By Thapelo Molefe
The African National Congress (ANC) Parliamentary Caucus has called for Democratic Alliance (DA) Federal Finance Chair Mark Burke to be removed from Parliament’s finance oversight committees, saying his continued participation is untenable while the South African Reserve Bank investigates allegations involving about R4 billion linked to a fintech company he founded.
The call follows allegations contained in a Reserve Bank affidavit concerning the business activities of Kastelo, a fintech company founded by Burke.
According to the ANC, Reserve Bank investigators identified a reasonable suspicion of exchange-control contraventions involving approximately R4 billion.
The allegations include the use of third parties’ foreign investment and discretionary allowances to allegedly move funds out of the country, transactions allegedly conducted without clients’ knowledge or participation, and alleged misrepresentation of Kastelo’s activities in compliance declarations submitted to the Reserve Bank.
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The ANC said the allegations went beyond a routine compliance dispute, arguing that they concerned the rules governing the movement of money across South Africa’s borders and the country’s exchange-control framework.
“This is not a minor compliance dispute,” the caucus said.
“The allegations raise fundamental questions about the integrity of South Africa’s financial system, the movement of capital across our borders and the possible circumvention of exchange-control regulations.”
Burke serves on Parliament’s finance-related oversight structures, including the Standing Committee on Appropriations, and is an alternate member of the Standing Committee on Finance.
The ANC said this created a serious credibility problem while the Reserve Bank was investigating allegations concerning a company founded by him.
“Parliament’s Finance Committee cannot credibly exercise oversight over the South African Reserve Bank while one of its members is facing serious allegations of misconduct that the Reserve Bank itself is investigating,” the caucus said.
It said Parliament’s finance committees were responsible for overseeing the regulatory framework at the centre of the allegations.
“Conduct of this nature would represent a serious assault on the very regulatory framework that Parliament’s finance committees are constitutionally required to oversee,” it said.
The ANC also questioned whether Burke’s continued participation could undermine public confidence in Parliament’s ability to hold financial institutions accountable.
“How can an MP facing such serious allegations continue sitting on the very parliamentary structures responsible for scrutinising financial regulation and holding the Reserve Bank to account?” the ANC asked.
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“It is simply untenable.”
The caucus accused the DA of failing to apply the same accountability standards it demands from others.
“There can be no credibility in Parliament demanding accountability from the Reserve Bank while simultaneously tolerating a glaring conflict of interest within its own oversight structures,” it said.
“The DA cannot preach accountability to South Africans while practising a completely different standard when one of its senior leaders is implicated in allegations of this magnitude.”
The ANC acknowledged that Burke had the right to defend himself and that Kastelo could challenge the allegations.
It nevertheless said the Reserve Bank should be allowed to complete its investigation without interference, while Parliament should safeguard the credibility of its own oversight processes.
The caucus is calling on the DA to remove Burke from the Standing Committee on Appropriations and his alternate membership of the Standing Committee on Finance pending the conclusion of the relevant investigations.
It is also calling on parliamentary authorities to examine whether Burke’s continued involvement in finance-related oversight is compatible with Parliament’s ethical obligations and public-interest responsibilities.
The ANC said the issue ultimately went beyond Burke and the DA, arguing that the credibility of Parliament’s oversight of South Africa’s financial architecture was at stake.
“The Reserve Bank must be protected. Parliament’s oversight authority must be protected. Most importantly, the integrity of South Africa’s financial system must be protected,” it said.
