Economics Public Opinion South Africa

The History of White Monopoly Capitalism and its Malicious ways to Loot the SA Economy

The History of WMC supported stooges looting South Africa is quite Descriptive and it does include Most White people who got these Corrupt and Dirty Intentions inherited from their previous generations. In a Report published in the News website Economy Capture, it’s been said that The whites had looted the economy very bluntly, but when their atrocities crossed the tipping point and came under the direct scrutiny of the UN, major white corporations started to find ways to save their illegal wealth out of fear of the ending of the apartheid era. In this quest, they started to siphon out their capital from the country in 1980s till 1994.

Economy Capture SA

The Reason behind this Massive Money Laundering Act by Whites during the Apartheid Era

The apartheid era is a case scenario which has been created b y whites just to accommodate their looting of the economy without any disruption. The Footprints of their illicit deeds at that time are even visible today. But after a while when they came to know that the criticism for their acts is widely increasing and this Ploy of theirs would not last for long, they decided to siphon the money out to Offshore locations in safe accounts, so that they didn’t have to distribute the same money with the native blacks. Even the White firms knew that the policies after the apartheid era would be of Fair Practice and their Illegal trade practices would be endangered. This fear forced them to illegally channel out their money outside South Africa via various fraudulent ways which can be summed up as following:

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1) Capital Flight through fraudulent Invoicing of Goods

This illegal trade practice by the big white corporations had accounted the country with Losses worth of more than $20 billion between 1970 and 1982. This is a practice where the goods are exported at a certain price from one country but later sold for a discounted price in another. Moreover, whatever stays comes as margin out of the prices difference was kept in a secret off-shore in another country. This illegal invoicing method was implemented by many white corporations in the apartheid era, thus resulting in a heavy loss to the South African economy. For example, in 1988, total goods exported were worth$13677 million, but the face value in the destination countries for the same goods was $15166 million. Therefore, the marginal amount of $1489 million has been laundered to various offshore accounts, mainly in UK.

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2) Via Round tripping (Dual exchange rate system)

The Financial rand mechanism during the Apartheid era was materialized for making frauds by the white corporations. The Mechanism further allows the non-residents south African to invest in South Africa through the financial rand and then withdraw their money via tax havens at a higher commercial rand rate. The Worst impact of this system lies with the native blacks as they were forced to fund this investment or we can say that they were supporting this system even when they were not aware about the flaws of it. Moreover, A case of alleged currency round tripping worth R210 million came into limelight during the disinvestment process in Apartheid era when A South African citizen, Oliver Hill brought funds into South Africa at financial rand rate and then laundered the real profit at the commercial rate to UK (this was primarily linked to the forgery of Eskom bonds).

3) Tax Avoidance

This can said to be the mostly corrupted practice taken over by the white corporations during the apartheid era. This involved the transfer of Profits in tax havens with nominal or no taxation rule or articles with high-value transferred outside national boundaries. This can be regarded as the most popular one amongst the Whites, as they were well infamous for their Dirty Financial mechanism or transgressing regulatory mechanisms. In another big time Tax abuse case, De-Beers was found to be involved in laundering huge amounts of diamond offshore just before the Primary elections of post-apartheid era in 1994. It was further been calculated that De Beers did avoid the taxes on three and a half million of diamond mined out by it.

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These corrupt and dirty ways of Money laundering and the numbers attached to these speaks solely about the worst exploitation of the South African economy along with its resources during the Apartheid era. A Big thanks should be forwarded to ANC which almost eliminated these activities once they cam e into power in 1994. The Evils still thrive within the nerves of the country with the name White Monopoly Capital and measures should be taken in order to stop them further.