The SA Reserve Bank (SARB) will not review its report that cleared President Cyril Ramaphosa of violations of exchange control regulations in the Phala Phala saga following the Constitutional Court judgment.
Two weeks ago, the apex court referred the Section 89 Independent Panel’s report to an Impeachment Committee.
The panel chaired by former Chief Justice Sandile Ngcobo found that, prima facie, Ramaphosa may have committed serious violations of the Constitution and the law, as well as serious misconduct, but the ANC used its majority to quash the implementation of its recommendations.
In response to questions, the SARB said the central bank will not be reviewing its report on the Phala Phala matter.
“The recent Constitutional Court judgment, which made findings on Parliament’s impeachment process, has no bearing on the SARB’s investigation into alleged exchange control contraventions,” the Reserve Bank stated.
The probe found that the applicability of exchange control regulations in the Phala Phala matter would depend on whether there existed a perfected transaction, which is an unconditional contract for the purchase and sale of the buffalos.
“It follows that if there was such an unconditional contract, an entitlement to the foreign currency on the part of Ntaba Nyoni Estates would exist, triggering the obligation under Exchange Control Regulation 6(1) for Ntaba Nyoni Estates CC to make or cause to be made, within 30 days, a declaration in writing of such foreign currency to Financial Surveillance (FinSurv) or to an authorised dealer,” the report explained.
According to the SARB, the FinSurv’s investigation and approach was not premised on the unquestioning acceptance of the versions placed before the investigators and that all the truth has been told.
“Based on the information available to FinSurv, as well as that the sale was subject to conditions precedent, FinSurv is of the considered view that the transaction was not a perfected transaction which gave rise to a legal entitlement by Ntaba Nyoni Estates CC to the foreign currency,” the bank found in August 2023.
The SARB continued: “It appears from the facts available to FinSurv (as related to exchange controls) and which have not been contradicted by any other evidence which is available to FinSurv, that the obligation under Exchange Control Regulation 6(1) was not triggered on the part of Ntaba Nyoni Estates CC upon receipt of the foreign currency from Hazim (Mustafa Mohamed Ibrahim).”
It established that in the circumstances, there would not be a breach of the exchange control regulation by Ntaba Nyoni Estates and that the FinSurv, on the facts available to it, cannot conclude that there was a contravention of the regulations by either, Ramaphosa or his company.
Hazim bought 15 female and five male buffalos from Ramaphosa which he was happy with and was told that the price for each buffalo was R400,000, which he thought was reasonable.
Sourced : ILO
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