Mkhwebane foundation asks FBI, DOJ to probe dollars found at Phala Phala farm

The Busisiwe Mkhwebane Foundation has formally asked US federal authorities to open a criminal investigation into the US dollars discovered at President Cyril Ramaphosa’s Phala Phala farm.

What the foundation requested

Last week the foundation submitted a formal request to the Federal Bureau of Investigation (FBI) and the Department of Justice (DOJ), asking them to investigate the origin, transportation and concealment of the US dollars found at Phala Phala and to consider whether American criminal or financial laws were violated.

Background to the renewed call

The foundation’s action follows earlier moves seeking US involvement in the matter, including a 2022 letter from then Democratic Alliance leader John Steenhuisen that asked the FBI to consider whether the funds were brought into South Africa legitimately and declared to the appropriate authorities.

The Phala Phala controversy began after former spy boss Arthur Fraser laid criminal charges in 2022 alleging money laundering, kidnapping and defeating the ends of justice arising from the 2020 theft of cash concealed at the Limpopo farm. President Ramaphosa has said the stolen sum was $580,000 and that the cash represented legitimate revenue from the sale of buffalo and game on his property.

Legal steps the foundation wants

The foundation told US authorities it has a whistleblower report alleging bulk cash smuggling, money laundering and cross-border currency violations. It asked the FBI and DOJ to pursue both civil and criminal forfeiture of any US dollars that are proceeds of criminal activity under 18 U.S.C. §§ 981 and 982, and 31 U.S.C. § 5332(b)(2), and to consider designating involved individuals or entities under 31 U.S.C. § 5318A (Section 311 of the USA PATRIOT Act).

The foundation also requested that US investigators seek assistance from South African authorities, including SARS, the South African Reserve Bank, the Hawks and the National Prosecuting Authority, to obtain records linked to the matter.

Expert comment cited by IOL

International law Professor Andre Thomashausen was quoted saying that because the United States government maintains legal ownership of physical cash in circulation, “using these bills in any illegal activity triggers American federal jurisdiction.” He added that hiding large amounts of US dollar notes usually occurs in serious criminal environments and that US prosecutors generally pursue only serious cases that affect US interests and security.

What remains unchanged in public record

The IOL report notes the renewed request by the Mkhwebane foundation is the latest appeal for international investigation into the Phala Phala affair. The report reiterates the competing accounts about the amount stolen and the source of the cash: the allegation of over $4 million initially reported in 2020 and the President’s statement that the stolen amount was $580,000 from legitimate game sales.

Investigation and international engagement are now the specific steps sought by the foundation, which argues US jurisdiction may be engaged because US currency was at the centre of the incident.