A giant milestone was reached in Lesotho’s war against corruption when the Minister of Finance and Development Planning Dr Timothy Thahane tabled before Parliament the long awaited Money Laundering and Proceeds of Crime Bill, 2007 yesterday.
Although the Bill was met with mixed feelings in Parliament with members of the ruling party strongly lauding it while the opposition described it as government’s ploy to lure and impress the outside world, analysts have described it as an important achievement, a tool that shall improve the corruption and economic offences act of 1999.
The Finance Minister has described it as “one of the weapons Lesotho’s government will use to fight corruption.” The Bill follows Lesotho’s ratification of the SADC protocol on Corruption in August 2005 in which she undertook to fight and combat passive and active corruption committed by a public official and to stop the diversion of property by public officials.
The Bill, the Finance Minister said, will be used in addressing money laundering as well as other related issues like buying property using stolen money.
“It will enable authorities to investigate public servants and cabinet ministers and the expectation is that findings of such investigations will be handed in to the courts of law who will in turn act accordingly,” Dr Thahane mentioned.
The most common corruption practice in Lesotho are related to money laundering which hard hits and undermines the foundations of political, financial and administrative integrity involving illegal transactions worth millions of dollars but until now there has been no law that incriminates the practice.
Through the Bill Lesotho will also work and corporate with other nations in tracing monies saved in other banks outside the country illegally as well as those coming from other countries illegally.
The law is also set to protect innocent citizens so that they are not victimised hence an authority will be established that will oversee that the law is being implemented properly.
First to second the Finance Minister was the Minister of Health and Social Welfare Dr Mphu Ramatlapeng who mentioned that if enacted, the law will give Lesotho a good reputation and improve its image internationally while also attracting investors and discouraging those who might wish to come into Lesotho for criminal activities.
Since ratifying the SADC protocol on corruption which amongst others addresses the issue of proceeds of crime by allowing for their confiscation and seizure thereby making it difficult for individuals to benefit from proceeds of corruption, Lesotho has put in place preventative measures which include Lesotho Revenue Authority, a system of revenue collection and control, the Anti Corruption Unit responsible for implementing the mechanisms of preventing, detecting, punishing and eradicating corruption to mention but a few.
The Money Laundering and Proceeds of Crime Bill, 2007 will be approved by the Senate before it is formally accepted as a law.