/ 10 January 2002

Probe into rand to begin next week

Johannesburg | Thursday

THE head of the commission of inquiry into the rand’s depreciation, advocate John Myburgh, has indicated that investigations could begin by the end of next week, around January 18, Business Day reports.

The paper quoted Myburgh as saying that President Thabo Mbeki still had to appoint other members of the commission, and that investigators such as lawyers, forensic auditors and currency dealing experts also needed to be identified.

Myburgh said he thought the inquiry would be conducted in two stages, with the first comprising the actual investigative groundwork and the second the sitting of the commission and its hearing of evidence.

President Thabo Mbeki announced on Tuesday that Myburgh, the former Judge President of the Labour Appeals Court, would head the commission of inquiry into the recent decline of the value of the rand.

Myburgh would be assisted by an unspecified number of skilled commissioners, yet to be appointed.

Mbeki’s announcement came in response to a letter from SA Chamber of Business (Sacob) chief executive Kevin Wakeford, stating that ”dubious financial methods” could have contributed to the demise of the rand in recent weeks.

Wakeford said in a statement he provided the president with information backing his suspicions.

Two leading foreign banks, Deutsche Bank and JP Morgan, on Wednesday denied rumours that they had a hand in the crumbling of the rand.

Newspaper reports quoted officials from both banks, vigorously denying industry gossip that they could have been involved in currency manipulation.

Meanwhile, the Reserve Bank said it could not comment on news reports that it would meet with commercial banks on Wednesday.

”That rumour has been going around for a few days, but I cannot give any comment,” representative Cathy Powers said.

Standard Bank representative Africa Boso said he spoke to the bank’s chief executive officer who had no knowledge of such a meeting.

Absa representative Steve Matthewson also said he had not been informed of a meeting. – Sapa