Tokyo Sexwale and Matthews Phosa revive Phala Phala scandal controversy

Two veterans of the ANC, Tokyo Sexwale and Matthews Phosa, have rekindled the controversy surrounding the Phala Phala scandal, which has dogged President Cyril Ramaphosa since 2022.

This is despite Ramaphosa having been cleared by the ANC's Integrity Commission while the National Prosecuting Authority declined to pursue criminal charges on his involvement in the matter.

The Phala Phala scandal revolves around the 2020 theft of a large sum of foreign currency hidden in couches ($580 000 or R8.7 million at the time) at Ramaphosa's farm in Limpopo. 

Ramaphosa has denied any wrongdoing, but the scandal has raised questions about his integrity and accountability.

In a recent podcast, Sexwale, a former Gauteng premier and ANC elder, demanded Ramaphosa clean up the events surrounding the scandal.

"I don't know what happened there. Money was found on couches, etc. The president was not there except for the people working on the farm," Sexwale said. "I think more explanations should have come.

"People are not satisfied with the answers that have come. We are thinking exactly what happened there. Whose money was it?"

Phosa, a former ANC treasurer-general and Mpumalanga Premier echoed Sexwale's comments, saying he believes the Phala Phala scandal will continue to haunt Ramaphosa. 

"From where I sit, I never thought Phala Phala would go away because Parliament voted the way it did. Even after the court decision, if the court decision goes in favor of the President, Phala Phala will still not die," Phosa said.

Sexwale was scathing in his criticism of the government's handling of the scandal.

"It's a cock and bull story. It's a childish story. Somebody just came to buy cattle. He finds a deputy manager he doesn't know and he leaves money. I'm not even aware what Sars did and what the police did," he said. 

Phosa further expressed his disappointment with the government's response to the scandal.

"That led Ramaphosa to embrace the Zondo Commission, and, of course, the Zondo Commission pointed to the challenges in law-enforcement agencies. It is sad some of the people Zondo pointed a finger at are still in Cabinet and now they have to be pulled down by the media and are discredited in Parliament," he said.

He believes the scandal highlights the need for stronger law-enforcement agencies.

"For me, the NPA is toothless. There is no coordinated plan to tackle corruption," he said. 

Efforts to reach Ramaphosa's spokesperson Vincent Magwenya through phone and texts were unsuccessful while ANC Secretary-General Fikile Mbalula could not be drawn to comment, saying that the ship had sailed.

"The issue of Phala Phala has long been over. There was a motion that was defeated in Parliament. That matter is over!" Mbalula said.

The Phala Phala scandal has sparked a heated debate about corruption and accountability in South Africa.

The Economic Freedom Fighters (EFF) and the African Transformation Movement (ATM) have challenged the National Assembly's decision not to establish a committee to investigate the scandal.

In June 2022, former State Security Agency boss Arthur Fraser asked the police to investigate Ramaphosa, presidential protection unit head Major-General Wally Rhoode and members of crime intelligence for money laundering, corruption and acting in contravention of the Prevention of Organised Crime Act.

Fraser accused Ramaphosa of hiding the fact that millions in foreign currency was stolen at the farm.

He further accused the president of trying to conceal the crime and of defeating the ends of justice, kidnapping of suspects, interrogation on his property and bribery.

Ramaphosa denied any involvement in any criminal conduct, saying the stolen money was the proceeds from selling game at his farm.

The Section 89 panel chaired by retired Chief Justice Sandile Ngcobo, found the president may have committed serious violations of the Constitution by “acting in a manner inconsistent with his office”, exposing himself to a situation involving a conflict between his official responsibilities and his private business, as well as violation of sections of the Prevention and Combating of Corrupt Activities Act over the foreign currency that was held at his property in 2020.

However this was overturned by the majority of MPs in parliament.

Cape Argus