Forfeiture regulations reviewed by Ministry of Finance

The Ministry of Finance has finalized reviewing regulations that will facilitate the operationalization of the Forfeiture, or Confiscation, fund.

Once the regulation is operational, government will have a chance use K1.5 billion it acquired from proceeds of corruption and money laundering.

Due to lack of guiding principles government has been failing to use the money.

Betchani Tchereni Secretary to the Treasury (ST) said they are done with the review of the regulations. Because the Ministry of Finance appreciates the importance of having the regulatons.

He added that upon thorough review of the regulations that will operationalize the fund, they intend to meet in mid-May.

Tchereni said an exact date will be communicated by the secretariat, which is FIA (Financial Intelligence Authority).

Masautso Ebere FIA spokesperson said the status remains the same, with June 2024 as the targeted timeline for the completion of the process.

Ebere said they are still dealing with process activities to arrive at the outcome (issuance and implementation of the regulations)

Masauko Chamkakala who is also the Director of Public Prosecutions confirmed separately that guidelines on how to use the 1.5 billion, which is stuck in the Confiscation Fund after being recovered from corruption suspects, are ready.

Chamkakala said “the technical committee met and worked on the Draft Regulations of the Fund and forwarded the same to the Secretary to the Treasury. They are waiting for the ST to call for meeting of the National Committee (that has been) working on this.

The money, which is in excess of K1.5 billion, as well as other assets that are under the Confiscation Fund were recovered from corruption and Cashgate suspects.

Chairperson of Human Rights Defender Coalition, said failure to use the same has riled Human Rights Defenders Coalition and the regulations should come into effect as soon as possible.

Trapence added that the regulations should follow the Angolan way, where the government is putting in the Confiscation Fund money and property repossessed from citizens, including fugitives that are hiding in other countries. This is bringing money to that country.

The government in 2022, engaged United Kingdom-based asset recovery specialist Carolyn Lamptey to help in the fight against corruption and the recovery of assets.

Section  48(2) of the Financial Crimes Act of 2017 provides  for the use of courts in ordering the forfeiture of tainted property.

Source:Times