Calls for government to institute a commission of inquiry into the rand manipulation scandal continue to grow with the National Freedom Party (NFP) also urging President Cyril Ramaphosa to formally probe the involvement of 28 banks in the rigging of the rand between 2007 and 2023.
This week, Standard Bank CEO Sim Tshabalala denied the financial institution’s involvement in the rand manipulation saga following reports that the bank alongside Standard Chartered Bank (SCB) had participated in the rand manipulation with other local and international banks.
Early this month, the UK-based Standard Chartered Bank admitted to their involvement in the manipulation of the rand and agreed to pay a penalty of R43 million for its involvement in the global monetary manipulation affair.
There were reports that Standard Bank was also being investigated, but Tshabalala has distanced the lender from the scandal insisting that it was not in any way involved.
“We have looked at our call logs, we have looked at documentation, we have looked at people’s calls. And I can tell you that our traders conduct themselves with impeccable rectitude, as do our salesmen and women, and we have found no such evidence,“ Tshabalala said.
It has been reported that at least 28 banks have been implicated in the collusion that has caused the South African rand to suffer massive losses for over 10 years.Tshabalala also indicated that the past week has been very difficult for the bank.
“Last week was difficult. Standard Bank was once again publicly accused of currency manipulation, of being opposed to the South African government, and – in some quarters – even of treason. Standard Bank has not manipulated the value of the rand. Standard Bank has not engaged in any anti-competitive or criminal conduct. Standard Bank is committed to always behaving with complete integrity,’” he said.
On Thursday, the South African Reserve Bank (SARB) – whose job it is to protect the value of the rand -- came under fire for its silence over the recent revelations.
However, its governor Lesetja Kganyago, speaking during the announcement of the policy rates on Thursday, told journalists that only the Competition Commission has jurisdiction over the matter.
“Should they require any further assistance from us, they will get it. But they are the competent authority to investigate any allegations of market abuse or market manipulation.
“They must be given the space to do their work and follow their processes and we should not burden them with asking for running commentary. Beyond that, you are not going to get any further comment from the Reserve Bank,” he said.
Tshabalala said should the investigation find any wrongdoing on the part of Standard Bank, those found guilty should be brought to book.
“Where people are guilty of wrongdoing, we will act. Where they are not, we will protect them,” he said.
On Monday, NFP MP Ahmed Munzoor Shaik Emam said the party was concerned over rigging of the rand by major banks.
“We vehemently condemn any attempts at destabilising our economy or orchestrating regime change through unethical financial practices. The manipulation of the rand by major banks, should be a matter of utmost concern for the nation as a whole ... Furthermore, the NFP calls for a thorough and comprehensive commission of inquiry to investigate the extent of this manipulation, its ramifications on the economy, and the involvement of various banks,” Shaik Emam said.
The Star