South Africa’s Central Bank Explains Investigation into President Ramaphosa’s Game Farm Currency Controversy
South Africa’s central bank governor, Lesetja Kganyago, has defended the bank’s yearlong investigation into whether President Cyril Ramaphosa violated the law by keeping foreign currency at his game farm, which was later stolen. Responding to lawmakers who criticized the bank’s findings as a whitewash, Kganyago stated that the central bank’s investigators acted impartially and with integrity.
Last week, the central bank released its inconclusive findings, stating that the transaction between Ramaphosa and a Sudanese businessman for 20 buffaloes was not deemed perfected. As a result, the bank could not conclude that there was a contravention of the Exchange Control Regulations. Members of parliament threatened to challenge the report in court, arguing that the central bank’s investigation was limited in scope and highlighted concerns about South Africa’s ability to combat money laundering.
In February, the Paris-based Financial Action Task Force added South Africa to its gray list due to deficiencies in addressing illicit financial flows. However, Kganyago affirmed that the central bank’s investigation focused on the interpretation of the law regarding exchange controls and did not directly implicate money laundering.
The central bank’s investigation was initiated after Arthur Fraser, the former spy boss, accused Ramaphosa of money laundering, fraud, and corruption. Fraser alleged that Ramaphosa attempted to cover up the theft of over $4 million from the sale of buffalo at his Phala Phala game farm in 2020. Ramaphosa denied breaking any laws and claimed that only $580,000 was stolen.
Kganyago clarified that it was not the central bank’s role to address why the transaction was conducted in cash instead of using a bank guarantee or electronic transfer. He emphasized that the bank’s investigators did not have access to the contract between the buyer and seller. However, Kganyago assured that the central bank would cooperate with law enforcement agencies responsible for investigating criminal activities, even though it falls outside the bank’s remit.
