SARB probe, court ruling put DA finance chair Mark Burke under pressure over Kastelo allegations

Senior DA MP Dr Mark Burke is facing mounting political pressure after allegations in a South African Reserve Bank affidavit that the fintech firm he chairs, Kastelo, externalised R4 billion in breach of exchange control rules and after a court refused Kastelo’s bid to unfreeze its bank accounts.

What the Reserve Bank affidavit says

According to The Citizen, the Reserve Bank’s affidavit alleges that Kastelo moved funds offshore using clients’ allowances and that there is reason to believe the company used those allowances for its own benefit. The affidavit also alleges that Kastelo opened offshore bank accounts in clients’ names, used third parties’ foreign investment and discretionary allowances to externalise funds, conducted transactions without clients’ knowledge or participation, and misrepresented its activities in compliance declarations submitted to the central bank.

Court ruling and frozen funds

The Johannesburg High Court dismissed Kastelo’s appeal seeking to unfreeze its bank accounts while the Reserve Bank investigates, with Acting Judge S. Johnson dismissing the application and ordering costs on the punitive attorney‑and‑client scale, The Citizen reports. The Reserve Bank has already frozen a portion of Kastelo’s funds held at Access Bank, and a broader investigation is under way.

Burke’s role at Kastelo and in politics

The Citizen states that Kastelo was founded and is chaired by Dr Mark Burke. Burke served as Kastelo’s CEO until June 2024, when he handed over the role to Nicholas Burke after being called to Parliament following the 2024 national elections, while remaining on as chairman. In his political roles, Burke serves as the DA’s federal finance chairperson and sits on parliamentary committees overseeing appropriations and finance.

Political reactions

The Economic Freedom Fighters described the allegations as serious and scathing. The EFF said:

“This is not a paperwork error. It is the unauthorised use of other people’s money and identities, the concealment of offshore accounts, and deception of the central bank. That is financial crime, plain and simple.”

“The DA markets itself as the party of clean governance and financial discipline. Yet its own finance chairperson is implicated in a scheme that undermines the very principles they claim to uphold.”

The ANC Parliamentary Caucus has called for Burke’s removal from parliament’s finance‑related committees. ANC Parliamentary Caucus spokesperson Cde Hlengiwe Hadebe said Burke’s continued role on those committees was “simply untenable” and added:

“Parliament cannot demand accountability from the Reserve Bank while tolerating a glaring conflict of interest in its own oversight structures.”

Response sought

According to The Citizen, the newspaper has reached out to Burke and the DA for comment.

What happens next

The Reserve Bank investigation continues while the court has left the freeze on some Kastelo funds in place. Political calls for accountability from the EFF and the ANC have intensified following the affidavit and the court judgment.