The Directorate of Intelligence and Security Services (DIS) is investigation a criminal network involving Financial Intelligence Agency officers, commercial bank managers and big corrupt tenderpreneurs to rig the public procurement tendering system.
This follows a whistle-blower’s report which sheds light on the alleged shady goings between corrupt tenderpreneurs, bankers and officials from the suspicious transactions watch-dog.
An undisclosed number of FIA officers are being investigated following allegations that they fabricated negative vetting reports to sabotage companies bidding against tenderpreneurs who are part of the corruption syndicate.
These accusations are contained in a whistle blowing letter written to the Directorate of Intelligence and Security (DIS).
The FIA officers reportedly use provisions of Section 45 of the Financial Intelligence Act 2022 to generate negative vetting, red flag and close accounts of rival procurement bidders.
As a result of the fraudulent negative vetting, the rival companies are disqualified from bidding for public jobs because they fail to meet tender requirements.
Corrupt tenderpreneurs accused of conniving with FIA officers who connive with FIA officers are alleged to be mostly businessmen bidding for multi-million Pula projects in government, district councils, and parastatals.
First the corrupt tenderpreneurs use the whistle-blowing platform to file false financial fraud reports against competitors to commercial banks. FIA officers then file reports with the banks suggesting reasonable grounds for the suspicions. The commercial banks’ risk managers then close the competitors’ bank accounts.
It is reported that neither FIA officers nor bank authorities provide reasonable grounds for the freezing of accounts to the affected party, relying on the 15 days as prescribed by the Act.
Section 45 of the Financial Intelligence Act, 2022 empowers FIA to direct reporting entities, including commercial banks, to suspend a transaction for a period of 15 working days, where the FIA has established that there are reasonable grounds to suspect that the transaction may involve the commission of a financial offence.
“The Director General shall, where he or she has reasonable grounds to suspect that a transaction may involve the commission of a financial offence, direct in writing, a specified party, an accountable institution, the person who made the report or the person or bodies who have connections with such transactions — (a) not to proceed with the transaction for such period not exceeding 15 working days as shall be stated in the notice; (b) to monitor the account; and (c) to submit a monitoring report to the Agency within 10 working days, in order to allow the Agency, to make the necessary enquiries concerning the transaction, or if the Agency deems it appropriate, to inform and advise an investigatory authority,” reads section 45 of the Financial Intelligence Act.
Information passed to Sunday Standard revealed that a Director of a local company (names withheld) bidding for a multi-million Pula tender also recently found out his accounts have been suspended with no communication from the authority. Upon inquiry the bank personnel told them that their company account had been closed following an allegation of suspicious transactions in terms of section 45 of the Finance and Intelligence Act. He was told investigations were still ongoing.
“Since the closure there has been no communique up to date of the said transactions and 15 days has since lapsed and still no activity or response from FIA to the Bank,” state documents passed to DIS.
“This matter needs to be looked into as it disadvantages and harms the integrity and reputation of an individual and the company which may both fail to meet financial requirements during tendering process.” In an interview with Sunday Standard FIA said they had not yet received any communication from DIS on the said complaint. “We have not received complaints of this nature raised against our employees regarding their conduct nor allegations or suspicion that some of them conspire with employees of commercial banks to unlawfully freeze bank accounts of some account holders,” the Agency says.
“FIA takes allegations of this nature very serious as this is against its Act and policies. Since the matter is said to be with the DIS, we shall engage them to find out more about this. And if there is a complaint raised and DIS is carrying out some investigations, we shall keep a close eye on the matter while we await findings from their investigations which will guide us further.”
The agency says given the sensitive nature of the operations of their operations, building trust and maintaining the integrity of the organization is very important which is why all employees of the Agency are subject to security vetting and are expected to abide by the General Orders of the Public Service.
FIA says freezing of bank accounts is a measure adopted internationally by Financial Intelligence Units and Law Enforcement Agencies to facilitate financial investigations of possible money laundering, terrorist financing and associated predicate offences. “In all instances where the FIA invoked Section 45, it was to allow the Agency or law enforcement agencies time to carry-out the necessary assessment and analysis to determine whether the transaction(s) in question are linked to criminal activity or not or to allow law enforcement agencies time to approach the courts for a longer restraining order.”
The agency says they have adopted an internal procedure to guide implementation of freezing orders. “The procedure has embedded measures to guard against abuse of this provision which include approval by the Director General.”
