Cape Town – The South African Reserve Bank (SARB) has determined that President Cyril Ramaphosa’s Ntaba Nyoni Estate did not have a legal entitlement to the $580 000 received from Sudanese businessman Hazim Mustafa for the sale of 20 buffalo from the Phala Phala game farm.
The transaction was not completed as Mustafa did not receive the buffalo, relieving Ramaphosa and Ntaba Nyoni from declaring the foreign currency under exchange control regulations.
“On the facts available to it, the SARB finds that there was no perfected transation and thus the SARB cannot conclude that there was no contravention of the Exchange Control Regulations… by Ntaba Nyoni Estates CC or that that matter by the President,” SARB said in a statement on Monday.
While the SARB will not release the full report, it acknowledged the significant public importance of the matter and disclosed its findings.
“Due to legislative requirements and constraints which apply to the Sarb, the report by the Sarb into this matter is a private internal report and will not be made available to the public,” it said.
#SARB clears Ramaphosa on #PhalaPhalaFarmGate but cannot release the entire report because of legislative constraints. pic.twitter.com/8BJ9sVsfDi
— Sebenzile Nkambule (@SebeNkambule) August 21, 2023
The investigation took nearly a year and involved numerous affidavits, documents, and interviews.
“The initial phase involved a consideration of internal information and databases and the analysis of cross-border foreign exchange transactions over the relevant period. This was followed by a more comprehensive phase involving FinSurv requesting and receiving additional information and documents, supplemented by statements and/or affidavits and thereafter, conducting interviews with various individuals and liaising with other parties.
“FinSurv also sought and obtained legal advice in relation to its investigation and the process it followed. Based on the information, documentation and evidence received and considered as part of the investigation, the legal framework applicable to exchange controls, the mandate of the Sarb and FinSurv and legal advice, the Sarb then finalised its investigation and report,” it said.
The SARB’s jurisdiction was limited to investigating potential exchange control violations related to foreign currency allegedly stolen from the Phala Phala farm in February 2020.
The investigation found that since the transaction lacked fulfillment of necessary conditions (delivery of the animals), there was no legal entitlement for Ntaba Nyoni Estates CC to the foreign currency.
The criminal probe into the matter by the Hawks is still ongoing.
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Compiled by Betha Madhomu
