ABSIP's open letter to S.A President Jacob Zuma on Finance Minister

PUBLISHED: Thu, 25 Aug 2016 17:27:26 GMT

Dear Mr Zuma

Further to the events of December 2015, which resulted in considerable damage to the South African economy and markets, as the Association of Black Securities and Investment Professionals (ABSIP) we were pleased with progress made to restore confidence in South African economy.

The combined efforts of all stakeholders in South Africa has resulted in: 

  • South Africa avoiding a further ratings downgrade in June
  • A credible budget delivered earlier this year by Minister Gordhan
  • Recovery in equity and debt markets
  • Recovery in the South African Rand versus major currencies
  • More robust engagements between government, business, labour and other stakeholders

This progress is now in serious jeopardy, it is with great concern that we note the latest developments around the Finance Minister of South Africa, Minister Pravin Gordhan and potential charges or possible arrest in relation the Minister’s former role as the Commissioner of SARS.

READ: Zuma says has confidence in S.Africa finance minister, can’t intervene

While we do acknowledge that due legal processes must be followed in the event that there is any evidence to support these allegations, we would like to call on government for this investigation to be done in a responsible way by a credible, legitimate and unbiased institution without any political or other agendas.  

READ:S.African opposition calls for parliamentary debate on FinMin “witch-hunt”

We note the letter of the Business Leadership South Africa and as ABSIP would like to support the call for this matter to be handled sensibly. We like to call for continued prudence and strengthening oversight over State Owned Enterprises (SOE), including the likes of SAA, to prevent further value destruction and for these SOE’s to act as catalyst to the economy.

We would plead with you, Mr President to please preserve the significant progress made since December to avoid further damage to the South African economy. We would again urge you to act responsibly in dealing with the matter to preserve the good progress made in restoring confidence into the South African economy.

Sign Up for Our Newsletter Daily Update
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.