SA Reserve Bank continues to probe Ramaphosa over Phala Phala foreign currency scandal

President Cyril Ramaphosa .Picture : Phando Jikelo/African News Agency(ANA)

President Cyril Ramaphosa .Picture : Phando Jikelo/African News Agency(ANA)

Published Aug 31, 2022

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SIYABONGA SITHOLE

SA Reserve Bank (SARB) Governor Lesitja Kganyago says it is probing President Cyril Ramaphosa over the Phala Phala farm matter.

In a letter to opposition parties on Tuesday, Kganyago gave opposition parties an update on the central bank's investigations on the Phala Phala matter. The letter outlines some of the details of an ongoing investigation, adding that the Financial Surveillance Department (FSD) which regulates exchange control has been in communication with the president and his advisers to ensure that the matter is fully probed.

The Reserve Bank's updates come after the alleged theft of undeclared foreign currency at Ramaphosa's Phala Phala farm in February 2020 which was not reported to the police. The theft and robbery at the farm was eventually laid bare by former state security agency head Arthur Fraser who opened a case at the Rosebank police station on June 1, 2022.

This letter by the governor of the Reserve Bank coincided with the Cabinet's question and answer sitting in Parliament in which President Ramaphosa ducked and dived in responding to the Bela Bela farm robbery, with Ramaphosa saying the matter is the subject of multiple investigations.

According to the letter, the FSD initially asked Ramaphosa's advisers on June 20, 2022 for details on the origins of the foreign currency at his farm, as well as other transactions.

After being given 21 days to respond, with another 15 days extension, the department says it received responses from the advisers to which further information was sought, resulting in the deadline of September 8, 2022.

"I can assure you that the FSD of the SARB administers the exchange control regulations and investigates contraventions thereof. Following the allegations presented in the media reports regarding the alleged theft of foreign currency at the Phala Phala farm, the department requested the legal advisers of the President on June 20, 2022, to provide details regarding the origin of the foreign currency and any underlying transactions it may pertain to," Kganyago’s letter read.

The FSD's deadline of September 8, 2022 comes a day before opposition parties plan to march to the office of the anti corruption ombudsman to demand the release of the report into the Phala Phala farm theft.

The SARB says it treats all citizens equally and does not discriminate on the basis of social standing and will do everything in its power to hold Ramaphosa accountable.