Rand takes beat­ing as Gord­han drama deep­ens

Chronicle (Zimbabwe) - - Business -

CAPE TOWN The rand was a tragic vic­tim yes­ter­day, a day dom­i­nated by the con­tin­ued un­fold­ing of the drama be­tween Fi­nance Min­is­ter Pravin Gord­han and the Hawks.

By late af­ter­noon the rand was down 4.91 per­cent at R14.24 to the dol­lar, down 4.23 per­cent at R16.02 to the euro and down 5.63 per­cent at R18.84 to the pound.

Gord­han was sum­moned by the Hawks to ap­pear at their of­fice to­day to ob­tain a warn­ing state­ment. How­ever, he said in a state­ment is­sued by Trea­sury that he had been ad­vised that he is un­der no le­gal obli­ga­tion to do this and will, there­fore, not meet the Hawks.

Gord­han em­pha­sised that he is not a sus­pect in the Hawks’ in­ves­ti­ga­tion into cer­tain Sars is­sues.

The Hawks want to meet with Gord­han and other for­mer SA Rev­enue Ser­vice of­fi­cials to­day to re­ceive a letter of warn­ing (which pre­cedes an of­fi­cial charge) re­gard­ing an in­ves­ti­ga­tion unit set up when Gord­han was Sars com­mis­sioner from 1999 to 2009.

In a state­ment is­sued by Trea­sury yes­ter­day af­ter­noon, Gord­han said he has a job to do in a dif­fi­cult eco­nomic en­vi­ron­ment and serve South Africa as best he can. “Let me do my job,” he im­plored. Adam Phillips of Umkhulu Con­sult­ing told Fin24 the rand had been at the cen­tre of cur­rency move­ment yes­ter­day.

‘‘We have seen a stronger dol­lar on the back of the pre­vi­ous day’s good hous­ing num­bers, but op­er­a­tors are wary of Yellen’s speech at Jack­son Hole on Fri­day. The pound had an­other good day and post Brexit data shows the econ­omy is hold­ing up well,” said Phillips.

“Re­gard­ing the rand, I think most play­ers have over played what to­mor­row was go­ing to bring. It could be a damp squib now, although that does not mean that this is the end of it. We could still see some move­ments ei­ther way which will make Nenegate look like pos­i­tively tame. The move­ments will be very big and it won’t take much to push it around. It touched 14.2650, but is back at 14.17 now.” — Fin24

In his view, Gord­han came out on top again in his news con­fer­ence yes­ter­day af­ter­noon. “He won’t meet the Hawks to­mor­row, but he has of­fered to as­sist. Clearly he be­lieves he has not done any­thing wrong. He has stressed this so many times that you would think his at­tack­ers might take no­tice,” said Phillips.

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