Phala Phala: SARB clears President Cyril Ramaphosa of any wrongdoing, Not Legally Obligated to Disclose Forex

President Cyril Ramaphosa has been exonerated of wrongdoing in the Phala Phala farm theft scandal by the South African Reserve Bank

• The SARB found that Ramaphosa was not legally obligated to declare the $580 000 paid to the farm because the transaction was not perfected
• South Africans have mixed feelings about the report, with some alleging that the SARB has been captured

JOHANNESBURG - President Cyril Ramaphosa has been cleared of any wrongdoing concerning the Phala Phala farm theft scandal by another organisation.

The South African Reserve Bank (SARB) stated on Monday, 21 August, that the president did contravene the Exchange Control Regulations.

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The SARB launched an investigation into Ramaphosa after it was discovered that $580 000 (over R10 million) was stolen from his game farm in Limpopo in 2020. The money was reportedly paid to the farm by a Sudanese businessman Hazim Mustafa for 20 buffalos, reports News24.

The question on many people's minds was whether the funds were disclosed to the SARB and the South African Revenue Service (SARS).

Ramphosa did not have to declare the Phala Phala funds

According to a report released by SARB Governor Lesetja Kganyago, since the transaction for the 20 buffalos was never perfected and Mustafa never received the buffalos, Ramaphosa and Ntaba Nyoni Estate had no legal obligation to declare the foreign currency under exchange control regulations.

In June this year, the acting Public Protector Advocate Kholeka Gcaleka also cleared Ramaphosa of any wrongdoing in her much-anticipated Phala Phala report.

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Gcaleka investigated whether Ramaphosa had violated the Executive Members Ethics Code for his involvement in Phala Phala. According to EWN, the acting PP found that Ramaphosa did not take on another job at Phala Phala, which means he did not violate his oath of office.

The latest reports that cleared Ramaphosa contradict the Section 89 report Inquiry that found the president may have violated his oath of office.

Mzansi shares thoughts on Ramaphosa's victory

@spyda501 said:

"This SARB Phala Phala Report media release has raised serious alarms. With an air of secrecy and elitism, it demonstrates a disregard for transparency and accountability—cornerstones of any democratic society. "

@ThibosAfrika said:

"Finally, this will open doors for travellers to land with millions of US dollars at the airport."

@khumlabantji said:

"It's not surprising, we expected that conclusion from them."

@PhilaPaul said:

"This is State Capture... The big bank is captured."

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@tsonga_outlier said:

"According to SARB's Currency and Exchanges Guidelines for Business Entities, the farm cannot accept cash payments in foreign currency from non-residents. Why is this matter being ignored?"

@Gjing_superman said:

"Interesting. SARB says there was no "perfected transaction", meaning there was no actual sale. So they can't rule on a contravention of the Exchange Act when there is no transaction, basically."

Phala Phala businessman still wants his Ankole

Briefly News previously reported that the Dubai- based businessman who bought the Ankole buffaloes that started the whole Phala Phala drama is still keen to complete the transaction when the investigation into the scandal is completed.

Hazim Mustafa said he would send legal representatives to the country to finalise the exportation of the livestock. Still, he indicated that he would request a refund if the buffaloes were not up to his standard.

The man said he was aware of the probe into the scandal, adding that both the police and the Public Protectors Office had contacted him about the matter telephonically and via email.

Source: Briefly News