EFF MP Floyd Shivambu lambasted South African Reserve Bank (Sarb) Governor Lesetja Kganyago for not responding to a letter asking the central bank to confirm or deny whether President Cyril Ramaphosa had disclosed the foreign currency kept at his Phala Phala farm.
On Wednesday, Kganyago briefed the National Assembly’s Standing Committee on Finance on the Sarb’s and the Prudential Authority’s 2021/22 annual report.
As committee chairperson Joe Maswanganyi was about to ask Kganyago to start his presentation, Shivambu said he wanted to raise the issue of a letter his party sent to the Sarb at the end of June, asking specific questions “about prime facie evidence that was produced on Phala Phala”.
Shivambu said: “We asked the South African Reserve Bank to confirm or deny if they ever interacted with the declarations from the sitting president about the millions of US dollars that were stored in Phala Phala. We also asked if, as the institution that is responsible for foreign currency regulations, what has happened. And the Reserve Bank has not answered to that question. And it is their obligation constitutionally to be accountable to Parliament, and to Members of Parliament, and to the people of South Africa. And the Reserve Bank has not given a specific response on an issue which is of public interest […]”
He said that before the Sarb could proceed with its presentation, it should account for what it has done about the “thus far undenied and undisputed” violations of the foreign currency regulations.
In response, Kganyago said the Sarb did respond to the EFF’s letter – and to similar letters from a number of political parties. He said each letter received the same response.
He said: “Once we get any report of any possible violations of foreign exchange control regulations, we engage with the particular party – whether it is an individual or a company – and it is practice that we do not comment on any of our investigations, because we do not want to undermine the investigations. We are working with the law enforcement authorities on this, and I do not think it would serve us any good trying to get into the details of what is going on. It would undermine the investigations which we are doing.”
‘We are not the media’
Kganyago’s response was not to Shivambu’s liking. He accused the governor of taking MPs “for granted” and reducing Parliament to “some media request for a comment”.
“We are not asking for your comment. We are asking you for accountability as an institution that must enforce foreign currency regulations. We are not asking for a comment from you. We are asking you to confirm if you are doing anything about the violation of the foreign currency regulations.”
Shivambu spoke for some minutes, repeating his points about the Sarb treating MPs as if they were journalists requesting a comment and discoursing on the duty imposed on institutions of state to be accountable to Parliament, in terms of the Constitution and the rules of the National Assembly.
“There is no case that is before a court of law that relates to Phala Phala currently. And there is no reason – none whatsoever – that the Reserve Bank cannot confirm or deny if it is investigating the matter of Phala Phala,” he said at one point.
DA MP Dr Dennis George said his party also wrote to the Sarb and had received a response.
He said, “We are mindful that there are several processes, etc in a fairly complex matter.”
Dr George said there were “lots of issues in our economy that need to be attended to”, so it would be better if the meeting continued with its business and did not get side-tracked.
ANC MP Phoebe Abraham proposed that an urgent special meeting of the committee be arranged that would address the Phala Phala matter only. The Sarb should be given time to prepare a response, because MPs did not want “half-baked answers”.
Abraham’s proposal was seconded by another ANC MP, Kenny Morolong.
Asked by Maswanganyi whether he accepted the proposal, Shivambu returned to his points about the Sarb’s obligation to respond to the letter.
He said the bank’s system told it who “declares foreign currency when it comes into the country”, and therefore an investigation was unnecessary. “They must just respond as to did they receive any declaration of any foreign currency that is alleged to be in the president’s farm.”
Maswanganyi said the Sarb “must attend to this matter and come back to the committee with an adequate response” and invited Kganyago to proceed with his presentation.
But Shivambu again wanted the Sarb to inform MPs when it would inspect its records of people and institutions that have brought money into the country and tell MPs whether the president has made a declaration.
Maswanganyi said the Sarb would have to inform the committee when it was ready to respond to the issues raised in the EFF’s and the DA’s letters.
“If there are difficulties, the Reserve Bank shall indicate to us where are the difficulties, and then we shall take it from there,” he said.
Kganyago was finally able to proceed with his presentation.
