Mixed reaction by political parties after SARB findings clear Ramaphosa of any wrongdoing

President Cyril Ramaphosa meets with the South African Reserve Bank Governor Lesetja Kganyago. PHOTO: Supplied/GCIS

President Cyril Ramaphosa meets with the South African Reserve Bank Governor Lesetja Kganyago. PHOTO: Supplied/GCIS

Published Aug 21, 2023

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The African Transformation Movement (ATM) said it vehemently rejects the finding that exonerated President Cyril Ramaphosa from any wrongdoing in the Phala Phala farm investigation.

The South African Reserve Bank (SARB) this morning said it finalised its investigation and report into the Phala Phala matter on August 14, 2023.

“Due to legislative requirements and constraints which apply to the institution, the report by the SARB into this matter is a private internal report and will not be made available to the public,” said SARB governor Lesetja Kganyago.

The party rejects finding that Ramaphosa and Ntaba Nyoni did not violate regulations pertaining to the acceptance of foreign currency and the subsequent failure to inform the SARB.

“It is our firm belief that the evidence strongly suggests otherwise.

“The facts are that the president’s foreign currency which he received from the sale of game in 2019, was in the country illegally.

“This foreign currency was not even declared and disclosed to the relevant government financial regulatory agencies.

“Instead it was stuffed in furniture and kept at the president’s farm for longer than it was legally permitted to do so,” said ATM national spokesperson Zama Ntshona.

He said in direct contradiction to the findings of the SARB, it is evident that Ramaphosa did indeed breach Regulation 6(1) of the Exchange Control Regulations.

Ntshona said the president accepted foreign currency in December 2019, and this transaction was confirmed by both the president and Sars.

He then chose to keep the foreign currency on his property for an additional two months without declaring the cash, despite Regulation 6(1) of the Exchange Control Regulations, stating that cash has to be declared within 30 days.

“Additionally, the assertion made by the SARB 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 regulatory oversight,” said Ntshona.

He said earlier this year, Sars had issued a Tax Compliance Statement, confirming that indeed a $4 million transaction did in fact take place at Ramaphosa’s Phala-Phala farm.

“How then did the SARB come to a different conclusion?” asked Ntshona.

The Presidency said it noted the conclusion by SARB.

“The Presidency has noted the completion of the SARB Phala Phala investigation and the subsequent findings,” said Presidency spokesperson Vincent Magwenya.

The EFF said it notes and rejects the findings.

The party said the SARB investigation comes after the EFF demanded an investigation, and they were aware that within the current climate, there was always a high possibility that there would be abuse of the SARB to exonerate Ramaphosa.

“In their pathetic and poor attempt to cleanse Ramaphosa of the Phala Phala crimes, the SARB has unwittingly confirmed our suspicions that there was never a transaction or intention to have a legal transaction.

“Instead, 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,” said EFF national spokesperson Sinawo Thambo.

The ANC said it welcomed and noted the report concerning a transaction that took place on Ramaphosa’s private farm.

“The determination by the SARB that Ramaphosa did not violate any Exchange Control Regulations is unambiguous and definitive.

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

“The process followed with subsequent findings by the reserve bank vindicates our view that South Africa is a robust democracy with resilient oversight and regulatory institutions,” said ANC national spokesperson Mahlengi Bhengu-Motsiri.

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