The ANC's economic transformation head, Mmamoloko Kubayi, on Tuesday accused the treasury of attempting to usurp President Cyril Ramaphosa’s powers. (Photo by Jack Taylor/Getty Images)
The South African Reserve Bank (Sarb)has cleared President Cyril Ramaphosa of allegations of breaking foreign exchange rules related to millions in hard currency that was stolen from his Phala Phala farm in 2020.
In a statement on Monday, Reserve Bank governor Lesetja Kganyago said the central bank’s financial surveillance department had completed its 12-month investigation, which had involved considering dozens of documents and related information, running into hundreds of pages; 15 affidavits or statements; and undertaking formal interviews with the relevant individuals.
The Reserve Bank said the full report would not be released to the public because of legal constraints and it is a “private and internal report”.
The Reserve Bank said it initiated the investigation after former spy boss Arthur Fraser and others, including political parties, filed a complaint alleging Ramaphosa had contravened the Prevention of Organised Crime Act by failing to report a burglary at his farm.
The Reserve Bank said in Monday’s statement it had found Ramaphosa had not contravened South Africa’s exchange control regulations.
“On the facts available to it, the Sarb finds that there was no perfected transaction and thus the Sarb cannot conclude that there was any contravention of the Exchange Control Regulations … by Ntaba Nyoni Estates CC (the entity involved) or for that matter by the president,” it said.
“That is because the Sarb has concluded that the transaction in question was subject to conditions precedent which were not fulfilled, and therefore there was no legal entitlement, within the meaning of Regulation (6)(1), on the part of Ntaba Nyoni Estates CC, to the foreign currency.
“It is pertinent to recognise that the scope and purpose of the investigation and report in this matter are limited to whether there were exchange control violations, in terms of the Exchange Control Regulations of 1961, in respect of the foreign currency allegedly stolen from the Phala Phala farm on 9 February 2020.
“Other matters and where they may relate to the breach (if any) of any other law or otherwise, are matters which are to be addressed by the relevant authorities (not the Sarb).”
The Reserve Bank said the financial surveillance department had conducted its investigation in two phases, with the initial one involving a consideration of internal information and databases and the analysis of cross-border foreign exchange transactions over the relevant period.
This was followed by a more comprehensive phase involving the department requesting and receiving additional information and documents, supplemented by statements and affidavits and thereafter, conducting interviews with various individuals and liaising with other parties. It also sought and obtained legal advice in relation to its investigation and the process it followed.
Ramaphosa was also vindicated in June when acting public protector Kholeka Gcaleka cleared him of the allegations, finding he had not taken another job while serving as president and had not violated the members ethics code. She also found that he had reported the burglary by informing his head of security about it.
The source of the foreign currency is believed to have been a $580 000 cash payment for 20 buffalo at Ramaphosa’s Limpopo game farm. A Sudanese businessman allegedly gave the cash to the Phala Phala farm manager but never took delivery of the animals.
The presidency had not responded to a request for comment by the time of publication.