By Rachel Mohamed
The third day of legal proceedings at the Constitutional Court, where the Competition Commission has brought some of the country’s top banks and their international counterparts, around 17 foreign banks, to trial on charges of bank collusion to manipulate the US dollar-rand exchange rate.
This appeal seeks to overturn a January Competition Appeal Court (CAC) decision that sided with the majority of the banks accused of price fixing and allowed them to avoid prosecution.
According to Makgale Mohlala, Divisional Manager for Cartels at the Competition Commission, the case dates back to 2017.
Furthermore, Mohlala stated that the commission disagrees with the Competition Court’s ruling that it lacks jurisdiction to appeal the case. As a result, they filed an appeal with the Constitutional Court.
“Our view is that the law is clear: section 3 (1) of the Competition Act states that the commission and tribunal have jurisdiction over any economic activities that have an effect in the Republic of South Africa.”
“So, if banks are manipulating the rand from anywhere in the world, whether in New York or London, and that manipulation is affecting the South African economy, we believe that section 3 (1) empowers us to investigate and prosecute those banks.”
Listen to the full interview:
VOC News
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