Give Competition Tribunal space to adjudicate bank collusion case

16 February 2017

The DA notes the Competition Commission’s referral to the Competition Tribunal of a collusion case against 17 banks. The matter concerns price fixing and market allocation in the trading of foreign currency pairs involving the Rand.

We take collusion very seriously, as it works against fairness and opportunity in the marketplace and ultimately hurts the consumer.

However, the ANC has prejudged the outcome of the case, accusing the banks of a “profit-driven assault” on the Rand, fuelled by “nefarious agendas” and “politically motivated intentions”.

The fact is that there is a cabal of ANC Ministers in Cabinet, clustered around the Gupta-lackey, Mosebenzi Zwane, that wants to do battle with the banks, regardless of the economic fallout. And it was clear from President Zuma’s State of the Nation Address last week that he intends using the competition authorities as a tool of his populist and destructive agenda of “radical economic transformation”.

A recent investigation by the South African Reserve Bank (SARB) and the Financial Services Board into the foreign exchange operations of authorised foreign exchange dealers in the domestic market found no evidence of serious and widespread misconduct. However, it found scope for the improvement in overall market conduct and made several recommendations in this regard.

Although the scope of the Competition Tribunal’s hearings will be broader, hopefully they will serve to bolster the SARB’s recommendations and give them renewed impetus.

The law should now be allowed to take its course. Both the Competition Commission and the banks should be allowed to state their case. And the Competition Tribunal should be able to test the evidence and adjudicate accordingly, without fear, favour or prejudice, in terms of its mandate as an independent institution subject to the constitution and the law.

Issued by Michael Cardo, DA Shadow Minister of Economic Development, 16 February 2017