SARB court papers reveal how fintech company Kastelo, linked to DA MP Mark Burke, allegedly used the foreign-exchange allowances of 891 clients to facilitate transactions worth about R4 billion. Kastelo disputes the allegations and says its business model was lawful.
South Africa has been rocked by allegations that billions of rands were moved offshore through a fintech company linked to Democratic Alliance (DA) MP Mark Burke.
Kastelo, which is linked to Burke, is under investigation by the South African Reserve Bank (SARB) over suspected breaches of the country’s exchange-control laws over the money's movement.
It is alleged that the company moved R4 billion offshore, using the foreign-exchange allowances of individual South Africans to acquire foreign currency and transfer it out of the country, without the individuals being aware of what was being done in their name.
The allegations caused a political headache for the DA, which initially stood by Burke but has since made a U-turn and removed him from Parliament’s finance-related committees while the matter is being investigated.
