DA under fire as Reserve Bank affidavit and Constitutional Court judgment expose governance questions

Senior Democratic Alliance figures and party practices have come under renewed scrutiny after a South African Reserve Bank (SARB) affidavit alleged large-scale exchange-control circumvention by Kastelo, a fintech company founded and previously chaired by DA politician Dr Mark Burke, and after a Constitutional Court judgment found unlawful the Western Cape provincial disposal of the Tafelberg property in Sea Point.

Allegations against Kastelo and Mark Burke

The SARB affidavit, as reported, alleges that Kastelo systematically circumvented exchange-control regulations to externalise approximately R4 billion. The affidavit claims clients’ Single Discretionary Allowances and Foreign Investment Allowances were used without their full knowledge, and that offshore accounts were opened in clients’ names without some clients knowing the accounts existed. The affidavit also alleges that the company’s activities were misrepresented in compliance declarations submitted to the Reserve Bank.

The Johannesburg High Court dismissed Kastelo’s attempt to set aside the SARB’s blocking order, finding that the Reserve Bank had established a valid and objectively reasonable suspicion. Dr Mark Burke resigned from day-to-day operations at Kastelo in 2024 to pursue politics and ceased serving as chairperson of the broader group in February 2026, saying he was not involved in daily operations. He has maintained that the court made no finding of proven wrongdoing against him or the company.

Following the SARB action, the DA removed Burke from the Standing Committee on Finance and from the party’s finance cluster, describing the step as taken “out of an abundance of caution” to avoid perceptions of conflict of interest. Kingsley Wakelin was named as the new finance spokesperson.

Broader allegations of access and influence

The reporting connects the Kastelo episode to other controversies involving the DA’s past and present figures. It notes allegations around Resolve Communications, chaired by former DA leader Tony Leon, that the firm used proximity to DA leadership to arrange meetings between DA ministers and private clients; Leon has denied wrongdoing.

The article also highlights the role of Ryan Coetzee, a long-time DA strategist and adviser, who while CEO of the Dubai-based firm Consulum was involved in the DA’s Government of National Unity (GNU) negotiations. The DA later signed a confidential agreement paying more than R7.7 million to Consulum to undertake a wide range of functions inside the GNU, including caucus coordination, ministerial strategy and staff training.

Constitutional Court judgment on land disposal

On 2 July 2026 the Constitutional Court delivered a unanimous judgment in Adonisi and Others v Minister for Transport and Public Works, Western Cape and Others; Minister of Human Settlements and Another v Minister for Transport and Public Works, Western Cape and Others (CCT 126/24; CCT 128/24) [2026] ZACC 29, written by Justice Nonkosi Mhlantla. The Court declared the Western Cape Provincial Government’s disposal of the Tafelberg property at 355 Main Road, Sea Point unlawful.

The Court held that obligations under sections 25(5), 26(1) and 26(2) of the Constitution require that the location of housing be treated as an integral factor in measures to progressively realise the right to adequate housing and equitable access to land. It found that disposing of well-located public land for private development perpetuated spatial injustice, that the Province failed to conduct meaningful public participation, and that relevant regulations under the Western Cape Land Administration Act were unconstitutional and invalid. The Court set aside the Supreme Court of Appeal’s earlier ruling in favour of the Province and City.

The Constitutional Court ordered the Province to submit a detailed report under oath to the Western Cape High Court within three months setting out current policies and programmes for affordable housing in the CBD and surrounds and to report on the number of affordable houses delivered in the inner city and surrounds since the litigation began in 2017.

Local service delivery and oversight in Langa

Reporting also describes an oversight visit by the Economic Freedom Fighters (EFF) to Langa in Cape Town that documented severe service-delivery problems. The account says sewage flowed openly through streets, that children played in sewage, and that residents faced hazardous and unsanitary conditions. The reporting links these conditions to broader claims about spatial inequality within the City of Cape Town under DA leadership.

Political implications and the coming elections

The reporting frames these legal and governance developments as intensifying scrutiny of the DA’s claims to clean governance and fiscal discipline. It notes calls from opposition figures and commentators for accountability and highlights the upcoming local government elections on 4 November 2026 as a political moment in which voters may respond to these controversies.

What is established in the public record

• SARB affidavit alleges exchange-control circumvention by Kastelo and references about R4 billion externalised.
• High Court dismissed Kastelo’s application to set aside SARB’s blocking order, finding SARB had an objectively reasonable suspicion.
• Mark Burke resigned operational roles at Kastelo in 2024 and ceased as chairperson of the broader group in February 2026; the DA removed him from finance committee roles.
• Consitutional Court judgment (2 July 2026) found the Tafelberg disposal unlawful and ordered remedial reporting from the Province.
• EFF oversight reported hazardous sewage and poor service delivery in Langa.

The developments combine legal findings, regulatory allegations and political actions that have prompted renewed debate about governance, party accountability and oversight of public resources.