New details about investigation into DA finance chief’s company, which allegedly took R4 billion out of the country illegally

Finance Minister Enoch Godongwana has confirmed that the investigation into fintech company Kastelo is ongoing, with the firm accused of illegally taking R4 billion out of the country.

The Reserve Bank’s investigation into Kastelo made headlines earlier this year due to its link to former DA finance chief Mark Burke, who co-founded and once chaired Kastelo.

Since the investigation came to light, the DA has removed Burke from his roles in Parliament’s finance committee and the party’s parliamentary finance cluster.

However, he continues to serve as an active Member of Parliament and as the DA’s Federal Finance Chairperson.

Burke has also publicly stated that he was not involved in the day-to-day operations of Kastelo since stepping down as chair in February 2026.

On Friday, 25 September 2026, Finance Minister Enoch Godongwana confirmed that the investigation into Kastelo is still ongoing.

This was said in response to a Parliamentary question from MP Alan Beesley, who asked Godongwana to provide details on the investigation.

Godongwana confirmed that an affidavit by an investigator in the Reserve Bank’s Financial Surveillance Department identified a reasonable suspicion of exchange‑control contraventions. 

He said the investigation commenced in October 2025, with the initial investigation focused on transactions conducted between 4 August 2025 and 21 November 2025.

“The investigation remains ongoing, and its scope may be expanded should additional transactions outside this period be identified,” he said.

He explained that the Reserve Bank had reasonable suspicion that Kastelo conducted foreign exchange transactions amounting to R4 billion in contravention of the Exchange Control Regulations. 

Kastelo has been accused of using its clients’ Single Discretionary Allowances (totalling R6.69 million) and Foreign Investment Allowances (totalling R3.5 billion) to move this money abroad.

“It is alleged that these funds were ultimately used to acquire crypto assets abroad, which were subsequently sold through local crypto asset service providers,” Godongwana said.

“Preliminary investigations indicate that the benefit of these transactions accrued to the entity.” 

“The ongoing investigation will determine the full extent of any contraventions that may have been committed and whether any further regulatory breaches occurred.”

Godongwana further confirmed that the question of whether Kastelo’s clients were aware of these actions would form part of the investigation.

“The SARB has identified cases where it has been alleged that certain clients were not aware of the fact that foreign bank accounts were opened in their names,” he said.

The investigation came to light when the Reserve Bank took administrative action against Kastelo by freezing its bank account.

The Finance Minister said this action effectively preserved R15 million that was in Kastelo’s bank account at the time.

“The investigation has not been completed, and it would therefore be premature to make a determination as to whether or not the matter should be referred to the relevant law enforcement agencies,” he said.

Kastelo previously told Daily Investor that it has always conducted its business with integrity and in compliance with applicable law.

“Kastelo, as a licensed financial services provider, administered the arbitrage process on clients’ behalf, for their benefit, in line with a discretionary mandate and against a fee,” it said.

“We do not agree with the statement that ‘Kastelo used its clients’ funds to move money offshore, potentially in contravention of foreign exchange control regulations’.”