Issued by the Office of the President
15 January 2002
President Thabo Mbeki today (Tuesday, 15 January) approved the terms of reference that will be used by the Commission of Inquiry into the depreciation of the Exchange Rate of the Rand and Related Matters.
The President calls on all South Africans to provide the Commission with the fullest co operation as it discharges its responsibilities.
The Commission's terms of reference are as follows:
To inquire into and report on:
1.1 Whether between 01 January and 31 December 2001, any person or any other juristic entity, directly or indirectly, entered into, concluded or caused any transactions which contributed or gave rise to the rapid depreciation of the value of the Rand during the relevant period relative to other currencies and whether any such transactions were:
1.1.1 illegal, or
1.1.2 unethical, albeit legal.
1.2 Whether any of the transactions in question:
1.2.1 involved any collusion on the part of any person or juristic entity
1.2.2 resulted in any improper gain or avoided loss
1.3 Without in any manner limiting the scope and ambit of this inquiry, whether, in respect of any of the transactions in question, any:
1.3.1 authorised dealer in foreign exchange deviated from the terms and conditions of its appointment;
1.3.2 existing regulations and/or restrictions on the export of capital from South Africa were contravened;
1.3.3 regulations and/or restrictions on the maximum period within which exports proceeds must be repatriated to South Africa were contravened;
1.3.4 transactions were entered into that were in contravention of the letter or spirit of the exchange control regulations.
1.4 To advise the President on any relevant recommendations, including:
1.4.1 the effectiveness of the current administrative system of ensuring adherence to exchange controls and other regulatory measures in guarding against the occurrence of such transactions; and
1.4.2 possible action that could be taken against any person or juristic entity identified as having participated in any such transactions.
To advise the President of such other period before 01 January 2001 or after 31 December 2001 which the Commission considers necessary to be covered by this inquiry in order fully to report on the subject of this inquiry.
To submit interim reports to the President from time to time, the first to be on or before 30 April 2002.
Enquiries: Bheki Khumalo on 083 256 9133 or 012 300 5436