Johnathan Paoli
THE African Transformation Movement (ATM) has expressed its discontent with the Rand Manipulation scandal, with party president Vuyo Zungula saying the party is also deeply concerned by banks who are intentionally overcharging Black clients and calling out unethical practices within the financial sector.
The statement comes after a report that a former WesBank employee has blown the whistle on his former employer alleging that the bank used a specific system to determine interest rates resulting in Black clients paying more compared to whites.
The employee said the financial institution used discriminatory policies to determine interest rates charged to its clients.
The ATM said it found the allegations deeply concerning and reflecting a pattern of systematic discrimination within the financial sector.
Zungula said that Black clients had reportedly been charged up to 18% compared to the 10% charged to white clients.
The party said that it called upon the bank to address the accusations transparently, acknowledge the severity of the claims and take immediate steps to rectify the discriminatory practices.
Zungula said that the party reiterated the need for comprehensive investigations into discriminatory practices within the financial sector and called for a transparent and accountable legal system, in order to ensure that justice prevailed.
“Racial discrimination within financial institutions contributes to economic disparities and undermines the principles of justice and fairness. The ATM remains committed to championing the rights of all citizens and holding institutions accountable for any wrongdoing,” Zungula said.
The ATM also demanded a fresh probe into the Rand manipulation scandal.
THe Competition Commission found that implicated banks in the Rand manipulation have generated about a trillion rand a day between 2007 and 2013.
The commission accused the banks of colluding on forex deals and manipulating the foreign exchange market by “fixing” the price of the rand for several seconds and even minutes several times between 2007 and until at least September 2013.
The case has been ongoing since April 2015, and the commission has added more banks to the case, including HSBC Bank USA, Merrill Lynch Pierce Fenner and Smith, Bank of America, Credit Suisse Securities (US), Nedbank, FirstRand, as well as Standard Americas.
However, South Africa’s Competition Appeal Court has dismissed charges against 28 banks accused of colluding to manipulate the Rand almost a decade ago.
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