BUSINESS UNITY SOUTH AFRICA FINDS TIMING OF ANNOUNCEMENT OF NATIONAL PROSECUTING AUTHORITY’S PLAN TO CHARGE FINANCE MINISTER GORDHAN MOST UNFORTUNATE

JOHANNESBURG, 11 October 2016 – Business Unity South Africa (BUSA) finds today’s announcement by the National Prosecuting Authority (NPA), that it plans to charge Finance Minister, Pravin Gordhan for alleged fraud, most unfortunate.

Commenting on the announcement made by NPA head, Adv. Shaun Abrahams this morning – a few days before Minister Gordhan is to present the Medium-Term Budget Policy Statement (MTBPS) in the National Assembly – BUSA President, Jabu Mabuza said that it was “most unfortunate” that this development takes place shortly after the return from New York and Washington DC of a high-level Government, business and labour delegation, led by Minister Gordhan, in an effort to ensure that the country avoided a possible sovereign credit downgrade.  

“While nobody is above the law, we remain deeply concerned about what appears to be the emergence of a pattern which sees serious allegations made against Minister Gordhan made very close to important dates and developments.

The Hawks presented Minister Gordhan with a list of questions a few days before he was due to present the 2016/17 Budget in the National Assembly. At the end of May, on the eve of a visit to South Africa by foreign ratings agency, the Hawks controversially invited the Minister for a visit to its offices following the issuing of a warning statement, and now, days before the MTBPS – and barely days after our return from the USA – the NPA makes this shocking announcement,” said Mabuza.

He said that BUSA genuinely believes that the kind of cooperation that has recently seen the Government, through the Treasury, working in a close partnership with organised business and labour would improve the economy, create jobs and stave off any possible sovereign credit downgrades. As a result, BUSA found the timing of the NPA’s announcement, which fuelled perceptions that there was an agenda to destabilize the economy, “most unfortunate”. Mabuza said such perceptions undermined investor confidence in the country’s policy environment.

BUSA Chief Executive Officer, Khanyisile Kweyama said while the organisation had taken note of the NPA's decision to summon Minister Gordhan to respond to fraud charges, BUSA wished to confirm its confidence in the South African judicial system. Kweyama emphasised that, in terms of South Africa’s laws, Minister Gordhan remained innocent until proven otherwise and the organisation continues to be confident in him.

“We reaffirm our confidence in him as Finance Minister and our great appreciation for his sterling work over the past few months, in partnership with the business and labour leadership, to steer the South African economy away from a possible credit downgrade,” Kweyama said.

Mabuza added that notwithstanding these developments, BUSA hoped that the Government, business and labour would continue to work closely together as partners in the manner that they have done since the beginning of the year.

Statement issued by Miyelani Shikwambana, BUSA, 11 October 2016