Johannesburg - Business leaders have roundly come out in support of the National Prosecuting Authority’s decision not to pursue fraud charges against Finance Minister Pravin Gordhan.
However, the leaders still plan to converge in Pretoria to stand up for democracy, they say.
NPA head, advocate Shaun Abrahams, on Monday told reporters that Gordhan did not act with criminal intentions when he approved former senior South African Revenue Service official Ivan Pillay’s early retirement.
In response to the news, the rand reached its strongest level in five weeks, gaining more than 2 percent to reach a high of R13.52 against the dollar. Investors also responded positively, with the six-member bank index rising to 5.1 percent, the biggest jump since March 17 and the highest level since August 24.
In a statement, Business Unity SA, Business Leadership South Africa, CEOs who have signed a pledge in support of the finance minister, as well as civil society organisations Freedom Under Law and the Helen Suzman Foundation, welcomed the move.
Read also: Markets buoyed by Gordhan decision
The CEO Initiative was launched towards the end of last year to work with government in a bid to stave off a ratings downgrade and its pledge has been signed by about 100 captains of industry. SA’s sovereign rating will be reviewed again in December, which could see S&P and Fitch drop the country to junk status. Moody’s has SA two notches above junk.
In a joint statement, CEOs who signed the Initiative pledge, BUSA and BLSA say they welcome the NPA’s decision to withdraw charges against Gordhan, Pillay and former SARS commissioner Oupa Magashula.
“We stand for the rule of law and against the charges to prosecute the minister of finance, as we maintain that these charges were without factual or legal foundation and were manifestly not in the public interest. The decision by the National Prosecuting Authority to withdraw these charges validates our view.”
Read also: NPA drops charges against Gordhan
Echoing this view is a statement from Freedom Under Law and the Helen Suzman Foundation, which adds “no competent prosecutor, at any level of the prosecuting authority, would have brought them”.
The business organisations add, given what was at stake - the impact on our currency and broader markets, and the national interest impact - the events surrounding these charges are of profound concern.
“The independence and stability of our state institutions are an inviolable bedrock of both our social compact and the functioning of our economy. It is our collective duty and paramount responsibility as citizens and all sectors of society to unite to protect these institutions. And it is core to our fight to maintain our investment grade rating.”
However, business leaders and labour will still convene in Pretoria on Wednesday - when Gordhan was meant to appear in court on fraud charges - to “express what we stand for and what binds us together; namely the belief in our constitution and a future for our society that it envisages”.
“South Africa, time and time again, is demonstrating resilience and maturity in the face of attacks on our democracy. Our sophisticated economy and hard-fought-for democracy are a gift that all South Africans will protect to the last.”
IOL