Cape Town - Finance Minister Pravin Gordhan on Friday dismissed fraud charges laid against him this week as “frivolous” and said he would carry on with his job, including delivering an interim budget at the end of the month.
Speaking via video link to a Thomson Reuters investment conference in Cape Town, a steadfast Gordhan also said the economy was bottoming out and had every chance of expanding by more than 1 percent next year.
The fraud charges have fuelled suspicions of a political plot to oust the highly respected Gordhan, who has defied friends and allies of President Jacob Zuma in their quest for lucrative state contracts, analysts say.
Gordhan said his lawyers would be issuing a statement in that regard later on Friday.
Despite the charges, Zuma has continued to express his support for Gordhan.
Gordhan characterised the charges as “political mischief” and said he would continue his work in trying to convince ratings agencies not to downgrade South Africa to sub-investment grade at the beginning of December.
The charges caused fresh turmoil in South Africa's financial markets this week, sending the rand more than 3 percent lower on Tuesday.
However, the currency recovered some of those losses the next day when the National Prosecuting Authority said he might be open to reviewing the charges if asked.
On Friday the rand reversed early losses against the dollar after Gordhan statements, lifting some of the gloom that has weighed on the currency.
By 1055 GMT the rand had firmed 0.5 percent to 14.2000 per dollar from an overnight close of 14.25000, with analysts noting that Gordhan's comments and overall improvement of global risk had helped lift the unit.
Reuters