Opposition not happy with Reserve Bank report exonerating Ramaphosa

21 August 2023 - 20:37
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President Cyril Ramaphosa. File photo.
President Cyril Ramaphosa. File photo.
Image: GCIS

Opposition parties were united in condemning the South African Reserve Bank’s (SARB) findings on Monday after its year-long investigation into the Phala Phala matter, which exonerated President Cyril Ramaphosa of wrongdoing. 

The Bank said it “cannot conclude” that Ntaba Nyoni Estates or Ramaphosa flouted foreign exchange control laws.

The probe came as a result of allegations made by former correctional services boss Arthur Fraser regarding the theft of at least $580,000 (R10.7m) of undeclared foreign currency from the president's private game farm and complaints by numerous parties to the Bank. 

The DA said the Bank has chosen not to release the full “private internal” report.  

“This statement by the Reserve Bank raises questions about transparency and accountability.” 

It said the SARB's finding hinged on the absence of a “perfected transaction”, which meant the legal requirements for the transaction to be completed were not met.  

Conditions for a perfected transaction were unfulfilled due to the non-delivery of buffalo to businessman Hazim Mustafa. This led to the bank’s conclusion that there was no legal obligation under the exchange control regulations to declare the foreign currency. 

“However, the suspicious circumstance of the money being stuffed into the president's couch, and the possibility that cash was held beyond a legislated limit, seem to have been beyond the scope of the investigation,” the DA said.  

“The narrow focus of its investigation also raises concerns about its thoroughness and whether political considerations arose.” 

The DA said it would not let the matter rest and will pose additional questions to the Reserve Bank when its officials appear before parliament's standing committee on finance next week. It will write to the governor of the Reserve Bank to request further details and a copy of the report. 

“South Africans need to know what happened at Phala Phala and that includes knowing whether the president broke financial laws he is entrusted to uphold,” the DA said. 

The EFF also rejected the bank's findings. 

“In their pathetic and poor attempt to cleanse Ramaphosa of the Phala Phala crimes, the SARB has unwittingly confirmed our suspicions that there was never a transaction or intention to have a legal transaction.  

“Instead, the intention was to launder money through Phala Phala, as we have consistently maintained that Ramaphosa uses his farming business as a front for money laundering.” 

The EFF said it was common cause that foreign currency entered South Africa unlawfully because the South African Revenue Service at the OR Tambo Airport, where Mustafa came through, has no record of such foreign currency.  

“This on its own is prima facie evidence of criminal conduct that leads to Ramaphosa. Ramaphosa himself acknowledged receipt of this unlawful currency, which was later stolen.

“He was in possession of foreign currency that entered South Africa's borders beyond the 30 days allowed by the foreign exchange regulations. 

If there was no “perfected transaction”, why was the transaction registered in the books of Ntaba Nyoni Estates CC and how did Sars determine that Ntaba Nyoni — which was solely controlled by Ramaphosa — was tax compliant? 

AIf no 'perfected transaction' was performed, why was there $580,000 stashed in Phala Phala farm and for what purpose?

The EFF would seek legal advice to consider taking the matter to court to force the SARB to “do its job and not undermine foreign exchange laws”. 

The FF Plus said the Banks' report raised more questions than answers.

According to the bank, no evidence could be found of a transaction involving the sale of buffalo and, consequently, no exchange control regulations were contravened.

“This justifiably raises the question of how the dollars ended up on the farm in South Africa if there is no evidence of any transaction?”

Ramaphosa owed the South African public an explanation.

“If he keeps refusing to play open cards, parliament must again take steps to investigate the matter,” the FF Plus said.

ActionSA leader Herman Mashaba said his party was consulting its legal representatives. 

“We believe the SARB investigation is another attempt to cover up President Ramaphosa’s involvement in the burglary. How is it possible that $580,000 can be hidden in a couch without our financial agencies being aware of it?” 

Mashaba said ActionSA was dismayed by Reserve Bank governor Lesetja Kganyago’s correspondence to its letter in June last year that the Phala Phala report would remain private. 

He said if Ramaphosa had nothing to hide, why would the report not be released for public consumption> 

“We remain concerned that government entities are being used in an attempt to clear President Ramaphosa, despite his own VIP unit embarking on an off the books and possibly illegal investigation into the burglary.”

TimesLIVE


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