State to act on price-fixing case
Banks have to answer to findings of commission
PRESIDENT Jacob Zuma said some banks had a case to answer after the Competition Commission revealed yesterday it had referred a case of price collusion and currency fixing for prosecution.
During his State of the Nation address (Sona) reply in parliament yesterday, Zuma said that while the matter was still under investigation, the impact of the pricefixing scandal had far-reaching effects and distorted South Africa’s economic standing.
South African banks Absa, Standard Bank and Investec were named among the 17 international banks, including HSBC, Barclays and J P Morgan Chase, which have been referred to the tribunal for prosecution following an investigation into the manipulation of the rand since April 2015.
The commission said in a statement that “from at least 2007, the respondents had a general agreement to collude on prices for bids, offers and bid-offer spreads for the spot trades in relation to currency trading involving US dollar and rand currency pair”.
Zuma said in his speech that the government would act against price-fixing and collusion but added that the government “looked forward to working with the financial sector” to ensure it was diversified and inclusive.
In his 70-minute speech, Zuma reiterated government’s plans to drive radical economic transformation, saying the ANC “won’t be apologetic” in its pursuit of “economic freedom for the black majority and Africans in particular”.
He said he was “shocked” by statements from the opposition during the Sona debates that it would not succeed because it had not succeeded elsewhere. He said it showed they were “determined to defend and protect the status quo and ensure ownership control remains skewed in favour of a racial minority”.
He said JSE-listed company ownership statistics “should worry any leader who wants to see a sustainable future”.
However, addressing statements made by the Freedom Front Plus’s Pieter Groenewald during debate, Zuma said the focus on land restitution and economic transformation did not indicate a hatred for white people.
“There is no white hatred. Some of us have been taught by our organisations not to be racist,” he said. “We are stating a fact – massive stretches of land are owned by a few.”
And while he said the willing buyer, willing seller principle had proven slow and expensive, all efforts at land redistribution would be done within the parameters of the constitution and the law.
Zuma also took aim at DA leader Mmusi Maimane’s speech about the “lost generation” of young, black Africans who were not in education or working, saying “our youth is not a lost generation – they know what they want for themselves”.
This, he said, was evidenced by the growing numbers of young people enrolling in tertiary institutions every year.
Zuma also addressed the scenes which played out as he made his State of the Nation address, saying the behaviour was “shocking” and “worse than a beer hall”. — TMG