‘Banks have case to answer on rand fixing’

Price manipulation has a permanent effect, counsel for Competition Commission tells Concourt

- ZELDA VENTER

LOCAL and international banks, which were last year cleared by the Competition Appeal Court (CAC) of answering to allegations that they colluded in conspiring to manipulate the rand against the US dollar, have a case to answer to when the matter eventually goes to trial.

This is according to Advocate Tembeka Ngcukaitobi, acting on behalf of the Competition Commission. He said there is enough evidence to establish a prima facie case that they were involved in the manipulation of the rand.

The commission is appealing the majority of the findings of the CAC, especially the fact that the CAC found that the commission did not have jurisdiction over the majority of the international banks.

The Constitutional Court yesterday heard arguments from the commission and the hearing is expected to last until Friday.

An important issue which served before the court is the extent of the commission’s jurisdiction over the foreign banks alleged to have participated in a single overarching conspiracy (SOC).

It is alleged that these banks, together with local banks which include Standard Bank, Nedbank and First Rand Bank, have conspired to manipulate the exchange rate in respect of the US dollar and the rand.