Phala Phala: Why Ramaphosa isn’t off the hook yet
The South African Reserve Bank cleared President Cyril Ramaphosa of any wrongdoing in the sale of buffalo on his Phala Phala farm.
The South African Reserve Bank may have opened a pandora’s box with the release of its probe into the Phala Phala scandal. The Central Bank found that it could not conclude that either President Cyril Ramaphosa or Ntaba Nyoni Estates, which owns the Phala Phala farm, violated exchange control laws in the transaction.
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BACKGROUND: HOW WE GOT HERE
Back in June 2022, former spy boss Arthur Fraser laid criminal charges against Ramaphosa, claiming that he concealed the theft of R62 million that had been kept on his farm in Phala Phala, Limpopo two years before. He also alleges that the suspects were kidnapped and interrogated, before being offered money for their silence. Ramaphosa subsequently admitted there was a robbery on his property, but denied being criminally liable and says the monies stolen were proceeds from the sale of cattle on his farm.
As previously reported, Sudanese businessman Hazim Mustafa confirmed that he purchased the animals in cash over the festive period in 2019. He told Sky News that he was in Limpopo to celebrate Christmas and his wife’s birthday and brought the cash through the airport because “$580 000 is nothing for a businessman like [him].”
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PHALA PHALA: MORE TROUBLE FOR RAMAPHOSA?
The response to the Phala report has been overwhelmingly skeptical, including from the EFF, which claimed the SARB was being used to protect Ramaphosa from accountability.
The red berets said: “In their pathetic and poor attempt to cleanse Ramaphosa of the Phala Phala crimes, the SARB has unwittingly confirmed our suspicions that there was never a transaction or intention to have a legal transaction. Instead, the intention was to launder money through Phala Phala, as we have consistently maintained that Ramaphosa uses his farming business as a front for money laundering.”
The UDM also doubts the findings of the report and has hinted at possibly taking it under judicial review.
“No, it’s not exonerating the president because they are still failing to table the report…this is part and parcel of what the ANC did in Parliament, refusing us to read the report of Judge Ngcobo. The Reserve Bank went on to contradict the president who confirmed the transaction and also told the world that the dollars were stolen in his farm, yet the Reserve Bank says that money doesn’t belong to the president. This is a joke; we reject that statement,” UDM leader Bantu Holomisa is quoted as having told SABC News.