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Gordhan's finance job safe after Hawks answers - analyst

Cape Town - Finance Minister Pravin Gordhan's job should not be in jeopardy after answering the questions sent by the Hawks, political analyst Daniel Silke told Fin24 on Wednesday.

BREAKING: Gordhan responds to Hawks questions

This follows Gordhan's statement on Wednesday, in which he revealed the answers he supplied to the Hawks regarding the alleged SA Revenue Services (Sars) “rogue” unit.

Silke said that if the Hawks are on a real "witch-hunt", they may decide to take the matter further.

"Ultimately, Gordhan has provided a comprehensive answer to the questions reinforced with legal opinion," he said. "This now effectively throws the ball back in the Hawks' court."

"Assuming the Hawks are on a real 'witch-hunt', they may decide to take the matter further," he said.

"If the legal opinion from Gordhan looks air-tight, perhaps an accommodation of sorts can be reached between the two parties," he added. "Based on Gordhan's response, he certainly does not look more vulnerable in his position to continue as finance minister.

FULL STATEMENT: Gordhan responds to Hawks

Gordhan's answers were just another step along the road of the battle, according to emerging markets economist Peter Montalto of Nomura on Wednesday.

"It doesn't appear there is much new information here and that this is just another step along the road of the battle with Hawks," Montalto said. "We really need to wait and see what the next step is from the Hawks to the responses Gordhan has given."

"I wouldn't say this is a victory for either side yet," Montalto said.

Montalto said the statement confirms that:

1) The battle is still on
2) Gordhan is still waging the Sars conflict in public at every step
3) There is no influence on the ANC National Executive Council, which is all that matters
4) The real battles on Sars leadership, SAA, Eskom and nuclear are all still to come

Gordhan told the Hawks that the unit acted lawfully as far as he is aware.

“I am advised that the Sikhakhane Panel finding that the establishment of the Unit contravened the National Strategic Intelligence Act was wrong and based on a superficial and clearly mistaken reading of the aforementioned Act,” he said in a statement on Wednesday.

READ: The 27 questions the Hawks sent to Gordhan

“The unit was an essential part of Sars’ enforcement strategy as it is with most tax and customs administrations globally.

“As far as I was aware, the unit lawfully performed its functions.

“As far as I was aware, the funding of the unit was done through normal budgetary processes applicable to Sars."

"In respect of the legality of the investigation unit established during my time as commissioner of the South African Revenue Service, I believed that the unit was lawfully established to perform very important functions for and on behalf of Sars.

“The unit did not initially have a name but was later successively known as the Special Projects Unit, the National Research Group and the High-Risk Investigations Unit.

“I participated in the decision to establish the Unit in February 2007.”

Gordhan said his legal advice was that he was not obliged, under any law, to answer the questions sent to him by the Hawks.

"I believe it is in the public interest that I provide them with information I have at hand," he said. "Be that as it may, as a law abiding citizen I have decided to co-operate fully."


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