Rand Slumps Following NPA’s Formal Summons To Gordhan


The rand today lost three percent of its value against the dollar, shortly after NPA head Shaun Abrahams announced Gordhan was being summonsed to appear in court next month.

As at yesterday, the rand was the second highest emerging market currency after the Mexican peso, due to a comeback in risk appetite.

At 10am, the rand was trading at R13.91 against the dollar before weakening to R14.24. By 11am, the rand extended its fall, trading at R14.24 to the dollar, R15.81 to the euro and R17.51 to the pound.

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Embattled Finance Minister Pravin Gordhan was issued a formal summon today in relation to the South African Revenue Services “rogue unit” by the National Prosecution Authority (NPA). NPA head Shaun Abrahams disclosed this at a press briefing in Pretoria.

As disclosed, Gordhan is accused number one and he’s being accused of fraud. Others also charged are; former SARS Commissioner Oupa Magashula, former dep, Ivan Pillay. It’s believed the charge of fraud linked to Sars’ payment to Pillay when he took early retirement.

Former deputy commissioner Ivan Pillay‚ was paid a whopping R3.9m‚ while group executive for strategic planning Peter Richter received R3.77m.

The two men were later suspended by SARS commissioner Tom Moyane in December 2014. And after a protracted disciplinary inquiry, the duo resigned in May 2015 .

Clearing the air on the development, NPA’s Abraham insisted that there’s no mischief in the long-running case. He maintained that Gordhan is being hunted because the so-called rogue unit was set up in a “very strange manner” and that it was not cleared by the national intelligence services.

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He added that only the President of South Africa has the authority to sign off an intelligence structure; but that there was no evidence that Former President Thabo Mbeki authorized the “rogue unit”.

He remarked that it is the duty of the NPA to pursue cases of public importance without fear or favor, retain an inward sense of impartiality and display an outward sense of objectivity.

Meanwhile, Gordhan has responded to the development. He told reporters that his lawyers would be releasing a statement shortly. He confirmed that prosecution officials had delivered a summons to his house on Tuesday morning.

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