When National Prosecuting Authority (NPA) head Shaun Abrahams announced that Gordhan, former South African Revenue Service commissioner Oupa Magashula, and his ex-deputy Ivan Pillay will face charges of fraud related to Pillay’s early retirement, the first thing that went for the dogs was the value of the rand.
The news has caused the under-fire Sterling the chance to stage a decent recovery and the Pound to Rand exchange rate recovered to 17.42 in no time. The rand slipped by 3% to 14.22 against the dollar and the EUR/ZAR exchange rate was hitting 15.75 after slipping 2.5%.
Many analysts believe the move against Gordhan is nothing more than political interference in South African president Jacob Zuma’s fight for political survival – despite Abrahams protesting the opposite.
Economist Dawie Roodt is quoted by MyBroadband.co.za as saying South Africa has a corrupt president, who is fighting for his political survival against potentially going to jail. Roodt argues that giving up power may result in President Jacob Zuma facing prosecution for corruption, which may land him in a “small room”.
What we are seeing now, says Roodt, is Zuma fighting back. This involved getting rid of people in his cabinet who do not support him – like Gordhan. Roodt predicts that we will see the heads of a few ministers who do not support Zuma roll in the near future.
Analyst sees the charges against Gordhan as part of a bitter fight tearing the ANC in half – and which could spell the end of Zuma’s reign of destruction. The Joburg rag – The Citizen – writes that the “gloves are off. There is going to be blood on the floor, as the President Jacob Zuma faction faces off against Deputy President Cyril Ramaphosa’s supporters”.
Journalist Eric Naki writes the trigger was pulled when the National Prosecuting Authority (NPA) announced Finance Minister Pravin Gordhan would be criminally charged. He makes reference to the “implosion of the Zuma regime” and that he Zumster is “fighting like a wounded buffalo”.