The EFF has called for tough action against banks and banking executives involved in currency manipulation.
The party was reacting after an agreement between the Competition Commission, and United Kingdom based, Standard Chartered Bank (SCB), over currency manipulation. The bank admitted to manipulating currency trading in South Africa in 2019, and agreed to pay a penalty of R42.7 million.
Currency manipulation has severe implications for exports and imports, and the valuation of a country’s economy. It is the consumers who suffer the consequences of currency manipulation, as many of the products sold in South Africa are imported.
SCB is one of the 28 banks prosecuted by the Competition Commission for manipulating the USD/ZAR currency pair. The latest settlement ends an eight-year-long litigation between the Commission and SCB over the currency manipulation allegations.
The Commission said Citibank N.A had already settled for similar conduct with the Commission in 2017.
The SCB settlement agreement has been filed with the Tribunal for confirmation.
“The Commission welcomes SCB’s decision to reach a settlement on this matter and encourages other respondent banks to consider settling the complaint against them. Further, this settlement affirms the Commission’s pursuit of allegations related to the manipulation of the USD/ZAR currency pair, given the ultimate impact of the currency manipulation on the value of the South African Rand,” said Competition Commissioner Doris Tshepe.
The EFF said when it had raised the matter of currency manipulation, the former Finance Minister Tito Mboweni, and the National Treasury had ridiculed it, and denied that there was currency manipulation to protect (former ABSA CEO) Maria Ramos and a “cabal” in the banking sector; and refused to consider that there was “such treacherous and criminal conduct on the economy.”
“We are, therefore, not shocked by commentators in the mainstream media who are trivialising the matter to downplay the severe nature of this corruption, fraud and treachery. Instead, they have gone as far as misleading the public to imply that Standard Chartered did not admit guilt, despite the Competition Commission clearly stating that the bank admitted to currency manipulation,” said EFF national spokesperson, Sinawo Thambo
“Consequently, the EFF maintains that all those who admit guilt to the charges of currency manipulation must lose their banking licenses. The directors and staff members who were involved must also be prosecuted, and their assets must be seized”.
Thambo called on the Competition Tribunal to fast-track the cases of the remaining banks that allegedly participated “in this corrupt scheme that was designed to profit from the suffering of our people.”
“It is concerning that the Competition Commission made their initial findings in 2017 and to this date, no one has been prosecuted and sent to prison, while many of those involved continue to enjoy the benefits of this corrupt practice.
The failure to deal with currency manipulation, however, is just a symptom of a banking sector that is a law unto itself.
“The South African Reserve Bank has failed to oversee the banking sector because of friendship based nepotism, which has led to the revolving door of staff members between the banks, the National Treasury, and the Reserve Bank,” Thambo added.
