<\/p>\n
The EFF has accused the DA of hypocrisy and financial misconduct after explosive allegations surfaced that a fintech company chaired by senior DA MP Mark Burke systematically bypassed South Africa\u2019s exchange control regulations to externalise R4 billion.<\/p>\n
Read:<\/p>\n
Common exchange control misconceptions
\nSars crackdown targets expats moving money offshore<\/p>\n
This comes after the Johannesburg High Court dismissed an appeal by Kastelo, a fintech and cryptocurrency arbitrage trading provider, seeking to unfreeze its bank accounts while the Reserve Bank investigates it.<\/p>\n
Judgment<\/p>\n
Acting Judge S Johnson handed down a decision dismissing Kastelo\u2019s application and ordered costs on the punitive attorney\u2011and\u2011client scale.<\/p>\n
The South African Reserve Bank\u2019s (Sarb) explosive affidavit against Kastelo, founded and chaired by Burke, who also serves as the DA\u2019s federal finance chair, paints a picture not of minor regulatory lapses but of outright financial crime.<\/p>\n
In a court affidavit, a Reserve Bank investigator said there is reason to believe Kastelo has been using clients\u2019 allowances to move funds offshore for its own benefit.<\/p>\n
Sarb investigation<\/p>\n
Burke served as Kastelo\u2019s CEO until June 2024, handing the reins to Nicholas Burke after being called to parliament following the 2024 national elections, while remaining on as chair.<\/p>\n
According to the affidavit, Kastelo allegedly used clients\u2019 single discretionary allowances and foreign investment allowances without their full knowledge, opened offshore bank accounts in their names, and misrepresented its activities in compliance declarations to the central bank.<\/p>\n
Read:
New exchange control rules: \u2018If they pass, we\u2019re leaving SA\u2019
Let\u2019s be brave and lift exchange controls \u2013 Farzam Ehsani<\/p>\n
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The allegations include the use of third parties\u2019 foreign investment and discretionary allowances to externalise funds, transactions allegedly conducted without clients\u2019 knowledge or participation, and alleged misrepresentation of Kastelo\u2019s activities in compliance declarations submitted to the Reserve Bank.<\/p>\n
The Reserve Bank has already frozen a portion of Kastelo\u2019s funds held at Access Bank, and a broader investigation is underway.<\/p>\n
DA member<\/p>\n
Burke\u2019s political position makes the allegations particularly damaging. He sits on the DA\u2019s federal executive as finance chair, responsible for internal financial controls and accountability, and serves in parliament on committees overseeing national appropriations and finance.<\/p>\n
The EFF said the allegations are scathing.<\/p>\n
\u201cThis is not a paperwork error. It is the unauthorised use of other people\u2019s money and identities, the concealment of offshore accounts, and deception of the central bank. That is financial crime, plain and simple.\u201d<\/p>\n
\u201cThe DA markets itself as the party of clean governance and financial discipline. Yet its own finance chairperson is implicated in a scheme that undermines the very principles they claim to uphold.\u201d<\/p>\n
ANC<\/p>\n
Meanwhile, the ANC has called for the immediate removal of Burke from parliament\u2019s finance\u2011related committees following the allegations.<\/p>\n
ANC parliamentary caucus spokesperson Hlengiwe Hadebe said Burke\u2019s continued role on finance committees was \u201csimply untenable\u201d given the Reserve Bank\u2019s affidavit.<\/p>\n
Read: Dawie Roodt: Do we still need exchange controls?<\/p>\n
\u201cParliament cannot demand accountability from the Reserve Bank while tolerating a glaring conflict of interest in its own oversight structures,\u201d she stressed.<\/p>\n
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\u201cMembers of Parliament must be held to a higher standard. Mr Burke\u2019s association with Kastelo falls far short of what South Africans expect from their leaders.\u201d<\/p>\n
Burke responds<\/p>\n
In a statement on Tuesday, Burke said he isn\u2019t personally being investigated.<\/p>\n
\u201cThe High Court judgment does not make any finding of wrongdoing against Kastelo, nor myself.<\/p>\n
\u201cNor does the judgment constitute a finding that exchange control contraventions have been proven. The matter before the court concerned whether the Reserve Bank had grounds to issue a blocking order while its investigation continues. The court found that it did,\u201d he said.<\/p>\n
Burke added he is confident that the Reserve Bank\u2019s inquiry will find no wrongdoing on his part.<\/p>\n
\u201cSince entering parliament I have consistently informed my party and the finance committee secretary that I cannot be involved in any matters relating to the SARB to avoid any conflicts of interest. The record of recusal is very clear. I did this to maintain strong ethical boundaries and will continue to do so,\u201d he said.<\/p>\n
\u201cI have furthermore ensured that all necessary declarations to parliament and the members interest register was done timeously and accurately.<\/p>\n
\u201cNo allegation of misconduct or malfeasance has been made against me personally, and I am personally not subject to any investigation by any entity or agency.\u201d<\/p>\n
This article was first published\u00a0here.<\/p>\n
#ANC #EFF #target #DAs #Mark #Burke #R4bn #allegations<\/p>\n","protected":false},"excerpt":{"rendered":"
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