Gordhan will read budget

DESPITE glaring divisions in President Jacob Zuma’s executive, the cabinet said yesterday that it unanimously backed Finance Minister Pravin Gordhan in his battles with the National Prosecuting Authority.

Minister in the Presidency Jeff Radebe said Gordhan was innocent until proven otherwise. This was a principled position in line with the country’s laws and the constitution.

Asked if this was a unanimous cabinet decision, as some ministers had openly come out against Gordhan, including Co-operative Governance Minister Des van Rooyen, Radebe said the cabinet backed Gordhan.

He said the discussions in the cabinet on Gordhan did not look into the merits of the case.

The statement was a reflection of the cabinet decision, and there was unanimity in the cabinet on this position.

This week three ministers openly came out in support of Gordhan and said the charges against him were baseless.

Health Minister Aaron Motsoaledi, Public Works Minister Thulas Nxesi and Tourism Minister Derek Hanekom backed Gordhan.

Economic Development Minister Ebrahim Patel has also supported his cabinet colleague.

But Van Rooyen was the first minister to openly challenge Gordhan to subject himself to prosecution by the NPA.

Radebe said the cabinet did not discuss the charges Gordhan was facing, but their support was premised on the constitution.

“We never discussed the charges, but we discussed the principle that the Minister of Finance is innocent until proven guilty. That is why he will be delivering the medium-term budget policy statement,” said Radebe.

He also expressed concern about the possibility of a downgrade in December.

Economists and experts had warned of a downgrade if the infighting in the government continued, there was policy uncertainty and structural reforms in the economy were not implemented.

“We are concerned about the possibility of a downgrade. That is why the president appointed Gordhan and (Business Unity South Africa president) Jabu Mabuza to go on a roadshow to avert a downgrade.”

Ratings agencies will be in the country in November to conduct another review before they announce their results in December.

In the last review in June, when South Africa escaped a downgrade, the ratings agencies warned the country to get its act together.

But the infighting in the government has not made the situation better.

A downgrade could have severe consequences. It would mean difficulty for the government in borrowing from the international market; investors would leave the country and unemployment would increase.