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Nedbank denies allegations of rand manipulation by Competition Commission

The Constitutional Court in Johannesburg heard arguments by various banks, including Nedbank, that it was not part of a conspiracy to manipulate the rand/US dollar. Image: Timothy Bernard / Independent Newspapers Due to the cryptic nature of the allegations against Nedbank by the Competition Commission that this bank was part of a conspiracy to manipulate the rand, Nedbank has no case to answer as there is not a shred of evidence regarding any wrongdoing against it. This is according to Advocate Anthony Gotz SC, who on Wednesday told the Constitutional Court that Nedbank should never have been added as a respondent in the Competition Commission's referral of the matter to the tribunal. This argument follows the Competition Commission's appeal following last year's judgment in which the Competition Appeal Court (CAC) cleared 13 banks - including Nedbank - from facing the music in a later trial regarding the rand/US dollar manipulation saga. Advocate Tembeka Ngcukaitobi, acting on behalf of the Competition Commission, on Monday told the Constitutional Court that there is enough evidence to establish a prima facie case that they were involved in the manipulation of the rand. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The Competition Commission, in its initial referral of the complaint to the Competition Tribunal, did not list Nedbank as one of the suspects. It, however, amended its referral in 2020 during which Nedbank was included as one of the alleged conspirators of the rigging of the rand. Gotz said in its application to join Nedbank, the commission pleaded a broad conspiracy against the bank, but the allegations were narrow. The allegations were based solely on the commission's assessment regarding trading data on the Reuters platform. This platform does not reflect trades - it's a public platform which simply indicates the prices at which traders are willing to buy and sell currency, Gotz said. According to him, the case against Nedbank is based on the commission's assessment of trading data over six years. 'This is not a case of Nedbank being a participant in any chatroom - in this respect Nedbank is different from the other respondents,' Gotz said. He argued that the allegations against Nedbank are skeletal and there are only a few instances which lasted minutes each on the Reuters platform, on which the commission is now relying. Gotz said these allegations are not made specifically against Nedbank, but against other banks that they had withheld quotes. This, he argued, is definitely not enough to establish that Nedbank was part of any conspiracy to rig the rand. He questioned how it could be suggested that this bank was part of an international cartel. Gotz also pointed out that the few instances the commission is relying on happened six months to a year apart. 'The commission cannot make allegations in the air. We accept that in cartel cases, it is difficult to identify each perpetrator, but this is not a licence for the commission to do what it has done,' he argued.