South Africa ‘Hawks’ Crisis Hits Investor Nerves
South Africa’s rand recovered some losses and bonds bounced off two-month lows after Finance Minister Pravin Gordhan refused to present himself to police over a probe into an alleged ‘spy’ unit at the country’s tax service. David Pollard reports in the video below. South Africa’s had its crises, but this is still massive headline news. […]
South Africa’s rand recovered some losses and bonds bounced off two-month lows after Finance Minister Pravin Gordhan refused to present himself to police over a probe into an alleged ‘spy’ unit at the country’s tax service. David Pollard reports in the video below.
South Africa’s had its crises, but this is still massive headline news.
An open row between Gordhan and the elite police unit, called the Hawks – that only thinly disguises, some claim, an emerging power struggle between Gordhan and President Jacob Zuma.
Gordhan refused a police request to face further questions and said the alleged charges are “wholly unfounded” and “I have a job to do in a very difficult economic environment, and serve South Africa as best I can. Let me do my job.” [Read Pravin Gordhan’s full statement below.]
According to Reuters the Rand lost over five percent since Tuesday… though both it and government bonds steadied after Zuma issued a statement of confidence in Gordhan.
Supporters of Gordhan are demanding the truth behind allegations of a plot against him.
Some say if Zuma were to fire Gordhan now, it would “destroy” the economy.
Watch Video below:
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Finance Minister Pravin Gordhan’s Full Statement, 24 August 2016
I confirm that on 22 August 2016, my attorneys received a letter from the Directorate for Priority Crime Investigations (“the HAWKS”) requesting that I present myself at their offices on 25 August 2016, at 14h00 in order that a warning statement may be obtained from me. The letter from the HAWKS is attached.
I have since taken legal counsel and my response through my attorneys to the letter by the HAWKS together with my statement are attached. I am advised that I am under no legal obligation to present myself to the HAWKS as directed in their letter. I have decided not to do so for the following considerations:
- I was advised in no uncertain terms by the Head of the HAWKS, General Ntlemeza, in his letter of 20 May 2016, in response to my attorney’s enquiry, that I am not a suspect in the HAWKS’ investigation.
- I have provided a comprehensive account of matters which the HAWKS had raised in their 27 questions on 18 May 2016.
- I am advised by my legal team that the assertions of law made by the HAWKS in their letter of 21 August 2016 are wholly unfounded on any version of the facts. There are two matters raised by the HAWKS and these are contravention of the National Strategic Intelligence Act, 39 of 1994 (“the Intelligence Act”) as well as Sections 34 and 81 (2) of the Public Finance Management Act, 1 of 1999 (“PFMA”).These alleged contraventions are dealt with in detail in my attorneys’ attached letter. Suffice it to say they advise that the alleged charges are wholly unfounded.
I therefore, do not intend to present myself for a warning statement for many considerations, both legal and given my other commitments. I remain committed to assist the HAWKS in any bonafide investigation as stated in my statement.
I have a job to do in a difficult economic environment and serve South Africa as best I can. Let me do my job.
Issued on behalf of the Ministry of Finance Date: 24 August 2016