DA Federal Finance Chair Dr Mark Burke has recused himself from parliament’s finance committee and finance cluster following mounting political pressure over a Reserve Bank investigation into his fintech company Kastelo.
The announcement was made on Wednesday by DA Parliamentary Leader George Michalakis, who said the decision was taken “out of an abundance of caution” to avoid perceptions of conflict of interest whilst the South African Reserve Bank (SARB) continues its probe into the company.
Kingsley Wakelin will assume the position of Finance Spokesperson.
The move marks a significant shift in the DA’s position after party leader Geordin Hill-Lewis initially defended Burke on Sunday, stating there was no finding of wrongdoing that would justify action against the MP.
SARB investigation centres on R4 billion transfers
The SARB’s Financial Surveillance Department is investigating Kastelo Proprietary Limited for alleged contraventions of exchange control regulations involving approximately R4 billion in offshore transfers.
According to an affidavit filed by SARB investigator André Malherbe, the central bank suspects Kastelo systematically circumvented exchange controls by misusing clients’ Single Discretionary Allowance and Foreign Investment Allowance between November 2021 and November 2025.
The affidavit alleges that Kastelo incentivised clients with bonuses to allow the use of their allowances, potentially without clients’ full knowledge that foreign bank accounts were being opened in their names. The SARB further alleges the company misrepresented its business activities to authorities and conducted transactions without client participation.
In November 2025, the SARB issued a blocking order against Kastelo’s Access Bank account. When the company challenged the order, the Johannesburg High Court dismissed the application on 28 July 2026, ruling that the Reserve Bank had established valid grounds for the freeze whilst its investigation continues.
Opposition parties demand ethics probe
Both the ANC and EFF had called for Burke’s removal from finance-related committees and launched demands for a formal ethics investigation by Parliament’s Joint Ethics Committee.
The ANC Parliamentary Caucus argued that Burke’s presence on committees tasked with overseeing the financial architecture of the state, including the SARB, creates a conflict of interest.
The EFF demanded that the probe be pursued to its conclusion, including potential criminal referral, without special treatment for Burke due to his political standing.
Burke maintains innocence
Burke has stated he resigned from Kastelo in 2024 and is no longer involved in its operations. He maintains he has acted ethically and lawfully throughout and is not personally under investigation by any agency.
The MP said he has consistently recused himself from SARB-related matters in parliament and made the necessary declarations to parliament regarding his previous involvement with the company.
