Growing calls for firms that compromise SA's economy to face harsher penalties
This comes after the Competition Commission and British multi-national bank Standard Chartered reached an agreement after eight years of litigation.
JOHANNESBURG - There are growing calls for institutions that may have compromised the integrity of financial markets and the economic well-being of the country to face harsher penalties.
This comes after the Competition Commission and British multi-national bank, Standard Chartered, reached an agreement after eight years of litigation.
The United Kingdom-based bank has agreed to pay a hefty settlement of R42.7 million to the competition watchdog, making it the second commercial bank to admit wrongdoing for its role in the rand-dollar manipulation scandal that was exposed in 2017.
The Inkatha Freedom Party (IFP)'s Mkhuleko Hlengwa said the rigging of the South African currency may have had detrimental effects.
"These actions, as highlighted by the Competition Commission, not only compromised the integrity of financial markets but also the far-reaching consequences of the economic wellbeing of our nations."
Meanwhile, Standard Chartered's settlement with the commission comes at a time when the currency rigging case has returned to court.
The matter is being heard at the Competition Appeal Court, where the 28 banks are requesting that the commission show them evidence that their currency traders were part of the alleged conspiracy to manipulate the rand.
Efficient Group's chief economist Dawie Roodt: "To prove these kinds of cases are very difficult but I think in the case of Standard Chartered, what they decided is that 'this is taking up too much of our time, let's just pay them some money and they will go away'. Some of the other banks are holding out because they know it's very difficult to prove these kinds of cases."