Rand plummets as Gordhan summonsed Defence lawyers preparing retort Prosecutors remain adamant that a surveillance unit reportedly set up by SA’s current finance minister went against normal, legal practice. NAMPA/REUTERSSouth African prosecutors issued Finance Minister Pravin Gordhan with a formal summons on Tuesday in relation to the establishment of a tax department investigation unit a decade ago, sending the rand reeling.
The currency fell as much as 3% when prosecutor Shaun Abrahams made his first announcement at a news conference in the capital, Pretoria.
The currency then extended its falls, trading at 14.2950 against the dollar at 08:33 GMT, a 3.5% decline.
Gordhan, who is highly respected by financial markets, has painted the allegations about his role in establishing the special tax unit as “political mischief” but said prosecution officials delivered a summons to his house on Tuesday morning.
He was not at home at the time, he told reporters, adding that his lawyers would be issuing a statement shortly.
Abrahams denied any mischief in the handling of the case, saying the surveillance unit was set up in a “very strange manner” and had not been cleared by the national intelligence services.