EFF statement on South African Reserve Bank’s statement on the Phala Phala investigation
21 August 2023
The Economic Freedom Fighters (EFF) notes and rejects, with contempt, the South African Reserve Bank (SARB) report on the Phala Phala investigation that seeks to exonerate Cyril Ramaphosa from financial crimes that breach foreign exchange laws.
The SARB investigation comes after the EFF demanded an investigation, and we were aware that within the current climate, there was always a high possibility that there would be abuse of the SARB to exonerate Ramaphosa.
In their pathetic and poor attempt to cleanse Ramaphosa of the Phala Phala crimes, the SARB has unwittingly confirmed our suspicions that there was never a transaction or intention to have a legal transaction. Instead, the intention was to launder money through Phala Phala, as we have consistently maintained that Ramaphosa uses his farming business as a front for money laundering.
It is common cause that foreign currency entered the shores of South Africa unlawfully because the South African Revenue Services (SARS) at the OR Tambo Airport, where the so-called businessman Hazim Mustafa came through, has no record of such foreign currency. This on its own is prima facie evidence of criminal conduct that leads to Ramaphosa.
Ramaphosa himself acknowledged receipt of this unlawful currency, which was later stolen. He was in possession of foreign currency that entered SouthAfrica's borders beyond the 30 days allowed by Section 7 (1) of the Foreign Exchange Regulations of the SARB.
SARB is duty-bound to register the flow of funds and police movements of currency within South Africa's borders. The mandate of the SARB is not to police whether transactions were concluded or not, or whether goods were delivered or not after a purchase. This report is, therefore, a poor attempt by the SARB to avoid carrying out their mandate and ensure that Ramaphosa is not held accountable for contravening foreign exchange regulations.
The EFF maintains that, over and above the criminal case of foreign exchange regulations, in the absence of records at the SARB and SARS, there is now a case of tax evasion and money laundering.
The SARB claims in its nonsensical findings that there "was no perfected transaction", meaning that the transaction was not finalised, notwithstanding that it is at no point their jurisdiction to make such a determination with regards to the illegal flow of foreign currency into South Africa.
The question South Africans should ask themselves is, if there was no "perfected" transaction, then why was the transaction registered in the books of Ntaba Nyoni Estates CC and how did SARS determine that Ntaba Nyoni, which is solely controlled by Ramaphosa is tax compliant?
Additionally, all law-abiding citizens should ask themselves, if "no perfected transaction" was performed, then why was there $580 000 stashed in Phala Phala Farm and for what purpose was it?
Our foreign exchange laws must not be abused in an attempt to protect Ramaphosa from prosecution simply because the establishment prefers him.
They are able to use him to carry out their destructive policy that seeks to maintain high levels of poverty, inequality, and unemployment.
Furthermore, the financial sector continues to enjoy unearned profits on the back of the struggling middle class who continue to lose livelihoods and properties. The EFF will, therefore, seek legal advice to consider taking the matter to court to force the SARB to do its job and not undermine foreign exchange laws.
Issued by Sinawo Thambo, National Spokesperson, EFF, 21 August 2023
