “if any witch-hunting of those responsible, or of the brave, courageous people in the South African governmental system who have also been supplying me with information (happens), I will name the institutions involved and identify the individuals as having suffered that persecution.” DM

File Photo: The new Welsh Secretary Peter Hain departs 10 Downing Street following a cabinet meeting in London, 09 June 2009. EPA/ANDY RAIN.


Watch Pauli van Wyk’s Cat Play The Piano Here!

No, not really. But now that we have your attention, we wanted to tell you a little bit about what happened at SARS.

Tom Moyane and his cronies bequeathed South Africa with a R48-billion tax shortfall, as of February 2018. It's the only thing that grew under Moyane's tenure... the year before, the hole had been R30.7-billion. And to fund those shortfalls, you know who has to cough up? You - the South African taxpayer.

It was the sterling work of a team of investigative journalists, Scorpio’s Pauli van Wyk and Marianne Thamm along with our great friends at amaBhungane, that caused the SARS capturers to be finally flushed out of the system. Moyane, Makwakwa… the lot of them... gone.

But our job is not yet done. We need more readers to become Maverick Insiders, the friends who will help ensure that many more investigations will come. Contributions go directly towards growing our editorial team and ensuring that Daily Maverick and Scorpio have a sustainable future. We can’t rely on advertising and don't want to restrict access to only those who can afford a paywall subscription. Membership is about more than just contributing financially – it is about how we Defend Truth, together.

So, if you feel so inclined, and would like a way to support the cause, please join our community of Maverick Insiders.... you could view it as the opposite of a sin tax. And if you are already Maverick Insider, tell your mother, call a friend, whisper to your loved one, shout at your boss, write to a stranger, announce it on your social network. The battle for the future of South Africa is on, and you can be part of it.


Please note you must be a Maverick Insider to comment. Sign up here or if you are already an Insider.

Days of Zondo

Fikile ‘Fearfokkol’ Mbalula tripped up by semantics of his Gupta-fix tale

By Jessica Bezuidenhout


Dark Day

Zapiro 17 hours ago

An accountant named Kushim was the first recorded name in history.