Police summon finmin:
South African assets slumped on Wednesday after an elite police unit summoned Finance Minister
Pravin Gordhan over an investigation into a suspected rogue spy unit in the tax service, fuelling speculation that there was a plot to oust him.
Gordhan and other former officials at the South African Revenue Service (SARS) must report to the Hawks on Thursday morning in relation to contravention of surveillance regulations, a source close to the matter told Reuters.
The announcement added to investors’ worries about leadership at the finance ministry as Africa’s most developed economy teeters on the edge of recession and credit rating agencies consider downgrading it to “junk” status by year-end.
Shadow finance minister David Maynier urged authorities not to take any more formal steps against Gordhan.
“The arrest of the finance minister would shatter investor confidence, risk a sovereign ratings downgrade and be a disaster for the already fragile zero growth, zero jobs economy in South Africa,” the member of the opposition Democratic Alliance said in a statement.
The Treasury confirmed the Hawks had contacted Gordhan and that he was seeking legal advice, but declined to go into further details.
A Zuma-backed plan to build a fleet of nuclear power plants, at a cost of as much as $60 billion, has been a cause of tension with the Treasury for months and is likely adding to pressure on Gordhan’s position, analysts say.
Russian state-backed companies are the favourites to win the nuclear bid, industry sources say. (RTRS)