Questions remain over Ramaphosa’s cash auction claims

Johannesburg - President Cyril Ramaphosa has confirmed a robbery at his Phala Phala Farm in Bela-Bela Limpopo, which he did not report to the police. He said the money was from the sale of game, but people with auction experience are questioning the authenticity of his statement.

Phala Phala Wildlife is described as a privately owned 4 500 hectare wildlife game farm situated some 43km west of Bela-Bela in the Limpopo Province. It is located within the Central Bushveld Bio-region.

It forms part of the Stud Game Breeders along with Dinaka, Lumari, Nyumbu, Shelanti and Tembani. Ramaphosa is the face of Phala Phala on the site.

A businessman who regularly attends auctions throughout the world said cash was prohibited. He said one gets to the venue and pays a registration fee, determined by what’s offered.

“That amount is refundable should you not have bought anything during the auction. Once you have found what you are looking for and have outbid everyone, you’re given 48 hours to settle the amounts. You go to your bank to make transfers or do it from your account, and then you give them the proof of payment.

“Even small amounts such as R50 000 are not made in cash. No legal auction place in the world takes that kind of cash. It’s a security concern for any organisation to accept cash payments during auctions,” said the businessman.

The president’s explanation for the dollar bills allegedly stolen at his farm, and their origins, further clashes with the laws governing auctions in the country. It states that all payments must be made in South African ZAR currency into the specific Trust Account nominated by the auctioneer for each auction and provided to the purchaser in the Notice to Bidders forming part of these rules of auction.

The law further states that the auctioneer does not accept cash at its auction sites under money laundering regulations and in the interest of security. Cash deposits must be made at the bank, and proof thereof must be presented on-site or at the auctioneer’s premises.

Other unanswered questions relate to who and where the money came from and how it entered the country.

According to the South African Revenue Service (Sars), a traveller is allowed to declare and carry a maximum of R25 000/unlimited foreign currency, whether leaving or entering. The South African bank notes are unlimited if the traveller is going to / coming from a country within the Common Monetary Area (CMA).

The Democratic Alliance (DA) has promised to write to Sars and the South African Reserve Bank (SARB) over Ramaphosa’s “mysterious” US dollars.

In a statement issued last night by DA leader John Steenhuisen, he says Ramaphosa’s response raises more questions than answers.

“What is most evident in this latest factional saga, is that ANC infighting, intra-party battles and factionalism continue to dangerously destabilise the South African State”.

The DA will not be pulled into the ANC’s factional battles, however, we still have a duty to the Republic to ensure that even the President is not above the rule of law, Steenhuisen said.

“There are many holes in this story that need to be filled. To this end, we will be taking several steps to get to the bottom of this issue which remains worryingly unclear.

“Firstly, we will be writing to the Commissioner of Sars Mr Edward Kieswetter alerting him to this sum of money, and calling on Sars to investigate whether this sum was declared and whether it carries tax implications as per the Income Tax Act and Tax Administration Act.

“Secondly, we will be writing to the SARB to ascertain whether this sum of foreign currency pertains to illicit flow of funds and potential money laundering on the part of the President as per the Currency and Exchanges Act of 1933. The nation deserves to know the truth behind this transaction and the DA will ensure that this matter does not become another ANC cover-up”.

Ramaphosa's spokesperson Vincent Magwenya failed to answer specific questions from the Sunday Independent which were sent by the publication on Friday. Instead, he opted to release a statement to all media houses, indicating that Ramaphosa remained firmly focused on the task of rebuilding the economy and the country despite the concern over the robbery.

“The President reaffirms that he was not involved in any criminal conduct and pledges his full co-operation with any police investigation. He confirms that following the incident in February 2020, security has been improved around his homes.

“Due to the possible investigation, the Presidency will not be in a position to engage further on the details of the matters and urges that due process be allowed to take its course.

The President affirms his commitment to fighting corruption and professionalising law enforcement agencies to better serve and respond to public needs,” Magwenya said.

Despite the lack of clarity provided by Ramaphosa and his spokesperson on the matter, the publication has established that five Namibian nationals allegedly pulled off the heist in collaboration with the domestic worker.

Security footage from February 9, 2020, which the publication has in its possession, shows how the robbers gained entry into the house and helped themselves to an undisclosed amount of money “concealed” under mattresses and couches. Ramaphosa allegedly failed to report the matter to any police station following the incident. Instead, he allegedly paid the suspects, including his domestic worker, R150 000 each, not to reveal the incident to anyone after they were traced and apprehended. Ramaphosa allegedly solicited the services of his head of the Presidential Protection Unit, Major-General Wally Rhoode, to investigate the matter without reporting it at any police station.

Rhoode, in return, got a local farmer, who is a neighbour at Ramaphosa’s Phala Phala Farm in Bela-Bela, to assist him with the investigation to trace the thieves.

Ramaphosa’s admission to the crime came after former State Security Agency and Correctional Services director-general Arthur Fraser opened a criminal case against him at Rosebank police station. The case was registered on Wednesday, with Fraser saying Ramaphosa and Rhoode must be investigated for money laundering, corruption, and kidnapping.

In his affidavit, submitted to the police and seen by the Sunday Independent, Fraser added, “it is no small matter to lay criminal charges against a sitting President, but I am guided by the dictates of the interest of justice and our Constitution”.

Fraser said in the affidavit that thieves broke into the president’s wildlife farm on February 9, 2020, and stole “undisclosed sums of United States dollars, concealed in the furniture in the main farmhouse”.

“The incident was not officially reported to the police to investigate. However, President Ramaphosa instructed Major-General Rhoode to investigate the incident immediately, apprehend the suspects, and retrieve the stolen US$,” Fraser wrote in his affidavit to the police.