The Federation of Unions of South Africa (FEDUSA) is concerned that the letter to summons Finance Minister Pravin Gordhan to appear before the Hawks on Thursday 25 August 2016 at 10h00 has already destroyed investor confidence resulting in a weakened Rand from R13.21 to the dollar to R13.90 said Dennis George, FEDUSA General Secretary. The Hawks’ letter of the summons was leaked to the media at the same time as it was delivered to the attorneys of the Finance Minister.

It is workers who will suffer when the economy goes into a recession and it is abundantly palpable that the battle between SARS and the Minister of Finance is once again raging out of control. Moreover, ratings agency downgrade will be disastrous for the economy as well as for workers. The South African Reserve Bank has already reduced its forecast to zero percent growth for 2016, compared to 0,6 percent as previously predicted said George.

FEDUSA is of the opinion that pressure is being placed on Minister Gordhan because of his unwillingness to agree to a SAA request for government support until a new board has been appointed. Former Finance Minister Nene was removed after refusing the acquisition of new aircrafts. President Zuma has now taken a direct interest in the management of state-owned companies, including SAA, from Deputy President Cyril Ramaphosa, which were previously placed under National Treasury following a Cabinet Lekgotla concluded George.    

The credibility and safeguarding of Treasury, as the key government ministry remains crucial, to avoid further instability and volatility. Downgrade to junk status may well become a looming reality if the President pursues an ill-fated #3in1 blow at the Treasury. FEDUSA therefore calls on President Zuma to put the interest of the country and workers first, and allow the Minister of Finance to rescue SAA and all State-Owned Companies without fear or favour, concluded George.

Issued by FEDUSA