BLSA EXTREMELY CONCERNED BY TIMING OF DECISION TO CHARGE GORDHAN; REITERATES SUPPORT FOR FINANCE MINISTER
11 October 2016
Business Leadership South Africa ( BLSA) is deeply concerned about both the timing and the decision to charge the Finance Minister, Pravin Gordhan and two former senior SARS employees with fraud.
Our country is experiencing a period of profound upheaval. With another rating agency review ongoing, the Medium Term Budget Policy Statement ( MTBPS) weeks away, serious social protest and violence occurring at our universities, and a number of contentious disputes between state institutions playing out in public, this decision could not have come at a worse time.
We understand that the charges relate to decisions made six years ago, regarding approving the early retirement, with full pension benefits, of the then deputy SARS Commissioner and his subsequent reappointment several months later.
It is important to note that the charges suggest no improper benefit on the part of the Minister. What is in question is the Minister's interpretation of sections of both the Public Service Administration (PSA) and Public Finance Management Act (PFMA) legislations.
No-one is above the law and it is not our intent to second guess the country’s Director of Public Prosecutions. Nonetheless, the nature of these charges and how they have been pursued creates a strong perception that our prosecutorial institutions are being used for political ends.
In the current context, this cannot but be to our detriment as a country and is sure to hold us back as we seek to build an economy that addresses the triple headed Hydra of poverty, unemployment and inequality.
We call upon the executive arm of our government through the cabinet to swiftly and emphatically affirm their support for the economic strategies and policies set out in Minister Gordhan's budget speech this year, and in the range of supportive actions spearheaded by him, in the interest of South Africa, together with business and labour.
In particular, we call upon the President to address the country and clearly spell out his government’s programme to reassure investors and rating agencies, including a clear plan to:
- Restore credibility in the governance and responsible financial management of Stated Owned Enterprises, especially South African Airways
- Ensure there is policy certainty in mining that restores investor confidence and provides transparency around enforcement of regulations
- Communicate directly with the country on the government’s approach to deal with the current university crisis, including a clear indication of the mandate, scope and timing of the recently appointed inter-ministerial task team
Saki Macozoma - President
Bobby Godsell - Chairman
Thero Setiloane - CEO
Statement issued by Brunswick South Africa on behalf of BLSA, 11 October 2016
