The Competition Appeals Court has dismissed the Competition Commission’s rand/dollar manipulation case against some local and international banks accused of colluding to manipulate the currency.
The eight-year-long case was dismissed due to lack of evidence.
“On the Commission’s own version, it was required to show a common anti-competitive objective, which is an overall plan in which all the respondent banks participated to pursue common economic objective.
An occasional participation in a chatroom or unspecified conduct which is tenuously inferred as being part of the overall conspiracy is insufficient to meet these jurisdictional requirements,’’ the ruling stated.
The Commission says it is still studying the ruling and will at the right time communicate its next course of action.
The judgement sets aside the decision of the Competition Tribunal which ordered all accused banks to respond in earnest to all the charges against them by the Competition Commission for the manipulation of rand-dollar currency,’’ said the commission spokesperson, Siyabulela Makunga.
The Commission added that the manipulation affected the rand exchange rate, which had a negative impact on the economy, price of goods and services including imports and exports, among others.
Despite its eight year-long dragging, the case only came under spotlight in 2023, causing panic and concern in the country.
Meanwhile, the African Transformation Movement (ATM) has expressed dissatisfaction with the court’s ruling.
‘’This dismissal underscores the far-reaching consequences of the alleged collusion among major banks, adversely affecting the lives of ordinary South Africans.
Small businesses have closed their doors, leading to heightened unemployment levels, and many citizens have faced repossession of their assets, disproportionately impacting the poorest of the poor,’’ explained ATM spokesperson Zama Ntshona.
He said the case had severe economic implications and has called for mechanisms that are in place to protect the financial well-being of citizens to be examined.
Moreover, the party reiterated its call for a parliamentary debate and the formation of an independent Commission of Inquiry to probe the matter further.
