Rand gains as president supports finance minister

Read the Presidency’s full statement: ‘the minister has not been found guilty of any wrongdoing’.

South African bonds and the rand rallied after President Jacob Zuma said he had “full confidence” in Finance Minister Pravin Gordhan, allaying concern that the Treasury chief could be replaced amid an investigation into irregularities at the tax authority.

The rand strengthened 1.2% to 13.9896 per dollar at 11:31 a.m. in Johannesburg, heading for the biggest gain in three weeks. The yield on rand-denominated bonds due in December 2026 dropped nine basis points to 8.96%.

The rand plunged more than 5% in two days after Gordhan was summoned to report to a special police unit investigating alleged irregularities at the tax authority, which he led until 2009. The finance minister said on Wednesday he had done nothing wrong and wouldn’t report to the so-called Hawks unit.

The presidency said in a statement on Thursday that Zuma “wishes to express his full support and confidence in the minister of finance and emphasises the fact that the minister has not been found guilty of any wrongdoing.”
 
© 2016 Bloomberg L.P

 

Full statement:

PRESIDENT ZUMA DOES NOT HAVE POWERS TO STOP INVESTIGATIONS
The Presidency has noted the concerns expressed by individuals and organisations in society about the reported investigation by the Directorate for Priority Crime Investigation (the Hawks) involving the Minister of Finance, Mr Pravin Gordhan as well as other former South African Revenue Services officials.

President Jacob Zuma wishes to express his full support and confidence in the Minister of Finance and emphasises the fact that the Minister has not been found guilty of any wrong doing.

The Presidency wishes to also emphasise that President Zuma does not have powers to stop any investigations into any individual/s. Our constitutional democracy, the strength of our state institutions and the effectiveness of our courts in upholding and protecting rights is our guarantee of justice and fairness.

The negative effect of these matters on our economy, personal pressure on the individuals affected as well as the heads of institutions, however disturbing, cannot because for the President to intervene unconstitutionally.

The broader speculation linking these investigations to government and state-owned institutions are equally unhelpful and they are also false and misleading.

Issued by: The Presidency

COMMENTS   10

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

He just lied to each and every South African citizen again.

Yes, he really is a prick – he’s proved that in the shower.

Translation: “I have full confidence that my plan to remove this obstacle to the treasury is coming together splendidly.”

“Does not have the power to stop investigations into individuals” What utter bullocks! He could stop it tomorrow, he has the Hawks in his pocket!

Maybe his fund manager has shorted the ZAR and now went long again?
After all he’s got to pay a fine?
Or am I totally on the wrong track?

Jacob speaks with forked tongue.

Nero fiddled whist Rome was burning Zuma’s fiddling is causing our country to burn
please Mr President stop fiddling and step down for our beloved country to stop burning
instead of putting out the fires ignited by your fiddling give those that can start rebuilding the trust of the ones that can create economic activity that filters down to the most needy
We are crying for our beloved country

He’s like Mugabe. A megalomaniac who will stop at nothing until he possesses every bank-note in the country and absorbs all the land into Nkandla. No, more like 10 times worse that mad Bob. It’s near the end though

Most normal people have a default position that believes authority is good. This is as it should be because that is the way society should work. It is when authority goes bad that things get messy. Decent humans struggle with that. Judging by the press interview with Antonie, Kreigler and Bizos and the comments on what happened at the Helen Suzman Foundation etc., it appears to be the Hawks that are the rogue unit and not the unit in SARS.

Where is the so-called Rand gain? All I’m seeing is it slipping… R14.27 to the dollar right now.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: