Competition Commission taken aback as Standard Bank pushes for records

THE COMPETITION Commission yesterday stopped short of calling Standard Bank arrogant for requesting the Competition Tribunal to compel it to release its investigation records in the foreign currency exchange (forex) collusion matter, while declining to hand over its records to the bank.

The charged hearing at the tribunal’s offices was triggered by Standard Bank’s founding affidavit, deposed with the tribunal, that accused the commission of conducting the investigation in a clandestine manner and causing harm to its reputation.

Tembeka Ngcukaitobi, representing the commission, said yesterday it was uncalled for for the bank to demand that the commission make available the body of evidence it has against it.

However, counsel for Standard Bank, Greta Engelbrecht, hit back at the commission and said the anti-graft agency had “constructed reasons” to frustrate the process of handing over the records of its multibillion-dollar foreign exchange trade probe.

The stalemate between the commission and the bank means the tribunal chairperson and his team will now have to decide on the matter.

Earlier this year, the commission referred Standard Bank and 17 other local and international banks to the tribunal for prosecution after it accused them of colluding in forex trading. Barclays Africa and Citibank have since admitted their guilt and agreed to testify against the other banks, with Citibank having been fined R69 million, while no fine was preferred against Barclays Africa.

Ahmore Burger-Smidt, a director at Werksmans Advisory Services, said yesterday that one had to consider the concept of restricted information in assessing the current application before the Competition Tribunal.

“One would, therefore, expect, in the interest of proper administration of justice, that respondents be granted access to information forming the basis of the prosecution.”

The commission last month said that it was “no longer interested” in any settlement discussions with banks implicated in the forex scandal, which broke earlier this year.

The commission is seeking an order declaring the 17 banks are liable for the payment of an administrative penalty equal to 10 percent of their annual turnover.