ConCourt showdown between banks and Competition Commission over rand rigging 'a high-stakes game'

The Money Show's Stephen Grootes interviews Kabelo Khumalo, Companies and Markets Editor at Business Day.

The South African banks named in allegations of rand manipulation are hitting out at the Competition Commission for being on the list of implicated institutions - they initially included Nedbank, Standard Bank and FirstRand.

The case is headed for the Constitutional Court, despite the Competition Appeal Court (CAC) deciding in January 2024 to dismiss the case against the local banks and all but a handful of the total of 28 banks accused by the Competition Commission of rigging the rand.

Legal representatives for the banks argued that the 158 chats over seven years presented as evidence, were flimsy as proof of a single overarching conspiracy. 

RELATED: MPs question SA Reserve Bank over 'manipulation' of the rand by major banks

As Business Day's Kabelo Khumalo reports, FirstRand and Standard Bank will next week tell the Constitutional Court of the high financial and reputational costs they have incurred over the CompCom's allegations they formed part of a banking cartel to manipulate the local currency.

He tells Stephen Grootes that some of the language being used by the banks is 'very colourful'.

"The likes of Standard Bank are describing this multi-year investigation by the Competition Commission as amounting to torture. They say they feel that their reputation as a bank and institution is being tarnished."

Kabelo Khumalo, Companies and Markets Editor - Business Day

Khumalo describes what's coming as likely a case of 'winner takes it all', where either the Commission or the banks will be left in a very bad light.

"It's a high-stakes game really because the manipulation of the currency is a serious indictment ,should particularly the local banks be found to have had a part in it."

Kabelo Khumalo, Companies and Markets Editor - Business Day

"The Competition Commission on its side is adamant that the banks have been using tactics to delay what they believe is a strong case, but on the other hand the international banks claim that the South African authorities don't have jurisdiction over them."

Kabelo Khumalo, Companies and Markets Editor - Business Day

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