Iraj Abedian, executive chairman at Pan-African Capital Holdings says it is deeply problematic that the case against Finance Minister Pravin Gordhan has played out in public and was not treated sensitively as one of national interest.
Within just a few hours the Rand lost three percent of its value against the US Dollar following news that Gordhan had been served with summons by the NPA (National Prosecuting Authority) to appear in court on fraud charges for his involvement in the pay-out made by South African Revenue Service (Sars) to Ivan Pillay when he took early retirement.
He says from the rule of law point of view, it's good to know the NPA can go after high profile individuals in the country. However, the way its played out hurts the economy because the markets are already reacting badly to the news, he said.
It's even more problematic that the NPA staged a national drama of its own, briefing the nation and talking about the case against the Minister. At the end of it, it's not about an organised crime but something that could've been managed carefully with respect to national interest.— Iraj Abedian, Executive Chairman at Pan-African Capital Holdings
Abedian also spoke about the financial implications this case has on the citizens of this country and likened the situation to what happened in Greece where investors could not get back the money they have invested.
Listen to the full conversation below: