Zuma Condemns Reports of Potential Sackings, as Paper Says Gordhan to be Arrested

The same day that the Sunday Times has come out with a report that Finance Minister Pravin Gordhan could be arrested very soon by the Hawks, the president’s office released a statement condemning the media for speculating that cabinet ministers are about to be fired.

“Ministers serve at the pleasure of the President,” the statement said, adding that “He has the prerogative to hire and fire Ministers at any time.” However, it continued, there were no plans to change the ministers of finance (Gordhan) and trade and industry (Rob Davies), both of which had been speculated in the press recently.

“The Presidency condemns the actions of information peddlers who keep spreading rumours about alleged changes in the Cabinet of President Jacob Zuma,” the statement said, adding that the president and government are “focused on the goal of uniting business, labour, government and the whole country behind the mission of strengthening the economy and reigniting growth during the current difficult economic climate”.

However, the Sunday Times reported on Sunday, “The Hawks want Finance Minister Pravin Gordhan to be prosecuted for ‘espionage’ in a case related to the activities of the South African Revenue Service ‘rogue unit’ established while he was the tax agency’s commissioner.” It said he faced “imminent arrest”.

The Presidency later on Sunday came out with a statement saying it noted the Sunday Times story and that the allegation had been denied by law enforcement officials. Zuma’s office also said, “It is clear therefore that the story is the work of dangerous information peddlers who wish to cause confusion and mayhem in the country.”

The Democratic Alliance said the arrest of Gordhan would “cause an economic earthquake and make ‘9/12’ (the date his predecessor Nhlanhla Nene was sacked by Zuma, which sent the market and rand into freefall) look like a minor economic tremor”.

The issue of Gordhan’s implication in the ‘rogue unit’ affair was raised earlier this year, soon after Gordhan took over his post, and was seen by many in the media as the Zuma-controlled Hawks’ way of compromising the new finance minister, who was opposed to several plans – the nuclear energy programme, as well as a South African Airways deal skippered by his friend Dudu Myeni – apparently backed by Zuma. Gordhan said he had done nothing wrong, although the Hawks had apparently delivered him numerous questions to answer.

In an editorial this week in Business Day, reporter Carol Paton said that Gordhan and Zuma had been fighting a battle for control for the five months since his appointment, and that Zuma “has the upper hand”.

“With Mr Zuma very much in the driving seat, the country is pulled ever further into dangerous waters, despite the valiant fight by the very dogged Mr Gordhan,” Paton concluded.

The DA said, “Rumours reported today suggest that the Minister may be arrested, together with eight other officials, to face charges relating to the SARS “rogue unit”.

“However, spokesperson for the National Prosecuting Authority, Luvuyo Mfaku, reportedly claimed no decision has been made to prosecute and that the matter remained under investigation.

“The timing of the rumours could not be worse and will not only cause further turmoil in the markets, but also compromise efforts to avoid a ratings downgrade in South Africa.”