South Africa prosecutor says probe on minister’s role advances

South Africa’s main prosecutor said on Friday that investigations into Finance Minister Pravin Gordhan’s role in setting up a surveillance unit at the tax department that allegedly spied on politicians were at an advanced stage.

The rand eased briefly against the dollar, moving to 0.76 per cent down on the day, 0.61 per cent lower amid concerns the outcome of the probe could shake financial markets.

"I’ve been informed that investigations are at an advanced stage,” National Prosecuting Authority Head, Shaun Abrahams told a parliament.

Abrahams dropped fraud charges on Monday against Gordhan, executing a U-turn in a case that had rattled markets and drawn accusations of political meddling.

He confirmed that Gordhan was still being investigated for his role in setting up the surveillance unit at the tax department a decade ago when he headed the revenue service.

Gordhan was first questioned about this in February by the police but in August ignored a follow-up summons, saying he had done nothing wrong.

Investors and credit rating agencies backed Gordhan’s plans to rein in government spending in an economy that has been forecast by the central bank to grow only slightly this year.

Asked if the probe on the surveillance unit would be handled in the same manner as the fraud investigation on Gordhan, Abrahams said “Of course we will ensure that the same thing doesn’t happen in this particular matter.