DA finance chief Mark Burke axed from Parliament committees amid R4bn Kastelo probe
Fintech company Kastelo chaired by Burke systematically bypassed South Africa's exchange control regulations to externalise R4 billion.
The Democratic Alliance (DA) has removed its chairperson of finance and Member of Parliament (MP), Mark Burke, from Parliament's finance committees following an investigation by the South African Reserve Bank (SARB) into his company, Kastelo. Burke was removed from the finance committees by the party's parliamentary leader, George Michalakis, to avoid any perceptions of a conflict of interest while an inquiry is ongoing.
According to the SARB, Kastelo, chaired by Burke, allegedly bypassed South Africa's exchange control regulations to externalize R4 billion. The allegations include using clients' allowances without their full knowledge, opening offshore bank accounts in clients' names, and misrepresenting Kastelo's activities in compliance declarations to the central bank.
The SARB's affidavit against Kastelo paints a picture of financial crime rather than minor regulatory lapses. It alleges that Kastelo used clients' single discretionary allowances and foreign investment allowances without their knowledge, opened offshore bank accounts in their names, and misrepresented its activities in compliance declarations to the Reserve Bank. A portion of Kastelo's funds held at Access Bank has already been frozen by the Reserve Bank, and a broader investigation is underway.
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