“I do not intend to present myself for a warning statement for many considerations, both legal and given my other commitments”, Gordhan wrote in a letter to the Hawks.
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“The arrest of the finance minister would shatter investor confidence, risk a sovereign ratings downgrade and be a disaster for the already fragile zero growth, zero jobs economy in South Africa”, the member of the opposition Democratic Alliance said in a statement. “I hope it certainly doesn’t do that now”, Gordhan said referring to the day President Jacob Zuma fired Nene.
Spokespersons for Mr. Zuma and the Hawks didn’t respond to requests for comment.
“There are two matters raised by the Hawks and these are contravention of the National Strategic Intelligence Act‚ 39 of 1994 as well as Sections 34 and 81 (2) of the Public Finance Management Act‚ 1 of 1999”.
A warning statement is regarded as a precursor to criminal charges.
Gordhan is also accused of setting up an investigation unit within Sars which gathered, collected and evaluated intelligence. It allegedly resulted in unauthorised and/or fruitless and wasteful expenditure, and corruption in terms of the Prevention of Corrupt Activities Act.
In December previous year, President Jacob Zuma sacked the then finance minister, Nhlanhla Nene, replacing him with a little-known MP, David van Rooyen.
“I was told that Mr. Pillay sought in this way to gain access to his pension fund to finance the education of his children”.
This related to his granting early retirement to Pillay, the former deputy head of Sars.
Gordhan approved Magashula’s proposal because he “believed it to be entirely above board”.
South African Finance Minister Pravin Gordhan said that he had done nothing wrong by authorizing the establishment of a special investigative unit when he headed the national tax agency and he wouldn’t obey a police instruction to present himself for questioning.
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It has always been an open secret that Moyane and Gordhan do not get along, with Moyane defying Gordhan on several direct instructions in the past. The Treasury confirmed the Hawks had contacted Gordhan and that he was seeking legal advice. “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?”, said Gordhan.
