Banks guilty of collusion getting an easy reprieve: economist

Banks guilty of collusion getting an easy reprieve: economist

Some economists say the decision by the Competition Commission to reach an agreement with two of the seventeen banks implicated in the currency price fixing scandal is questionable.

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The Competition Commission has granted Absa conditional immunity from prosecution in return for its continuing cooperation in the probe.

Earlier this week, the commission also reached a settlement with Citibank, which will pay an administrative penalty of R69.5 million.

ALSO READ: Standard Bank in discussions with Competition Commission

Chief Economist at the Efficient Group, Dawie Roodt says all parties found guilty of collusion should be prosecuted.

"Exactly what I thought would be happening is happening. There's some sort of settlement; banks won't be charged, no one will be found guilty, there won't be real fines - there will be some form of settlement, and the problem will go away," says Roodt

Roodt says that the outcome is unfortunate.

"If someone has done something wrong, they must be charged in a court of law. And a judge must decide if they're guilty or not," says Roodt.

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