AGREEMENT BETWEEN THE EXCHANGE CONTROL DEPARTMENT OF THE SOUTH AFRICAN RESERVE BANK AND DEUTSCHE BANK AG (JOHANNESBURG BRANCH)

 
COMMISSION OF INQUIRY INTO THE RAPID DEPRECIATION OF THE EXCHANGE RATE OF THE RAND AND RELATED MATTERS
Chairperson: Adv J Myburgh, SC, Commissioners:  Mr M Gantsho & Ms C Qunta, Secretary: Mr C van Niekerk

2nd Floor, Rex Welsh House, Cnr Gwen & Maude Street, Sandown Village, 2196, TEL:083 306 9985, Fax: 011 – 263 9005
e-mail: chrisv@counsel.co.za

EMBARGO - FOR IMMEDIATE RELEASE

PRESS STATEMENT: AGREEMENT BETWEEN THE EXCHANGE CONTROL DEPARTMENT OF THE SOUTH AFRICAN RESERVE BANK AND DEUTSCHE BANK AG (JOHANNESBURG BRANCH)

The Commission received a request from Deutsche Bank AG (Johannesburg Branch)(“DBJ”) to release the terms of the Settlement Agreement dated 22 May 2002 and Annexure 1 thereto, which was submitted to the Commission at an in camera hearing on 24 May 2002,  per its letter dated 27 May 2002. The Exchange Control Department of the South African Reserve Bank (“Exchange Control”) consented to the release of the terms of the Settlement Agreement by means of its letter dated 28 May 2002. The Settlement Agreement and Annexure 1 thereto are attached (see “Settlement Agreement”).  Annexure 2 to the Settlement Agreement was released as a statement at the public hearing of the Commission on 24 May 2002.    

At the hearing of the Commission on 24 May 2002 Exchange Control and DBJ informed the Commission that the terms of the Settlement Agreement were confidential in terms of section 33(2) of the South African Reserve Bank Act No. 90 of 1989.  Exchange Control and DBJ requested an in camera hearing in order to disclose the terms of the Settlement Agreement to the Commissioners.  Exchange Control and DBJ have now waived confidentiality.

The Commission is of the view that publication of the terms of the Settlement Agreement is in the public interest.  The public is entitled to know how the parties have resolved their differences which were canvassed at length in the public hearings of the Commission. 

It should be kept in mind that the South African Reserve Bank review of the Deutsche Bank asset swaps/share placement related transactions is independent of the Commission’s work.  The Commission will therefore make its own findings and draw conclusions based on the public hearings that it has conducted. 

ISSUED BY THE CHIEF DIRECTORATE: PUBLIC EDUCATION AND COMMUNICATION OF THE DEPARTMENT OF JUSTICE AND CONSTITUTIONAL DEVELOPMENT ON BEHALF OF THE COMMISSION OF INQUIRY INTO THE RAPID DEPRECIATION OF THE EXCHANGE RATE OF THE RAND AND RELATED MATTERS

28 MAY 2002

PRETORIA 

Enquiries:    Chris van Niekerk, Commission Secretary, Tel: 083 3069985