African Transformation Movement (ATM) leader Vuyo Zungula has called for those responsible for the rand manipulation to be held accountable.
On Monday, Zungula wrote to National Assembly Speaker Thoko Didiza in a bid to get the National Assembly to probe the conduct of local and international banks’ involvement in the rand manipulation scandal. More than 28 banks allegedly colluded and fixed the South African currency more than 10 years ago.
In November last year, the Competition Commission hosted hearings into the rand manipulation saga.
In February, the commission said the case was being taken to the Constitutional Court as it applied for leave to appeal against the Competition Appeal Court’s judgment made in January.
The commission has indicated that it was pursuing its case against 19 of the initial 28 banks identified in the investigations, with the fate of 13 banks said to be dependent on the Constitutional Court’s decision, while six others are compelled to answer for their involvement in the scandal.
In a statement on Monday, Zungula confirmed that his party has written to Parliament, seeking a commission of inquiry to be established to probe the scandal further.
In a letter, dated August 26, Zungula asked for Didiza’s intervention, through a draft resolution, to further investigate the manipulation of the rand by the financial institutions.
“The ATM hereby submits a draft resolution in accordance with Rule 119 of the National Assembly Rules which allows members to propose a topic of discussion to be considered by the House.
“The House notes the recent dismissal of the Competition Commission’s case against the majority of implicated banks raises significant concerns about potential rand manipulation involving both national and international banks.
“The House further notes that the Competition Commission’s investigation, known as the ‘Forex Cartel’ case, has been ongoing for eight years, yet the Competition Appeals Court recently dismissed the case against all but four banks, citing jurisdictional issues and perceived overreach.
“The House acknowledges that these developments necessitates a thorough parliamentary inquiry to uncover the full extent of these allegations and their implications for the South Africa economy and public confidence in our financial systems,” he wrote.
Zungula said the party had resolved to call for a parliamentary inquiry, under Rule 223 of the rules of the National Assembly and Section 55(2) of the country’s Constitution, in order to get to the bottom of the rand manipulation allegations.
“ATM resolves to investigate allegations of rand manipulation thoroughly, assessing the validity and scope of these allegations and determining the involvement of both local and international banks.
He said the impact of the alleged manipulation on the South African economy, including exchange rates, imports, exports, foreign direct investment, public and private debt and company balance sheets, needed to be examined.
Zungula also wants the inquiry to review regulatory oversight mechanisms, assess the Competition Commission’s handling of the case, be free, fair and transparent and be concluded within a reasonable time frame.
The Star