South Africa drops fraud charges against Finance Minister Gordhan

Kayode Ogundele
Kayode Ogundele
Pravin Gordhan, South African Finance Minister

South Africa’s chief prosecutor has dropped fraud charges against Finance Minister Pravin Gordhan. Gordhan had described the allegations as without merit and politically motivated.

News of the charges earlier this month rattled the financial markets and the South African rand fell more than three percent.

The finance minister has been widely praised for taking a tough stance against corruption and has been at loggerheads with President Jacob Zuma.

He was appointed for a second stint in the job late last year after the president’s preferred candidate lasted just a few days.

The fraud charges related to alleged severance payments made to two senior executives at the South African Revenue Service (Sars), when it was under Mr Gordhan’s leadership 10 years ago.

After reviewing the charges, the head of South Africa’s National Prosecuting Authority (NPA), Shaun Abrahams, said there had been no criminal intent.

At a news conference on Monday, Abrahams rejected criticism that the original charges had been politically motivated.

He said that everyone was treated equally before the law, and that laying charges and reviewing them was normal practice, IOL news website quotes him as saying.

He added that he did not owe anyone an apology and dismissed calls for him to resign.

When President Zuma sacked Nhlanhla Nene as finance minister last December, replacing him with David van Rooyen, the widely-criticised move sent the rand to record lows and caused the stock market to tumble.

Within a few days Gordhan was appointed in Van Rooyen’s place – a move designed to quell market discontent and restore some confidence.

Many analysts believe that President Zuma would like to replace Gordhan, who had previously served as South Africa’s finance minister from 2009 until 2014.

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