SARB report needed to clarify president’s exoneration
21 August 2023
The DA notes the South African Reserve Bank's (SARB) announcement that it has finalised its year-long investigation into the “Phala-Phala” matter. The findings of the investigation effectively exonerate President Ramaphosa of any ‘technical wrongdoing’ within the scope of its inquiry.
The investigation stems from allegations by Arthur Fraser, the former head of the South Africa’s spy agency, regarding the theft of at least $580,000 (R10.7m) of undeclared foreign cash from the President's private game farm.
The Reserve Bank’s states that it "cannot conclude" that Ntaba Nyoni Estates or President Ramaphosa violated foreign-exchange control laws. The Bank has chosen not to release the full "private internal" report. This statement by the Reserve Bank does raise questions about transparency and accountability.
The Reserve Bank’s finding hinges on the absence of a "perfected transaction," which means that the legal prerequisites for the transaction to be completed were not met. Specifically, the conditions for a perfected transaction were unfulfilled due to the non-delivery of a buffalo to the infamous businessman Hazim Mustafa. This led to the Reserve Bank’s conclusion that there was no legal obligation under the exchange control regulations of 1961 to declare the foreign currency.