SOUTH AFRICAN ECONOMY DESTABILISED BY GORDHAN ROW

South Africa's Deputy Finance Minister Mcebisi Jonas (R)
and Finance Minister Pravin Gordhan arrive for a media
briefing in Pretoria in this December 14, 2015 file photo.

Johannesburg - A police investigation into South African Finance Minister Pravin Gordhan is destabilising the government and creating uncertainty across Africa's most industrialised economy, deputy finance minister Mcebisi Jonas said on Tuesday.

Gordhan declined last month to obey a police summons linked to the inquiry into whether he had used a tax service unit to spy on politicians including President Jacob Zuma. Gordhan said he had done nothing wrong and his supporters have called the investigation a witch hunt.

South Africa's rand has weakened around 3 percent since the news of an investigation into Gordhan emerged.

"It does destabilise, not only Treasury, it creates uncertainties across the economy," Jonas told 702 Talk Radio.

"We feel confident there is no basis for the allegation. We are not worried about that."

Jonas said he had met Public Protector Thuli Madonsela, an anti-corruption watchdog, as part of her inquiry into whether wealthy friends of Zuma, the Gupta family, have been influencing high-level political appointments.

Jonas earlier this year shook financial markets when he said the Guptas had offered him his boss's job.

Zuma has said that the Guptas are his friends, but denied doing anything improper. The Guptas have also denied making job offers to anyone in government.

Reuters