South Africa: Money Laundering and Corruption

Lord St John of Bletso Excerpts

Thursday 17th October 2019 Lords Chamber

[Lord Ahmad of Wimbledon]

My Lords, I am sure the noble Lord will appreciate that I cannot say any more on the specific matter he has raised at this point. We are in touch with the South African authorities. The noble Lord is also very much aware of the strong stance that the UK Government and indeed the United Kingdom have taken over several years in further strengthening our work on tackling corruption and illicit finance. He raised a specific question on the UAE and India and whether my right honourable friend would write. I have been informed that the South African authorities have already made mutual legal assistance requests to the Governments of those countries. Additionally, similar requests have been made to the Governments of Canada, Switzerland, Mauritius, Hong Kong and China. As I said, I am aware of the letter the noble Lord wrote to my right honourable friend and I know the Chancellor will respond to him shortly.

[Lord St John of Bletso (CB)]

My Lords, at a time when South Africa is suffering the aftermath of a decade of the massive corruption of the Jacob Zuma regime, as well as an undermining of state institutions, what measures can be taken to root out the perpetrators of this corruption and assist the South African Government in reviving their moribund economy?

[Lord Ahmad of Wimbledon]

The noble Lord is right to raise that. We are working very closely, through not just the Foreign Office but the Treasury and DfID, with the South African authorities. I assure the noble Lord that the UK is playing a leading role, not just with South Africa, but in the global fight of fighting corruption. We have already committed £45 million over the next five years through the FCO-led, cross-HMG global anti-corruption programme. On South Africa specifically, we are engaging with a wide range of South African institutions to provide support to investigations with a potential UK link and to build capacity and capability, including specific support in areas such as procurement reform and promoting and facilitating regional co-operation. There are other schemes, including those in multilateral agencies through various UN representative offices, that we are also working together with South Africa on.

Zimbabwe

Lord St John of Bletso Excerpts

Thursday 31st January 2019 Lords Chamber

[Lord St John of Bletso (CB)]

My Lords, I join in thanking the noble Viscount, Lord Goschen, for introducing this very topical short debate. I, like many, had great hopes and expectations that the end of the Mugabe regime and the election of President Emmerson Mnangagwa would herald a new dawn of rebuilding political and economic stability in Zimbabwe.

Sadly, my high expectations and those of many others have been severely dashed. Many believe that the political and economic situation has deteriorated even more, leaving citizens grossly underwhelmed. While the recent street protests were triggered by the doubling of the fuel prices, this was just one of the multiple dimensions of the current Zimbabwe crisis.

There are, in essence, four key aspects to the current malaise, the first being the political crisis stemming from the contested legitimacy and leadership of the President, with clear divisions between him and his deputy, Constantino Chiwenga. The political crisis also has a constitutional dimension in that the traditional structure of checks and balances between the legislature, the Executive and the judiciary are just not there: the state is now captured by the military and more compromised. Secondly, there is the economic crisis, which has been manifested by a crippling debt trap, huge unemployment and a debilitating currency crisis. Thirdly, and most importantly, the human rights crisis has resulted in a suspension of fundamental freedoms, unlawful killings by the state, systematic torture and mass rape of women and children as extra- judicial instruments of punishment. The final aspect is international isolation, which has seen the President seeking assistance from Russia.

After the recent atrocities by the military, where live ammunition was used to kill innocent civilians and opponents to the regime were hunted down, much of the population of Zimbabwe has lost all faith, in both the military and political leadership, and people fear that their voices are not being heard by the international community. The move by the state to shut down the internet and social media was another flagrant abuse of human rights and associated with authoritarianism.

In his inaugural speech when he took office, the President undertook to promote economic stability by respecting property rights, repealing the indigenisation Act and tackling the multi-layered currency crisis. He also undertook to have an independent and respected judiciary, which applies the law, and an independent and respected police force, which enforces the law. Sadly, Zimbabwe has descended into a lawless state where none of the four pillars of democracy is functioning effectively, and which is being subverted by a kleptocratic elite. Moreover, there have been strong rumours that Vice-President Chiwenga has been attempting to unseat the President but has not managed to garner sufficient military support.

There are, however, a number of encouraging developments. The recent move to allow companies and individuals to transfer dollars electronically is to be welcomed. There have been calls for financial assistance by South Africa to alleviate the humanitarian crisis— I hope that this will be made conditional by South Africa on political reforms in Zimbabwe. The economic reforms introduced by the Minister of Finance, Mthuli Ncube, have been slowly starting to take effect, but the move to double the fuel price overnight was deeply irresponsible and reckless.

The nature of the political crisis requires a negotiated political solution, but the relatively low level of trust between the key players, Mnangagwa, Chiwenga and opposition leader Chamisa, means that this is highly unlikely. Ideally, to attempt to restore the public’s trust, there should be a Government of national unity, with a negotiated transition. International calls for the demilitarisation of Zimbabwe, I fear, are a long way away. The military and political leaders appear determined to keep hold of the levers of power rather than relinquish them for the promise of what they see as an uncertain longer-term upside of support by the international community.

DfID and the CDC have played an important role in trying to reduce poverty and promote economic recovery. I believe that efforts should be focused more on the private rather than the public sector in Zimbabwe. Any aid to the public sector in Zimbabwe should be conditional on political reforms.

My allotted time is up. There is currently no clear fix or solution to the current crisis. Like the noble Viscount, Lord Goschen, I hope that, in time, Zimbabwe will rejoin the Commonwealth but this will require a rigorous set of preconditions to be met.

Zimbabwe

Lord St John of Bletso Excerpts

Monday 21st January 2019 Lords Chamber

[Lord Ahmad of Wimbledon]

My Lords, I assure my noble friend that, as I have already indicated, constructive discussions are taking place with international partners and there is direct engagement with all parties on the ground. We are making it very clear that the current violence, the violations and abuses of human rights and the actions initiated by the security forces that we have seen are unacceptable. We will continue to work to ensure that that is communicated and will take all appropriate steps to ensure that the rule of law can prevail and that human rights are respected.

[Lord St John of Bletso (CB)]

My Lords, does the Minister not agree that the austerity measures taken by the Zimbabwe Government, doubling the price of fuel without consultation with the people, were deeply irresponsible?

[Lord Ahmad of Wimbledon]

That was the basis on which the recent riots took place. Fuel prices are a challenge but the current restrictions that have been imposed and the lack of reforms to open up the economy, as mentioned by other noble Lords, have prevented the emergence of the kind of economy that we wish to see. Until the Zimbabwe Government take responsibility in that respect, we will not see change, and that is regrettable and challenging. However, these acts of violence cannot continue and we will make that case very strongly.

Zimbabwe

Lord St John of Bletso Excerpts

Wednesday 15th November 2017 Lords Chamber

[Lord Ahmad of Wimbledon]

I thank the right reverend Prelate. Let me assure him that, of course, we welcome input and insight into the situation on the ground. He raises the issue of the important role of Church leaders in Zimbabwe, which will be an important element in ensuring the peace and security that we all wish to be sustained in Zimbabwe. The role of the Church in that regard will be crucial.

[Lord St John of Bletso (CB)]

My Lords, I welcome the Statement and the arrests of the G40 hierarchy, which I hope will herald a new dawn and a new chapter for Zimbabwe in building confidence in the country. Is the Minister aware that the most likely immediate scenario is that Emmerson Mnangagwa will become the interim President for the next 90 days and, at the electoral college scheduled for next month, a Government of national unity will be formed with Morgan Tsvangirai as the Prime Minister? While we all call for free and fair elections as soon as possible, is the Minister aware that the most likely situation is that elections will be delayed for a couple of years until economic security and stability is restored in the country?

[Lord Ahmad of Wimbledon]

The noble Lord will appreciate that I will not speculate on who may or may not lead Zimbabwe. It is a fact that Emmerson Mnangagwa, to whom he referred, was removed as Vice-President by Robert Mugabe and the current Administration. As to what happens thereafter, we expect, hope and desire first and foremost that peace and stability prevails. Of course, there is a constitution to be respected. It would be premature for me to speculate on any delays in elections scheduled for next year, or indeed on whoever in the coming days will be at the helm of government in Zimbabwe.