Weekend Argus (Saturday Edition)
Hawks deny Gordhan probe
Rand plummets ANC, Zuma back finance minister
THERE is no investigation into Finance Minister Pravin Gordhan, the Hawks say, despite a series of questions sent to him about his knowledge of a so-called “rogue” intelligence unit that allegedly operated in Sars during his term as commissioner there.
President Jacob Zuma and the ANC launched a damage control exercise after news of the letter to Gordhan broke, both expressing their full confidence in him, but contradicted each other on the motives behind it.
Whereas ANC secretary-general Gwede Mantashe described the developments as “a well-calculated destabilisation plan with all the elements of disinformation, falsehoods and exaggerated facts”, Zuma dismissed such concerns as “rumours and gossip which insinuate some conspiracy against Minister Gordhan”.
“These baseless rumours and gossip will not deter or divert government from moving forward with promoting fiscal consolidation and pushing for inclusive growth and job creation,” Zuma said.
Gordhan described the letter as an attempt to “intimidate and distract” him and the Treasury from their work in preparing the Budget.
“There is a group of people that are not interested in the economic stability of this country and the welfare of its people,” Gordhan said. “It seems they are interested in disrupting institutions and destroying reputations.”
He said he had deliberately kept quiet about the Hawks’ letter, which he received last Thursday, to avoid jeopardising the government’s reaction to the Budget and efforts to improve investor confidence.
He had been warned in the letter not to “interfere with State witnesses”, without being informed who they were.
He would, if necessary, take legal action to protect himself and the Treasury from “whatever elements seeking to discredit me, the institution and its integrity”.
He could say “categorically” the Hawks had nothing to investigate him for, Gordhan said. He thanked the ANC for “the support I have now received” and for its determination to ensure “vital state institutions” such as the Treasury and Sars were not damaged.
Mantashe said the timing of the letter from the
people that are not
interested in the
economic stability
of this country and
the welfare of its
Hawks “indicates clearly that there was intention to distract the minister” as he put the finishing touches to this week’s Budget.
Gordhan’s efforts to restore confidence were being undermined in an attempt to “reverse the gains our economy has made and have a destabilising effect in the long-term”, Mantashe said.
It was “disconcerting” that the questions to Gordhan had been leaked and the ANC had “reliable information” as to who was responsible and would “be engaging the person in this regard”.
“In the event that the Hawks have anything to investigate related to the minister and Sars, it would be in the best interest of our country if they did so professionally, using the correct channel and procedures and not seek to conduct a trial through the media,” Mantashe said.
Zuma said he would not comment on “matters in the media environment relating to Sars, which are being handled by law enforcement agencies, as this may... impact on their work and independence”.
However, it is unclear which lawenforcement agencies Zuma was referring to, after Hawks spokesman Hangwani Mulaudzi said yesterday it was not investigating Gordhan.
“There’s no investigation. If somebody sends you a letter, does it mean we are investigating you? No. We’re just seeking some clarifications and that’s it,” Mulaudzi said.
There was also no complaint against the minister. “We’re in the business of investigations, so if there are issues we are asking for it doesn’t necessarily mean somebody came and said, ‘Hi, I’m suspecting something,’” Mulaudzi said.
He would not say what had prompted the letter to Gordhan.
Zuma’s spokesman, Bongani Majola, did not respond to a request for clarity on which lawenforcement agencies the president had been referring to.
‘There is a group of
people’
Zuma and Mantashe’s differences over the motives behind the Hawks letter appear to reflect continued divisions in the ANC triggered by the president’s appointment of ANC backbencher David van Rooyen as finance minister in December.
Zuma was forced into a retreat after coming under pressure from business and alliance leaders, leading to the reappointment of Gordhan within four days.
The latest furore comes after Gordhan snubbed Sars commissioner Tom Moyane by denying him a seat at the media briefing before his Budget speech on Wednesday.
The two have been at loggerheads over a KPMG investigation into the rogue unit allegations commissioned by Moyane, details of which have been leaked to the media and a major restructuring at Sars being undertaken by Moyane in defiance of the minister.
Gordhan lashed out at the KPMG probe the day after he was reappointed as finance minister, saying he had never been given a chance to respond to the claims or been interviewed by KPMG before it made its purported findings..
In his statement yesterday, Gordhan reiterated that the unit and subsequent investigative units, “were legally constituted and approved at ministerial level”.
Reuters reported that following Gordhan’s statement, the rand fell sharply against the dollar, breaching the psychologically crucial 16.00 mark for the first time in two weeks.