Call for inquiry into banks' forex cartel claims

The African Transformation Movement (ATM) is forging ahead with its plans to have Parliament establish an inquiry into the allegations of rand manipulation involving national and international banks. A Cape Times report says the banks were accused of engaging in ‘conduct considered the most egregious in competition law’. The alleged conduct related to fixing and manipulating the rand/dollar exchange rate. The Competition Commission alleged that between 2007 and at least 2013, 28 banks from multiple jurisdictions in Europe, SA, Australia and the US conspired to manipulate the rand through information sharing on electronic and other platforms and through various co-ordination strategies when trading in the USD/ZAR currency pair. In its submission to National Assembly Speaker Thoko Didiza for a parliamentary inquiry, ATM leader Vuyo Zungula said: ‘Given the recent developments and the significant concerns raised by the dismissal of the Competition Commission’s case against the majority of implicated banks, we believe this inquiry is crucial for maintaining public confidence in our financial system and economic governance.’ His draft resolution noted that ‘the Competition Commission’s investigation – known as the ‘forex cartel’ case – has been ongoing for eight years, yet the Competition Appeal Court recently dismissed the case. ‘These developments necessitate a thorough parliamentary inquiry to uncover the full extent of these allegations and their implications for the SA economy and public confidence in our financial system.’ The party, through the resolution, said it also seeks to assess the role and effectiveness of the Competition Commission in handling this investigation, ‘including any procedural or evidentiary shortcomings, and evaluating whether the commission’s resources and powers are adequate for investigating complex financial crimes’. A parliamentary spokesperson confirmed the request had been received and was being processed.

Full Cape Times report