News of Gordhan summons sends rand plummeting
The rand has weakened after news that Finance Minister Pravin Gordhan has been summoned to the Hawks headquarters in Pretoria amid an ongoing SARS rogue unit debacle.
Minister Gordhan and four former senior Sars officials have been handed letters informing them that they must report to the Hawks' address at 10.00am on Thursday morning.
Efficient Economist, Francois Stofberg says the manner in which the Minister of Finance has been summoned raises several issues.
"Markets are starting to question and casting the shadow over the policy and politics of the country and how it works. The timing is also off especially so soon after the municipal elections. This begs the question whether the process was delayed so that they could win some votes," Stofberg said.
"People are uncertain as to why this is happening now, subsequently markets have reacted. The Rand has plummeted from R13.30 to above R14 (to the dollar) this morning," added Stofberg.
Treasury says Minister Gordhan is taking legal advice on the matter.