Ministers step up for Gordhan

21 October 2016 - 09:09 By BABALO NDENZE and BLOOMBERG

Finance Minister Pravin Gordhan received a major boost in his fight against a charge of fraud when his cabinet colleagues threw their weight behind him. The cabinet decision was announced by Minister in the Presidency Jeff Radebe, who said it "unanimously" backed Gordhan.The National Prosecuting Authority's decision to charge Gordhan has split President Jacob Zuma's executive and the governing party into two factions - with those aligned to Zuma pushing for Gordhan's prosecution, while others are questioning the NPA's motives.The decision suggests that Gordhan's backers won the day in Wednesday's cabinet meeting. Gordhan's backers in cabinet include Health Minister Aaron Motsoaledi, Tourism Minister Derek Hanekom, Public Works Minister Thulas Nxesi and Deputy Health Minister Joe Phaahla.The ministers came out publicly in support of Gordhan last week and vowed to fight for him.Radebe said the cabinet affirmed its support for Gordhan, saying under section 35 of the constitution the finance minister was innocent until proven otherwise in court."The cabinet remains confident in the country's criminal justice system and the judicial processes that have defined our democratic era. These must be allowed to take their course," said Radebe. He said the cabinet was "unanimous" on the Gordhan matter, "with a few exceptions"."Cabinet continues to act as a collective. That's why even this statement is a collective recollection of what [the] cabinet has done," said Radebe.He said the cabinet did not discuss the charge against Gordhan because it was not the "prerogative of the government to discuss charges of any member".Political analyst Ralph Mathekga said the cabinet was clearly divided on the Gordhan issue. "Factions around this whole thing of Treasury continue to be expressed in different institutions, including cabinet," said Mathekga.In a separate development, FirstRand said it agreed with Gordhan that he cannot interfere with the bank's decision to cut their services to the Gupta family.Gordhan last week asked the high court to order that he had no authority to stop banks from closing accounts of Gupta-controlled Oakbay Investments.Should the banks join Gordhan's application it may open the way for lenders to explain their actions, which they have so far refused to do because of client confidentiality.FirstRand said in response to questions: "FirstRand supports the position of the minister of finance that he is neither empowered [nor] obliged by law to intervene." The group's attorneys would advise FirstRand on how to address the matter, it said.Old Mutual's Nedbank is still considering the "best way forward" with its legal team over the issue and will let the state attorney know by the deadline today on whether to join or oppose Gordhan's application.Barclays Africa is taking legal advice. Standard Bank declined to comment.In his affidavit Gordhan highlighted 72 transactions totalling R6.8-billion by Gupta-owned companies that anti-money-laundering agents considered suspicious...

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