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Rand will 'buckle' if Gordhan is charged - Goldman Sachs

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Johannesburg - South Africa’s credit rating would be cut and the rand would “buckle” if Finance Minister Pravin Gordhan were to be removed from his post, according to Goldman Sachs.

The currency has slumped 6.2% since August 23, when a news website reported that the Hawks police unit had summoned Gordhan in connection with an investigation into alleged irregularities at the tax-collection authority, which he headed from 1998 to 2009.

Gordhan has refused to report to police, saying he had done nothing wrong. Opposition parties and some independent analysts have accused President Jacob Zuma, 74, of trying to gain greater control of the National Treasury. He has denied the allegation.

“The underlying issue is what is the political agenda driving this attack on the minister,” Colin Coleman, partner and head of Goldman Sachs Group said in an interview with Bloomberg TV on Monday.

A looming downgrade?

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