COMPANY COMMENT: Tribunal takes broader look at Citibank fine
It seems that the tribunal is unhappy about rubber-stamping the terms of the agreement
It seems, reasonably enough, that the tribunal is unhappy about rubber-stamping the terms of the agreement. The critical term is, of course, the R69.5m "administrative penalty" Citibank is required to hand over. This is less than petty cash for a bank the size of Citibank and probably doesn’t amount to more than a few seconds worth of rand forex trading. The tribunal has not indicated whether it feels the sum is too big or too small, it appears merely to want a sense of context. Essentially, it wants to know how the commission came up with the figure.And so it has asked for additional information about the percentage of turnover on which the fine is based. Remarkably, this key piece of information was not contained in the settlement agreement. Perhaps the commission was so keen to put the Citibank settlement to bed, it had forgotten to supply the details. Or perhaps it assumed the tribunal would be just as keen. Citibank is the first of the banks to reach a settlement with the commi...
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