BEF lays charges against SA banks for currency fixing scandal

ABSA and Standard Bank were among the South African banks identified as being part of the market manipulation - which goes as far back as 2007. 

The corruption case was opened by the Black Empowerment Foundation at the Point Police Station in Durban today. 

The organisation's Ryan Bettridge says the banks must be held accountable.

ALSO READ: Banks guilty of collusion getting an easy reprieve: Economist

"If you look at the SA Reserve Bank report. Up until the end of January 2017, the banks return on equity investment is a mammoth 17%. These banks will only loan you R100 if you have a R120 in collateral. There's no risk. Therefore, the economy is not expanding, especially in the rural areas. There's no bank willing to put its neck out," he said.

Citibank has acknowledged its role in the manipulation - with the Competition Commission imposing a hefty fine on the institution.

The foundation says the impact of market manipulation by 17 banks on the SA economy is not clear but there is a high probability. 

ALSO READ: CitiBank to pay R69.5m penalty for collusion

Bettridge says while there is no single factor for SA's current weak economy however it is likely that such collusion by the banks has added to the state of the economy.

"At which point do the control levers from the banking and finance sector begin and end - we don't know. You need to look at the fact that the ratings agencies recategorised our economy ahead of schedule. We weren't due for a ratings assessment at this time. When we say there's a monopoly - there are a few people that change the rules, the pressures and they affect our economy. These are private companies. These are not government officials and if the rules don't go where they want them to go - then they apply pressure," he said.