Gordhan rebukes detractors, warns of new fallout
FINANCE Minister Pravin Gordhan has said he hoped the grave economic fallout that resulted from the axing of his predecessor Nhlanhla Nene would not repeat itself.
Speaking in Cape Town during a debate organised by the Cape Chamber of Commerce and Industry on Wednesday evening, Gordhan tackled corruption and rent-seeking, sluggish economic growth, and also briefly addressed a summons sent to him by the Hawks to present himself to them yesterday to sign a warning statement in connection with the alleged setting up of a rogue spy unit within the South African Revenue Service when he was commissioner.
“Our job since December 2015 has been to work with business and labour leaders and ensure that the kind of gloom that 9/12 introduced doesn’t
weakening bias in the coming days and weeks, adding that he expected the currency to head to R14.36 a dollar “and potentially break through resistance with the next level to break being R14.57 to the dollar”.
Hammarlund said the biggest repeat itself. I hope it certainly doesn’t do that now,” Gordhan said referring to the day President Jacob Zuma fired Nene.
Gordhan briefly read out his statement on why he would not heed the summons to report to the Hawks.
He did, however, tackle corruption and patronage, even invoking founding father of South Africa, Nelson Mandela.
“Anybody in power can attract forces of patronage. The question is, is there enough transparency, is there enough of a spotlight and are the people who are supposed to keep us accountable actually doing so and making sure that we remain honest to what we say on public platforms and do the right things that we are supposed to do?” Gordhan asked.
“Mandela’s ANC wouldn’t tolerate much of what we are talking about.”
risk to that view was a dovish speech by Federal Reserve chairwoman Janet Yellen today, “which would send risky assets like the rand higher again, steamrolling any domestic political risks coming from the Zuma-Gordhan struggle.”
Gordhan did not spare the private sector, insisting if the sector cut out corrupt practices, many of the country’s emerging problems such as higher education funding could be tackled with ease.
“We can very easily pay for some of the things that we are pressured for at the moment – fees for university students that come from poor backgrounds… just stop some of the corruption that is going on,” he said.
“If you pay the right price for the coal that you buy, if your tenders are priced correctly… if you end even a quarter of that, you’ll get R30 billion to R40bn that the poor will benefit from, so there’s no point in using the poor as a point of political rhetoric… you must be serious about solving the problem of poverty and unemployment and the way you do it is to stop the bloody nonsense.” – ANA
The rand’s one-month implied volatility against the dollar remained above 20percent yesterday, the highest among emerging-market currencies, indicating that traders still saw risks ahead. – Additional reporting by Bloomberg.