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- The sanctioning of SA companies linked to ISIS comes at a sensitive time amid fears that the country may be greylisted, says security expert Ryan Cummings.
- Cummings says the government's response to the sanctions by the US treasury department will have a direct impact on the economy.
- This comes two weeks after the US embassy issued a warning of a possible terrorist attack in Sandton, Johannesburg.
Security expert Ryan Cummings says US sanctions on South African companies and businesspeople linked to the Islamic State (ISIS) group come at a sensitive time, considering that the country could be greylisted by the Financial Action Task Force (FATF) later this year.
Cummings told News24 on Monday night that the South African government's response to the US sanctions could determine whether the country gets greylisted. He said a greylisting would impact the economy.
Earlier, News24 reported that greylisting indicated the risk that the rest of the world attached to local companies and people as counter-parties to transactions.
"One of the issues raised by the FATF was that South Africa's legislation regarding money laundering and anti-terrorism financing were not compliant across all the specific criteria. Now, we have the issue of individuals who, according to the US, are potentially financing terrorist activities within South Africa. South Africa's response to this issue will be important and potentially impact whether we will get greylisted," said Cummings.
On Monday, the US treasury department announced it was sanctioning four people, including Nufael Akbar and Yunus Mohamad Akbar, who it said were linked to alleged ISIS cell leader Farhad Hoomer, and eight companies linked to them.
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"Brothers Nufael Akbar and Yunus Mohamad Akbar are senior members of a Durban, South Africa-based ISIS cell led by Farhad Hoomer. Nufael Akbar has collaborated with and been directed by Hoomer. Nufael Akbar is a central commanding figure in the Durban-based ISIS cell. Yunus Akbar functions as an enforcer and logistical coordinator for the ISIS cell," said the US treasury department.
The sanctions came two weeks after the US Embassy issued a warning of a possible terror attack targeting large gatherings at an unspecified location in Sandton, Johannesburg.
Cummings said although he could not link the two incidents, the timing was "conspicuous".
The warning came ahead of several events, including the pride parade and a two-week theatre show by Jewish comedian Nik Rabinowitz.
At the time, sources revealed to News24 that US authorities had warned of the looming attack and identified seven people believed to be part of an ISIS-aligned cell.
However, Deputy Minister in the Presidency Responsible for State Security Zizi Kodwa said there was no direct threat to the country and slammed the US for disregarding procedure by releasing information about the potential threat without discussing it with the government.
He said:
"Therefore, there is always protocol...on such issues. Firstly, to respect the sovereignty of a country. You can imagine if South Africa would pick up an issue in Washington and call our ambassador without having canvassed and discussed it with authorities in Washington. Big diplomatic fallout," he added.
Attempts to get a comment from Hoomer were unsuccessful at the time of publication. His response will be added once received.
The comment of State Security Agency (SSA) spokesperson Mava Scott will also be added once received.
In March, Hoomer vowed to fight his sanctioning by the US treasury department.
The US treasury's Office of Foreign Assets Control claimed Hoomer had started an ISIS cell in Durban. Hoomer denied the allegation.
Hoomer and 10 other people were in the process of suing the state for R156 million for wrongful arrest in connection with the 2018 Verulam terror attack. One man was killed at Imam Hussain Mosque, and various shops were attacked when incendiary devices were placed inside them, causing widespread panic.
The case was struck off the roll in 2020, but remained under investigation without any new developments.
