By: Natasha Archary
The South African Reserve Bank (SARB) has finalised its investigation and report into the Phala Phala matter, concluding that President Cyril Ramaphosa is clear of any wrongdoings.
SARB concluded its Phala Phala investigation on 14 August, which was done in two phases. The initial phase involved a consideration of internal information and databases, and the analysis of cross-border foreign exchange transactions over the relevant period.
This was followed by a more comprehensive phase involving FinSurv requesting and receiving additional information and documents, supplemented by statements and/or affidavits and, thereafter, conducting interviews with various individuals, and liaising with third parties.
Based on the information, documentation and evidence received and considered as part of the investigation, the legal framework applicable to exchange controls, the mandate of the SARB and FinSurv and legal advice, the SARB then finalised its investigation and report in this matter.
SARB’s findings were that there were no perfected transaction and thus cannot conclude that there was any contravention of the Exchange Control Regulations (the applicable Regulation is Regulation 6(1)) by Ntaba Nyoni Estates CC (the entity involved) 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 Governor will provide feedback within the applicable legal constraints to Parliament during the SARB’s upcoming engagement with Parliament.”
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