Reserve Bank blasted: Phala Phala outcome sparks public trust controversy

The South African Reserve Bank (Sarb) has compromised its integrity and public trust, according to experts and opposition parties – who claim political meddling in state affairs.

The bank yesterday cleared President Cyril Ramaphosa of any wrongdoing in its investigation into the millions of undisclosed foreign currency stolen from his Phala Phala farm in 2020.

Following a year of investigations, the Sarb said in its report it “cannot conclude” that Ntaba Nyoni Estates CC (the entity involved) or Ramaphosa flouted foreign exchange control laws.

READ: SARB ‘unwittingly confirmed our suspicions that there was never a transaction’, says EFF

The bank confirmed it finalised its investigation last week Monday, following allegations made by former correctional services boss Arthur Fraser and complaints by numerous parties.

“On the facts available to it, the Sarb finds that there was no perfected transaction and thus the Sarb cannot conclude that there was any contravention of the Exchange Control Regulations (the applicable Regulation is Regulation 6(1)) by Ntaba Nyoni Estates CC or for that matter by the president,” Governor Lesetja Kganyago said in his report.

“That is because the Sarb has concluded that the transaction in question was subject to conditions precedent which were not fulfilled, and therefore there was no legal entitlement, within the meaning of Regulation (6)(1), on the part of Ntaba Nyoni, to the foreign currency.”

However, director of student governance and development at the Nelson Mandela University, Dr Bernard Sebake, said: “It means money can come and get out of the country – and here I’m talking about foreign currency – without the Reserve Bank accounting for it, it looks very worrisome.

“The challenge is that the report from any state-owned or state-related apparatus is no longer trustworthy because from the lenses of the opposition parties and civil organisations, it’s simple political meddling on the situation in order to do nothing but to protect the president.”

Sebake added that the matter was “not about to die down despite ample protection he receives, because (acting) public protector Kholeka Gcaleka’s report, which also cleared Ramaphosa, to be put under judicial review”.

He added: “The same should be done with the Reserve Bank. It should be put under similar scrutiny, through the test of legality of such findings that they are bringing to the fore.”

North-West University professor and political analyst André Duvenhage said the report was making things a lot easier for Ramaphosa, despite the debate in political circles claiming he was guilty.

“There are concerns about the basis for finding him innocent, because if you have something like $4 million (according to Fraser) under the mattress of your bed, then how do you explain this?

“But he probably found a way of explaining it. The Sars report was probably the most difficult part to get away with. I think this cleared the way for him, and will make his position stronger within the ANC. But, I won’t be surprised if there will be private investigations continuing,” said Duvenage.

ActionSA has began consulting its legal representatives and vowed to continue following all possible avenues to ensure Ramaphosa “does not get away with his possible unlawful actions”.

“We firmly believe the Sarb investigation is another attempt to cover up Ramaphosa’s involvement in the burglary,” said ActionSA leader Herman Mashaba.

“ActionSA is furthermore dismayed that the Phala Phala report will remain private. If the president has nothing to hide, why would the report not be released for public consumption?”

The Economic Freedom Fighters rejected the report, saying foreign exchange laws must not be abused to protect Ramaphosa from prosecution because the establishment prefers him.