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DA member of parliament and party finance boss Mark Burke has stepped away from the finance cluster in parliament.
Despite remaining an ordinary MP, Burke will no longer serve on the finance committee or in the cluster.
The party had decided to operate with an “abundance of caution”, according to DA parliamentary leader George Michalakis.
“We have decided to avoid any perceptions of a conflict of interest. This is while a company that Burke is a beneficiary of is the subject of an inquiry by the SA Reserve Bank. We have now effected that change,” said the party.
The move follows a probe by the SARB, which is investigating Burke’s fintech company over about R4bn in transfers and transactions that allegedly circumvent exchange-control regulations.
Burke, one of the DA’s donors, is at the centre of a legal battle between Kastelo, the company he founded, and the reserve bank, after it moved to freeze some of its funds held with Access Bank.
Business Day reported on Monday that the reserve bank alleged Kastelo misrepresented its business activities to authorities.
However, instead of the DA immediately distancing itself from Burke, the party opted to establish the facts and allow its internal processes to run their course.
Burke, in a joint statement with DA federal council chairperson Ashor Sarupen, denied any wrongdoing and explained that he served as a chairperson of the broader Kastelo group.
According to Burke, he relinquished those duties in February this year.
DA federal chairperson Solly Msimanga confirmed this week to the Sunday Times that senior party leaders had engaged Burke ahead of the federal executive meeting, where his position was expected to be considered.
While a cloud hangs over his head, he will be replaced by MP Kingsley Wakelin as the party’s finance spokesperson.
This is a developing story.
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