Now Reserve Bank targets Ramaphosa over ‘Farmgate’
As the furore over President Cyril Ramaphosa’s refusal to address the Phala Phala saga in the National Assembly continues, the SA Reserve Bank (SARB) has revealed that he did not report the foreign exchange transaction that was the source of the US dollars stolen from his farm, as required by law.
This is according to his own response to the bank which administers SA’s exchange control regulations and investigates contraventions.
In addition, Ramaphosa – who endured a chaotic Q&A session on Tuesday – has yet to respond adequately to the central bank, which has written to his lawyers asking for details of the transaction.
In a letter to Parliament's Standing Committee on Finance this week, Reserve Bank governor Lesetja Kganyago said its Financial Surveillance Department had written to Ramaphosa's legal advisors on 20 June requesting ‘information and details regarding the origin of the foreign currency and any underlying transaction that may pertain to it’.
Fin24 reports that the bank had initially given Ramaphosa 21 business days to respond to the letter and subsequently granted an extension of 15 working days.
Kganyago's letter to the committee follows letters written to it by two of the committee members EFF deputy leader Floyd Shivambu and the DA MP Dion George.
Kganyago's letter requesting information confirms that Ramaphosa did not report the transaction as required by law.
Business Day reports that Kganyago said the Reserve Bank applied exchange control policy consistently and equally to all SA residents, and it was its practice to investigate matters brought to its attention where reasonable grounds existed to believe that contraventions of exchange control regulations had taken place.
However, it did not comment on, or provide any details about, its investigations.
EFF spokesperson Sinawo Thambo said the SARB had effectively stated that it had no knowledge of the foreign currency allegedly kept by Ramaphosa in mattresses.
‘This is confirmed by the fact that the response from the SARB still seeks to establish the origin and underlying transaction of the foreign currencies, meaning the money was never declared to them as a regulator of foreign currency,’ Thambo said.
The Star reports that he said the EFF had been consistent in raising concerns regarding the origin of the money which was stolen at Phala Phala farm, and whether it was declared to the relevant financial authorities.
‘This is because Ramaphosa insists on portraying himself as a victim of crime, while the money which was stolen from him were proceeds of crime,’ Thambo claimed.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
