BMI doubts Pravin Gordhan fraud charge will derail medium-term budget
Fraud charges against Finance Minister Pravin Gordhan are unlikely to derail the tabling of the medium-term budget policy statement on October 26, BMI Research says. The 2016 medium-term budget statement is important as rating agencies may downgrade SA if it shows a deviation from fiscal consolidation or if programmes aimed at growing the economy are not implemented. "We do not see the (fraud) charges as an immediate threat to the Treasury’s ability to prepare the mid-term budget. However, the timing of the summons … does hint at some political manoeuvring in an attempt to undermine his (Gordhan’s) authority," the research group — a Fitch Group company — said on Thursday. Deteriorating fiscal dynamics in the event of a political decision to raise spending could be enough for rating agencies to downgrade SA, BMI Research says. Fitch and S&P Global Ratings will review SA’s ratings in two months’ time. Gordhan and two former South African Revenue Service (SARS) executives have been cal...
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