Kganyago: SA under threat of credit rating downgrades

The central bank governor says the country's political risk is reflected in the weaker exchange rate.

FILE: Reserve Bank governor Lesetja Kganyago. Picture: AFP.

JOHANNESBURG - South African Reserve Bank Governor Lesetja Kganyago says the country is under threat of a credit rating downgrade.

Kganyago is delivering the keynote address at the Sacci annual convention in Kempton Park, east of Johannesburg this morning.

He says South Africa's political risk is reflected in the weaker exchange rate.

Fears are mounting that South Africa's credit rating may be downgraded after Finance Minister Pravin Gordhan was recently served with a summons to appear in court on charges of fraud.

The charges relate to the pay-out made by Sars to its former deputy commissioner Ivan Pillay when he took early retirement.

Gordhan has said he will not make representations to the National Prosecuting Authority for the charges to be reviewed.

Abrahams had invited Gordhan to make the submissions, after meeting with lawyers for Pillay and Oupa Magashula.

In a letter to Abrahams, Gordhan's lawyers said they will not make representations to him for the reasons previously stated.

Gordhan's lawyer Tebogo Malatji said, "What we are saying is, 'Allow us to make representation prior to a decision', and we articulated our reasons for that. So it can't be that they were not aware of the fact that we contend that that opportunity was supposed to be afforded to us before the decision was firstly taken, and secondly grandstandly (sic) announced."