Hill-Lewis summons Burke as DA weighs his fate ahead of FedEx meeting

Democratic Alliance finance chief Mark Burke was summoned to a meeting with Cape Town mayor Geordin Hill-Lewis before the party’s Federal Executive (FedEx) meets on Wednesday to consider his future amid a South African Reserve Bank investigation into his business dealings.

DA federal chairperson Solly Msimanga confirmed in an interview on Tuesday that Burke had been engaged by senior party leaders, with the outcome of those discussions expected to form part of a report to FedEx.

The party is considering whether Burke should step aside from his parliamentary responsibilities while the investigation continues.

Msimanga said the DA leadership was still “applying its mind” to the matter and would not pre-empt FedEx’s decision.

The questions that have been asked, the responses will determine what happens next.

—  DA federal chairperson Solly Msimanga

“There is going to be a report that will come to FedEx, and then FedEx will then apply its mind in terms of what is to then happen,” he said.

Asked whether the DA would ask Burke to step aside, Msimanga said: “I cannot at this point begin to say ‘this is what is going to happen tomorrow.’”

“The questions that have been asked, the responses will determine what happens next.”

This comes as pressure mounts on the DA over Burke’s position following reports that the Reserve Bank is investigating his company over billions of rand in transfers.

The central bank is investigating Burke’s fintech company over about R4bn in transactions that allegedly circumvent exchange control rules.

Burke, one of the DA’s donors, is at the centre of a legal battle between Kastelo, the company he founded, and the South African Reserve Bank after the central bank moved to freeze some of its funds held with Access Bank.

Sunday Times’ sister publication Business Day reported on Monday that the Reserve Bank alleges Kastelo misrepresented its business activities to authorities in an attempt to circumvent South Africa’s exchange-control regime.

Rather than immediately distancing itself from Burke, the DA has opted to establish the facts and allow its internal processes to run their course.

Burke broke his silence on Tuesday in a joint statement with DA federal council chairperson Ashor Sarupen, denying any wrongdoing.

He said he had previously served as chairperson of the broader Kastelo group but ceased holding the position in February this year.

“The matter before the court concerned whether the Reserve Bank had grounds to issue a blocking order while its investigation continues. The court found that it did,” Burke said.

He maintained that he had always acted ethically and lawfully and was confident the SARB investigation would ultimately find no wrongdoing on his part.

The Sunday Times reported on Tuesday that Burke had donated just over R400,000 to the DA since the 2023/24 financial year.

The donations have added another layer of scrutiny to the party’s handling of the matter, particularly after Hill-Lewis defended Burke in response to questions from the Sunday Times.

Sarupen has similarly argued that there is no finding of wrongdoing against Burke that would justify the DA treating him as though he had already been found guilty.

Msimanga defended the party’s cautious approach, saying it did not want to act hastily and risk undermining its credibility.

“You want to respond with facts. You don’t want to respond hastily or respond without having your ducks in a row,” he said.

But the decision not to immediately ask Burke to withdraw from parliamentary structures is likely to intensify scrutiny of the DA leadership, particularly as the party has positioned itself as a government-in-waiting committed to holding public officials and rival parties to high standards of accountability.

Msimanga rejected comparisons between the DA’s handling of Burke and its criticism of allegations involving politicians from other parties, saying the party was actively investigating the matter.

On former DA leader Tony Leon and his communications company, Resolve Communications, Msimanga said the party could not subject Leon to its internal disciplinary processes because he was no longer a DA member.

“I can only hold people that are in the DA accountable,” he said.

Msimanga said the DA was pursuing the Burke matter through the appropriate channels and would make announcements once its internal engagements had been concluded.

He also said the party was still investigating allegations made by former DA leader John Steenhuisen involving Leon and Hill-Lewis.