POLL | Did the SA Reserve Bank compromise its reputation in the Phala Phala report?

Several parties have announced plans to challenge the SA Reserve Bank (Sarb) report on the Phala Phala theft saga.

The Sarb's report concluded on Monday President Cyril Ramaphosa and Ntaba Nyoni Estates did not contravene exchange control regulations in the “sale” of buffalo and subsequent theft of at least R10.7m in foreign currency from the farm in 2020.

The investigation was launched on the back of the allegations by former State Security Agency head Arthur Fraser who lodged a criminal complaint against Ramaphosa, and complaints from various political parties.

The Reserve Bank said the report would not be made public as it was a “private internal report”.

“On the facts available to it, the Sarb finds that there was no perfected transaction and thus the Sarb cannot conclude there was any contravention of the Exchange Control Regulations by Ntaba Nyoni Estates CC or by the president. That is because the Sarb has concluded the transaction in question was subject to conditions precedent, which was not fulfilled, and therefore there was no legal entitlement to the foreign currency.”

“The question South Africans should ask themselves is, if there was no 'perfected' transaction, then why was the transaction registered in the books of Ntaba Nyoni Estates CC and how did Sars determine Ntaba Nyoni, which is solely controlled by Ramaphosa, is tax compliant?” said the EFF.

“Law-abiding citizens should ask themselves, if 'no perfected transaction' was performed, then why was there $580,000 stashed in Phala Phala Farm and for what purpose was it?

“Our foreign exchange laws must not be abused in an attempt to protect Ramaphosa from prosecution simply because the establishment prefers him.”

The DA wrote an open letter to Reserve Bank governor Lesetja Kganyago, saying the report was silent on the fact that foreign currency was in the president’s possession.

“That is the crux of the matter, not whether the transaction was perfected or not. The status of the transaction cannot be the determinant, it is the possession of the currency. If the transaction status is considered the deciding factor, then the door is wide open to money laundering and foreign currency being held for lengthy periods pending transaction completion.

“South Africa can ill-afford noncompliance with financial regulations. There is no doubt the financial action task force is also closely monitoring the outcome of this investigation. We request you make the report available, failing which we will submit an application in terms of the promotion of the access to information act and/or approach the court for relief,” said the official opposition party.

The UDM gave the Sarb seven days to release the report, failing which the party would consider other options.

“To foster a culture of transparency and accountability in public and private bodies to actively promote a society in which the people of South Africa have effective access to information to enable them to more fully exercise and protect all of their rights and in the interests of the nation and the country, and terms of Promotion of Access to Information Act (PAIA), the UDM herewith requests a copy of the Sarb's Phala Phala report.

“Should the Sarb decline to provide its Phala Phala report in terms of PAIA within seven days of this letter, the UDM reserves the right to other courses of action.”