‘Confirmed our suspicions’- EFF may take Reserve Bank to court over Phala Phala decision

The Economic Freedom Fighters (EFF) says the South African Reserve Bank (SARB) has “unwittingly” confirmed its suspicions there was never a transaction or intention to have a legal transaction at President Cyril Ramaphosa’s Phala Phala farm in Limpopo.

This after the bank on Monday released a report clearing Ramaphosa of wrongdoing in the 2020 Phala Phala farm scandal.

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The report will not be made available to the public due to “legislative requirements and constraints”, it said on Monday.

“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… by Ntaba Nyoni Estates CC or for that matter by the president.

“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 Estates CC, to the foreign currency,” the SARB said.

Money laundering allegations against Ramaphosa

In a statement, the EFF rejected the SARB report on the Phala Phala investigation, but said it it confirmed its suspicions about the business dealings at Ramaphosa’s farm.

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“Indeed, the intention was to launder money through Phala Phala, as we have consistently maintained that Ramaphosa uses his farming business as a front for money laundering,” alleged the EFF.

“The question South Africans should asks themselves is, if there was no ‘perfected’ transaction, then why was the transaction registered in the books of Ntaba Nyoni CC and how did Sars determine that Ntaba Nyoni, which is solely controlled by Ramaphosa, is tax compliant?”

“The EFF will seek legal advice to consider taking the matter to court to force the SARB to do its job and not undermine foreign exchange laws.”

Responding to questions in parliament last year, Ramaphosa denied money laundering allegations that have repeatedly been made against him.

“I deny there was any form of money laundering. It was proceeds of the sale of game. I have been a game farmer for a number of years,” he said.

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“I have disclosed that I have been a game farmer for a number of years and that is an activity that sometimes results in the sale of animals such as cattle and buffalo. That is a matter that takes place from time to time,” he said at the time.

‘Strained interpretation of law’

The African Transformation Movement also rejected the SARB findings, saying the conclusion that there was no perfected transaction “appears to be a strained interpretation of the law”.

“This interpretation seemingly seeks to create loopholes in order to shield the president from the consequences of his actions. Such a stance undermines the very essence of the regulatory oversight.”

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However, the African National Congress (ANC) says it sees nothing wrong with the report.

“The determination by the South African Reserve Bank that President Cyril Ramaphosa did not violate any Exchange Control Regulations is unambiguous and definitive,” it said.

“The African National Congress expresses its satisfaction with this conclusion and anticipates that all baseless accusations will be dispelled.

“The process followed with subsequent findings by the Reseve Bank vindicates our view that South Africa is a robust democracy with resilient oversight and regulatory institutions.”

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