Gordhan Arrest Reports Increase South Africa Downgrade Risk

Chances that South Africa’s debt will be cut to junk have increased as the political risk that rating companies have raised as concern rose amid renewed speculation Finance Minister Pravin Gordhan could be arrested and charged.

Gordhan, 67, said in a statement on Wednesday his attorneys received a letter from the Hawks, a special police unit, requesting that he present himself to the Hawks’ office on Thursday. He will not comply with the request and his lawyers advised him alleged charges against him are unfounded, Gordhan said. The Sunday Times newspaper wrote in May the finance minister may face dismissal and arrest on espionage charges for setting up a unit in the South African Revenue Service to spy on politicians including President Jacob Zuma, 74, when he headed the tax agency between 1999 and 2009.