Gordhan given deadline by police in spy unit case-report

March 13, 2016 12:41 PM

Police are investigating the spy unit at the South African Revenue Service (SARS) for conducting illegal surveillance on taxpayers. Gordhan headed SARS when the unit was set up but has said he has no case to answer.

South Africa's Finance Minister Pravin Gordhan delivers his 2016 budget address to the parliament in Cape Town, February 24, 2016. REUTERS/Mike Hutchings

South African Finance Minister Pravin Gordhan has been given until Monday to answer questions posed by a special police unit on his role in setting up a spy unit at the revenue service, a local newspaper reported on Sunday.

A spokesman for South Africa's Directorate For Priority Crime Investigation, known as "the Hawks", confirmed that a letter had been sent to the minister's lawyers but declined to disclose its contents.

"We are not going to discuss these matters through the media," Hangwani Mulaudzi said.

The Sunday Independent said the letter to Gordhan's lawyers instructed the minister to answer the questions by 1600 local time (1400 GMT) on Monday.

The Treasury declined to comment, but Gordhan is scheduled to have a press briefing on Monday at 1200 GMT with business and labour leaders who recently accompanied him on an investor road show to London and the United States.

In late February, South Africa's rand currency shed nearly four percent in one day after Gordhan said there were attempts to discredit him and the integrity of the Treasury through the probe.

Gordhan's lawyers said in early March that he missed a previous deadline to respond to the questions because he was busy preparing the country's budget and would respond to the police questions at a later date.

The public spat has unnerved investor confidence in Africa's most advanced economy, which could lose its investment-grade rating by mid-year, potentially raising borrowing costs for government and firms alike.