ANC welcomes SARB report clearing Ramaphosa on Phala Phala scandal

21 August 2023 - 18:50
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The ANC said it was satisfied that the SA Reserve Bank cleared President Cyril Ramaphosa of wrongdoing in the Phala Phala saga.
The ANC said it was satisfied that the SA Reserve Bank cleared President Cyril Ramaphosa of wrongdoing in the Phala Phala saga.
Image: Jairus Mmutle/GCIS

The South African Reserve Bank's (SARB) findings that President Cyril Ramaphosa did not violate exchange control regulations is “unambiguous and definitive”, the ANC said on Monday.

The Bank released its findings on a report on a transaction at Ramaphosa's private game farm, Phala Phala.

ANC spokesperson Mahlengi Bhengu-Motsiri said the party was satisfied with the findings and expects “baseless accusations will be dispelled”.

“The process followed with subsequent findings by the Reserve Bank vindicates our view that South Africa is a robust democracy with resilient oversight and regulatory institutions.”

Earlier on Monday, the SARB said it “cannot conclude” that Ntaba Nyoni Estates or President Cyril Ramaphosa flouted foreign exchange control regulations.

The Bank confirmed it had finalised its investigation into the saga last week.  

The probe came after allegations by former correctional services boss Arthur Fraser and complaints by various parties to the Reserve Bank.

“Due to legislative requirements and constraints which apply to the SARB, the report into this matter is a private internal report and will not be made available to the public,” it said.

However, the bank released some information about the investigative process followed, the duration and extent of its investigation and the scope and purpose of the probe. 

Its financial surveillance department (FinSurv) carried out the investigation in two phases.

“The initial phase involved a consideration of internal information and databases and the analysis of cross-border foreign exchange transactions over the relevant period. This was followed by a more comprehensive phase involving FinSurv requesting and receiving additional information and documents, supplemented by statements and/or affidavits and thereafter conducting interviews with various individuals and liaising with other parties.

“FinSurv also sought and obtained legal advice in relation to its investigation and the process it followed. Based on the information, documentation and evidence received and considered as part of the investigation, the legal framework applicable to exchange controls, the mandate of the SARB and FinSurv and legal advice, the SARB finalised its investigation and report.”

The investigation took about a year to complete and “was a comprehensive investigation, having regard to the limited mandate of the Bank and FinSurv in this matter”, it added. This included:

  • whether there were exchange control violations;
  • considering dozens of documents and related information running into hundreds of pages;
  • obtaining and/or considering 15 affidavits or statements;
  • liaising with other parties including relevant authorities; and
  • undertaking formal interviews with the relevant individuals.

“It is pertinent to recognise the scope and purpose of the investigation and report are limited to whether there were exchange control violations in terms of the Exchange Control Regulations in respect of the foreign currency allegedly stolen from the Phala Phala farm on February 9 2020," the SARB said.

TimesLIVE


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