The Advocate Busisiwe Mkhwebane Foundation (BM Foundation) has formally requested that United States authorities investigate President Cyril Ramaphosa regarding the Phala Phala scandal. The foundation, a South African justice advocacy group, alleges that violations of U.S. Federal law occurred concerning the receipt, transportation, and concealment of a significant amount of American currency at the president’s private game farm in Bela-Bela, Limpopo.
Allegations of Currency Violations
In its submission, the foundation identifies specific provisions within Title 18 and Title 31 of the United States Code, which govern criminal conduct and currency reporting requirements. The organization contends that the volume of cash involved in the 2020 incident exceeds the statutory threshold of $10,000, triggering requirements for customs and tax reporting that they claim were never met.
The foundation points to conflicting accounts regarding the exact amount of money involved. Representations made to the Section 89 Independent Panel—chaired by former Chief Justice Sandile Ngcobo—suggested that $580,000 was stolen, a sum the president previously stated originated from a cash sale of game to a Sudanese national, Mustafa Mohamed Ibrahim Hazim.
Context and Implications
The foundation’s request for a U.S. Investigation follows the findings of the Section 89 Independent Panel, which previously concluded on a prima facie basis that President Ramaphosa may have committed a serious violation of the law. A 2023 report by Mkhwebane had previously deferred investigations into foreign exchange and tax compliance to other regulatory bodies, none of which have reached a final determination to date.
Potential Next Steps
Shirley Willemse, chairperson of the BM Foundation, confirmed that the foundation has submitted its request to various whistle-blowing agencies, including Crime Intelligence. The group’s stated goal is for these agencies to facilitate a referral to the U.S. Federal Bureau of Investigation (FBI), as there is no direct channel for such a complaint between the foundation and U.S. Law enforcement.
Should the relevant U.S. Agencies initiate a formal investigation, it could lead to proceedings involving criminal prosecution or civil and criminal forfeiture, depending on the evidence uncovered. However, whether such an investigation will be launched remains subject to the discretion of U.S. Authorities.
Frequently Asked Questions
What is the basis for the foundation’s request to the U.S. Government?
The foundation claims there are reasonable grounds to believe that violations of Title 18 and Title 31 of the U.S. Code occurred regarding the transportation, receipt, and concealment of U.S. Currency at the Phala Phala farm.
Why is the $10,000 threshold significant?
Under U.S. Law, the knowing concealment of more than $10,000 in currency while transporting it into or out of the country without reporting it constitutes a currency smuggling offense.
What has been the official stance on the origin of the funds?
President Ramaphosa has previously claimed the funds were the proceeds of a cash sale of game to a Sudanese national, Mustafa Mohamed Ibrahim Hazim, though the foundation maintains that no lawful account of the origin, transportation, or tax treatment of the money has been provided.
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