Illegal economy costing SA billions

2011-06-02 14:38

Cape Town - The illicit economy is costing South Africa billions and biting hard into the country's gross domestic product (GDP), State Security Minister Siyabonga Cwele said on Thursday.

"In 2010 we reported the loss in the gold industry amounting to R6.7bn," he told the National Assembly during debate on his budget vote.

"We have, with the cooperation and collaboration of other government departments, subsequently scoped the extent of the illicit economy which is estimated to be about 10% of our GDP, quantified to a loss of about R178bn to the economy," he said.

The illicit economy had the potential to seriously compromise the new economic growth path and was costing South Africa hundreds of thousands of jobs.

The scoping exercise revealed that this economic threat was rife in the mining, textile and tobacco industries, he said.

"These illicit activities create unfair competition to legitimate businesses and industries, erode the corporate tax base, distort trade, violate foreign exchange regulations, and create conducive conditions for espionage.

"This year, the security and economic clusters will focus on attracting and developing specialised skills and sophisticated technologies to counter this illicit economy," Cwele said.

At a media briefing earlier, director general Jeff Maqetuka said the illicit economy could be "even bigger than we think", because investigations are still continuing.

  • Jakkals - 2011-06-02 14:47

    .. says the one who's wife had a hand in this ..

      Rolie - 2011-06-02 16:16

      He should tell us something we don't know. His cronies are costing us more money with all the corruption. By the way, how's the wife doing - oh sorry, I forgot, she is appealing and certainly not in the sense of the word. Try doing the Shaik!!

  • Meerkatjie - 2011-06-02 14:54

    Says he who's wife has been found quilty of drug trafficing!!

  • Thewest - 2011-06-02 14:54

    Does this include the smuggling of drugs?! Ironic...

  • Gore - 2011-06-02 14:54

    Cheap throwing of numbers around, where do they come from? If you can quantify and point where the leak is coming from, why not plug the damn leak, Mr Minister? Why are these non event occassions graced with microphones to record nothing spoken in so may words.

      My2c - 2011-06-02 16:07

      maar natuurlik kry hy die syfers van sy vrou

  • vsquad - 2011-06-02 14:55

    Do the right thing state security minister (Mr Cwele)just resign please.. worst issue here is - Your wifey found guilty of drug traffiking.

  • AndV - 2011-06-02 14:56

    Can the Minister pls give us an indication of how much his wife made out of drug-money last year?

      pawsaw - 2011-06-03 16:18

      And also tell us how much her and her partner in crimes trials are costing the man inthe street and that means everyone who pays anything for staying alive that is VAT'd. Sh is even appealing her guilty verdict and costing us more money and I begrudge any money going to crooks in high places living off the fat of the land and married to Cwele who doesn't have the intention of resigning over something illegal his wife did and which he probably also benefitted from.

  • bollie - 2011-06-02 14:57

    Don't the selling of drugs fall under here....

  • tut - 2011-06-02 14:58

    The pot calling the kettle black? Does this illicit activity include drug smuggling /illicit tender fraud / corruption/ excessive spending on the part of the Government? I bet you this amounts to a few billion rands of taxpayers money wasted by this corrupt Government!

      Lawence - 2011-06-02 16:07

      That was quantified at 20% of GDP and reported to Parly a few months ago

  • Robbie.wp - 2011-06-02 15:02

    he's just sour because he couldn't bag some of the money to import drugs...

  • laeticia fisher - 2011-06-02 15:06

    ... and who must we thank for this???

  • clark - 2011-06-02 15:07

    - Hmmm - Is'nt your wife also part of that illicit economy ? The man sure has no skaam .

  • TrueSaffa - 2011-06-02 15:11

    And how much is the government losing because of incompetent ministers and public servants? Also how much are they losing through corruption of government officials?

  • Gungets Tuft - 2011-06-02 15:13

    Perhaps they are smuggling it out with the drug mules. Anyone know a likely suspect? And just a question - how can it be costing jobs. It is not as if people are not doing the work - they are just not declaring it. Loss of tax income, loss of foreign exchange perhaps, but jobs???

  • peregrinus - 2011-06-02 15:14

    Minister your wife is definately part of the problem.But does drug trafficing actually contibute to the gross national product or not?

  • Dave - 2011-06-02 15:14

    Illicit businesses such as smuggling cocaine from Brazil???

  • TrueSaffa - 2011-06-02 15:16

    And how much is incompetent public servants, government officials and ministers causing us, not to mention all the corruption. The ANC is costing this country money...

  • GinSA1 - 2011-06-02 15:17

    And his convicted criminal of a wife will add what to the cost of illicit trading?

  • Dave - 2011-06-02 15:17

    Illicit businesses such as smuggling cocaine from Brazil perhaps???

  • peregrinus - 2011-06-02 15:18

    Dear Minister, I think your wife is part of the problem. But does drug trafficing not contribute to the GDP?

  • Dubya - 2011-06-02 15:19

    Is it any wonder? The "government" has not even grasped the principle of personal finance (something you have to go to school for), let alone a country's economy.

  • Morokalebola - 2011-06-02 15:20

    Honestly chief, I am not sure what you are talking about. With your wife in the forefront of illicit economy, If I were you, I would just shut-de-f-up.

  • Dubya - 2011-06-02 15:20

    I'm not surprised...with a State Security minister with the name "Siyabonga" things are bound to start going downhill pretty quick!

  • Virginia - 2011-06-02 15:24

    And it has taken them 20 years to find this out. Is it not time that buying clothing from china etc be stopped, and departmental store and boutigues mae to buy 80% South African clothing. Maybe then we will see the difference in our economy. Instead of the share holders of these store becoming the rich and famous the citizens will have work and buy decent garments made in their own country again.

  • gizzy - 2011-06-02 15:27

    He should know about illigal activity. Hasn't his wife just been convicted of that?

  • HONKY101 - 2011-06-02 15:27

    Mmmmm methinks you should look in your own backyard before shouting your mouth off about illegal activities mister minister !!

  • Concerned - 2011-06-02 15:28

    I'm sure the dear Minister 4got 2 mention "Drug Trafficing" of which his dearest wife is involved in.

  • Unskinny Bob - 2011-06-02 15:29

    AA costing the country how much? BEE costing the country how much? Only time anything is investigated is when the top dog cadres aren't profiting.

      allie - 2011-06-02 16:25

      DEMOCRACY DOESN`T WORK FOR SA!!!!!!!!!!!!!

  • Unskinny Bob - 2011-06-02 15:30

    AA costing the country how much? BEE costing the country how much? Only time anything is investigated is when the top dog cadres aren't profiting.

  • erazor - 2011-06-02 15:34

    And illicit activity in the "pharmaceutical" industry???

  • Staalbal - 2011-06-02 15:35

    HAHAHA Cwele commenting on the illicit economy after he profited directly from his wifes drug deals, how low can these bastards go

  • Unskinny Bob - 2011-06-02 15:41

    AA costing the country how much? BEE costing the country how much? Only time anything is investigated is when the top dog cadres aren't profiting.

  • Robbie.wp - 2011-06-02 15:41

    people who live in glass houses shouldn't throw stones!

  • bakkies - 2011-06-02 15:42

    Just for the Minister: Is drug trafficking part of the illicit economy or not!!!!!!!

  • slick rick - 2011-06-02 15:43

    Mr Cwele. what about what your wife was doing

  • kidblack - 2011-06-02 15:44

    What about the taxi industry? Do you think that cash business declares all income and pays all taxes?

  • EJD - 2011-06-02 15:44

    Is this now worse than drug trafficking by Mrs Cwele

  • Mainecoon8 - 2011-06-02 15:46 to mention, and as quoted in several august journals, the circa 20% of GDP that is being 'lost' due to corrupt, crooked, nepotistic and downright squalid tender manipulation, theft of government coffers at local levels, living a rampant high-life with scandalous expense abuse, ridiculous luxury car spending, excessive travel and "bling-politics" for personal hubris. The sheer criminality to which we are increasingly inured through long ongoing practice as well as non existent governance, is as much, if not more of a problem the the grey market, which at least has some endeavour attached to it. This government's shameful smoke-screening is transparent and their ignorance of prioritising the real issues is a disgrace.

  • Geebs - 2011-06-02 15:46

    Where do these guys suck these numbers from? Incredible accusations with no substance behind them, and certainly no evidence mentioned.What is "illicit economy", and what are the "illicit activities" that are alluded to? Another smokescreen to waste more millions on investigations!

  • EJD - 2011-06-02 15:46

    Is this now worse than drug trafficking by Mrs Cwele

  • Nonbeliever - 2011-06-02 15:47

    And maybe we should ask the hon. Siyabonga Cwele what the drug is costing us. Or is that a question for his wife?

  • bakkies - 2011-06-02 15:48

    Just for the Minister: Is drug trafficking part of the illicit economy or not!!!!!!!

  • OuWitBooi - 2011-06-02 15:48

    Hw wasn't referring to people who run drug smuggling operations was he?

  • Geebs - 2011-06-02 15:49

    Where do these brain surgeons suck these numbers from? What is "illicit economy" and what are the "illicit activities"? Just another way for them to scam some more millions!

  • - 2011-06-02 15:50

    Doesn't his wife run some sort of illegal trade too? LOL !

  • Concerned - 2011-06-02 15:51

    The minister forgot to mention "Drug Trafficking" amongst other illegal economies; or is it because its a "family business"?

  • Joe - 2011-06-02 15:51

    It is such a shame. SA has so much potential, but with the state that we are in currently there is almost no hope. If only there was a way to get rid of all the corruption. If we can stop trying to find someone to blame, but do something about it, SA could have a chance. But then things like the information bill comes up and even though every single person in SA is against it except the corrupt politicians, nothing will stop them.

  • Daniel - 2011-06-02 15:52

    Ja, and how much did your wife contribute to this Mr. Cwele!!!! Since you did not do the honourable thing and fall on yr own sword, u should just keep yr trap shut and resign!!!

  • erazor - 2011-06-02 15:54

    "this economic threat was rife in the mining, textile and tobacco industries" -- And the illicit "pharmaceutical" industry???

  • Rod - 2011-06-02 15:59

    Does that include drug smuggling?

  • erazor - 2011-06-02 16:00

    "this economic threat was rife in the mining, textile and tobacco industries". And what about the illicit "pharmaceutical" industry???

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