The Progress Professionals Forum (PPF) welcomes the admission of the Standard Chartered Bank (SCB) for agreeing to settle with the Competition Commission for R42.7 million associated with the rand/dollar manipulation scandal.

UK-based banking multinational Standard Chartered Bank (SCB) was one of the 28 banks that were prosecuted by the commission for manipulating the rand/dollar currency pair between 2003 and 2013.

PPF President Kashif Wicomb says: “We welcome this with bated breath and further call on other banks to do the right thing and redeem themselves from such disgraceful unethical conduct. The Forex Cartel, as it was called, did untold damage in various parts of our economy, the poor, middle class; impacting the price of goods and services in imports and exports, public and private debt, to mention a few. We hope that they have learnt their lesson”.

The PPF contends that a more stringent course of action should have been implemented, given the substantial financial resources of these banks and the significant harm they inflicted upon the country's economy.

In 2017, South Africa’s Competition Commission recommended that banks implicated in the manipulation of the rand be prosecuted following an investigation that began in April 2015

The 28 banks include JP Morgan, Bank of America Merril Lynch, HSBC Suisse, and Barclays.

According to the commission, SCB participated in the manipulation of USD/ZAR currency and its  conduct contravened section 4(1)(b) (i) & (ii) of the Competition Act, 89 of 1998.

In February 2017, the Competition Commission referred several banks to the Competition Tribunal for price fixing involving the rand. The commission ultimately brought 28 banks under investigation, in what it called the “Forex Cartel” case.

Wicomb asserts: "Not enough is done to expose deep-rooted white-collar crime and corruption in the private sector and unethical practices. We commend the Competition Commission and Competition Tribunal for standing firm and for being rigorous in executing its mandate and call further for other independent statutory bodies to do the same without fear of favour".

 

Issued by Ngokwethu Communication on behalf of Progressive Professionals Forum