Johannesburg | Monday
THE commission of inquiry into the rapid depreciation of the rand started in Sandton, Johannesburg, on Monday with the first witness giving a detailed description on the workings of the foreign exchange market.
Robert McCauley, an expert in foreign exchange markets from the Bank for International Settlements, told the commission that the rand market was ”not big, but big enough”.
He said portfolio shifts, including those accomplished through changes and leads and lags were among the most short term determinants of exchange rates.
Finance Minister Trevor Manuel, and Reserve Bank Governor Tito Mboweni are attending.
The first two weeks of the hearing March 4 to 15 will be devoted to hearing the evidence of the SA Reserve Bank, National Treasury, the Banking Council of SA and numerous experts in different disciplines.
The commission is headed by Advocate John Myburgh, SC. He is assisted by commissioners Mandla Gantsho and Christina Qunta.
Several bodies have been appointed to assist investigations.
They include Deloitte & Touche, KPMG, Gobodo Forensic & Investigative Accounting, Brian Ellis Abrahams, Hofmeyr Herbstein & Gihwala Inc and Tabacks Inc.
Hotlines have also been set up for members of the public who believe they have information relevant to the investigations.
Whistleblowers can phone the KPMG hotline number, 0800114711, or the Deloitte & Touche tip-offs line, 0800121314 (South African callers) and 27-31-508-6335 (international callers).
Myburgh has said the commission would, among other things, focus on the relevant transactions of banks, especially those which were authorised dealers.
President Thabo Mbeki was prompted to set up the commission after SA Chamber of Business chief executive Kevin Wakeford sent him a letter saying the rapid depreciation of the rand at the end of last year was suspicious.
The hearings will start at 10am in Committee Room 4, Level 4 of the Sandton Convention Centre. – Sapa