By Thapelo Molefe
Democratic Alliance (DA) Federal Finance Chair Mark Burke has stepped down from Parliament’s finance structures while the South African Reserve Bank (SARB) investigates allegations involving about R4 billion linked to Kastelo, a fintech company he founded.
DA Parliamentary Leader George Michalakis said Burke would no longer serve on the Standing Committee on Finance or in the finance cluster to avoid any perception of a conflict of interest.
“After consultation with Dr Mark Burke, we have decided that out of an abundance of caution, and to avoid any perceptions of a conflict of interest, he will no longer serve on the finance committee or in the finance cluster while a company he is a beneficiary of is the subject of an inquiry by the SARB,” Michalakis said.
The decision follows a call by the African National Congress (ANC) Parliamentary Caucus for Burke to be removed from the Standing Committee on Appropriations and as an alternate member of the Standing Committee on Finance.
The ANC said a SARB affidavit contained allegations of a reasonable suspicion of exchange-control contraventions involving approximately R4 billion.
The allegations include the alleged use of third parties’ foreign investment and discretionary allowances to move money out of the country, transactions allegedly conducted without clients’ knowledge and the alleged misrepresentation of Kastelo’s activities in compliance declarations submitted to the SARB.
The ANC said Burke’s continued involvement in financial oversight raised concerns about Parliament’s credibility while the Reserve Bank investigated allegations involving a company he founded.
“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.
The ANC said Burke had the right to defend himself and that Kastelo could challenge the allegations, but added that the Reserve Bank should be allowed to complete its investigation without interference.
The DA has appointed Kingsley Wakelin as its Finance Spokesperson.
The ANC said the matter went beyond Burke and the DA, arguing that Parliament’s oversight of the country’s financial system had to remain credible.
“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.
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