Ricochet News

FSB investigating if anyone benefited 'materially' from Gordhan's axing

Apr 11, 2017
FSB investigating if anyone benefited 'materially' from Gordhan's axing

The Financial Services Board (FSB) has confirmed it will investigate possible 'insider trading' linked to the firing of former Minister of Finance, Pravin Gordhan, following the cabinet reshuffle triggered by President Jacob Zuma.

"There is widespread concern there may have been 'insider trading', and there is some circumstantial evidence to suggest there was 'insider trading', which may have materially benefiting someone with prior knowledge of the former finance minister’s firing," said David Maynier MP - the Democratic Alliance's (DA) Shadow Minister of Finance.

"I, therefore, wrote to the FSB on 31 March 2017 requesting an investigation into possible 'insider trading' linked to the firing of the former finance minister.

"On 03 April 2017 Advocate Dube Tshidi, the Chief Executive Officer of the FSB, replied that he had instructed Head of Enforcement, Mr. Gerhard van Deventer, 'to look into the matter'."

The FSB’s enforcement division, which inter alia investigates alleged market abuse under the Financial Markets Act (No. 19 of 2012), will be responsible for the actual investigation, following a review of various trades being conducted by the Johannesburg Stock Exchange.

"We do not have all the facts, but we do know senior ANC alliance officials had prior knowledge of the former finance minister’s firing, immediately prior to the event.

"Whatever the case we welcome the fact that the FSB have launched the investigation because we have to get to the bottom of whether there was an 'insider trading' and whether anybody benefited materially from prior knowledge of the former finance minister’s firing," Maynier said.

National Day of Action

The news comes a day after opposition parties, including the DA, declared Wednesday a National Day of Action against President Zuma.

Besides other civic organisations, the National Day of Action is being organised by the African Christian Democratic Party (ACDP), the African Independent Congress (AIC), the African People's Convention (APC), Agang SA, the Congress of the People (COPE), the Democratic Alliance (DA), the Economic Freedom Fighters (EFF), Inkatha Freedom Party (IFP) and the United Democratic Movement (UDM).

President Zuma has come under fire for the axing of former Finance Minister, Pravin Gordhan, his Deputy, Mcebisi Jonas, and other Ministers about two weeks ago.

Thousands of people are expected to converge at Church Square in Pretoria, and begin a march that will end at the Union Buildings.

Thousands marched last week

On Friday, many residents took to the streets demanding that President Zuma resigns. Two major protests happened in Port Elizabeth and East London - with smaller ones taking place in towns like Qeenstown, under the banner of the Save South Africa movement.

Highlights from Port Elizabeth Save South Africa marches:

Highlights from East London Save South Africa marches: