Katlego Sekhu
Last week, UK-based Standard Chartered Bank reached a settlement with the Competition Commission for colluding with 27 other banks to manipulate the rand. As a result, they have agreed to pay a fine of approximately R43 million to resolve the case.
In light of our previous discussion on the economic implications of this case, 959 Breakfast invited legal expert Mpumelelo Zikalala to shed light on South Africa’s legal recourse in holding these banks accountable.
Zikalala pointed out the immense challenge of attributing the manipulation of bond amounts to a specific month or year. “It is that causal link that makes it difficult for a civilian to be able to prosecute this matter successfully.”
Furthermore, Zikalala elaborated on the challenges faced by banks when it comes to acknowledging their mistakes.
“I don’t think there is any director or shareholder of any bank that wants their director or CEO to stand in the dock and be able to answer these types of questions, even though there is a chance of being successful.”
Zikalala emphasized the complexity of this issue, highlighting the need for the competition tribunal to thoroughly analyze and determine how to impose more impactful penalties.
“How do we make this much more meaningful in terms of the punishment that is there so that it prevents this type of thing from ever happening again?
“The longer short of it is that there are people who lost their houses, cars, and employment due to this widespread manipulation that has taken place.”
Listen to the full discussion on the podcast:
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