Why did Police Summon South Africa’s Finance Minister Gordhan?
The South African police have summoned finance minister Gordhan as he is questioned in relation to tax irregularities. The Hawks police division (South Africa's Directorate for Priority Crime Investigation) called minister Gordhan on Monday and since then he was taking legal advices in attempt to handle the situation.
Gordhan will have to report back to the Hawks until Thursday as he will receive a warning statement before any charges can be made.
What investors are worried about in relation to this matter is the lack of clarity regarding who will lead the finance ministry. The economy is on the verge of recession and might suffer credit rating downgrading to “junk” status by the end of the year.
The ZAR went down 3% following these events and is at is now at its lowest point in 3 weeks. Some believe there is a campaign running against minister Gordhan in attempt to knock him down.
We are now left to wait and see how this issue will unfold.
Now is the Time to Trade the News
Open an Account Now!