Phala Phala: SARB clears Ramaphosa – but also says this

In what is probably considered good news for President Cyril Ramaphosa, the South African Reserve Bank (SARB) says it cannot conclude either he or Ntaba Nyoni Estates, which owns the Phala Phala farm, violated foreign exchange laws in the selling of Ankole cattle.

The SARB released the findings of its investigation on Monday morning, 21 August 2023, after approximately a year.

HOW WE GOT HERE: Back in June 2022, Fraser laid criminal charges against Ramaphosa, claiming that he concealed the theft of R62 million that had been kept on his farm in Phala Phala, Limpopo two years ago. He also alleges that the suspects were kidnapped and interrogated, before being offered money for their silence. Ramaphosa has admitted there was a robbery on his property, but denies being criminally liable and says the monies stolen were proceeds from the sale of cattle on his farm.

As previously reported, Sudanese businessman Hazim Mustafa confirmed that he purchased the animals in cash over the festive period in 2019. He told Sky News that he was in Limpopo to celebrate Christmas and his wife’s birthday and brought the cash through the airport because “$580 000 is nothing for a businessman like [him].”

RAMAPHOSA ‘NOT LEGALLY ENTITLED’ TO FOREIGN CURRENCY

In a statement, The SARB says the transaction (meaning the sale of the Ankole buffalo) was “not perfected” as Mustafa never received the cattle he paid for. This means there was no legal obligation for President Cyril Ramaphosa and Ntaba Nyoni to have declared the foreign currency under exchange control regulations.

“On the facts available to it, the SARB finds that there was no perfected transaction and thus the SARB cannot conclude that there was any contravention of the Exchange Control Regulations (the applicable Regulation is Regulation 6(1)) by Ntaba Nyoni Estates CC (the entity involved) or for that matter by the President. That is because the SARB has concluded that the transaction in question was subject to conditions precedent which were not fulfilled, and therefore there was no legal entitlement, within the meaning of Regulation (6)(1), on the part of Ntaba Nyoni Estates CC, to the foreign currency”

South African Reserve Bank

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