Now Duduzane Zuma joins the war against Gordhan

Yesterday’s extraordinary attack by close Gupta associate Duduzane Zuma on former Finance Minister Pravin Gordhan has been widely seen as a desperate move as state capture allegations make it increasingly difficult for the controversial family to do business in SA, writes Legalbrief. With his bank accounts closed, President Jacob Zuma’s son Duduzane has in an open letter blamed former Finance Minister Pravin Gordhan for his banking woes and those of his business partners, the Guptas, according to a Business Day report. It notes Duduzane said in the angry letter, in which he proclaimed that he could no longer remain silent, that all his bank accounts had been shut and accused Gordhan of using constitutional structures such as the Financial Intelligence Centre and the SA Reserve Bank ‘to destroy’ him and ‘his business colleagues’.

The letter was sent from the same e-mail address contained in a tranche of leaked e-mails between members of the Gupta family and their associates, notes a BusinessLIVE report. Duduzane is a business partner of the Gupta family through Mabengela Investments, which held a 28.5% stake in Tegeta Exploration and Resources. The Guptas last week announced the sale of Tegeta to a Swiss-based firm for R2.97bn. They also sold their media assets, The New Age newspaper and broadcasting channel ANN7 to Mzwanele Manyi. The sale of assets by the family was linked to the closure of their accounts by the banks.

Duduzane inadvertently provided further evidence that the pressure was mounting on the Guptas‚ whose remaining bank accounts are expected to be closed at the end of August, notes a TimesLIVE report. He and President Jacob Zuma’s elder son‚ Edward‚ in the space of days have launched an assault on Gordhan‚ who they blame for their woes. The report says it is unclear in what capacity Duduzane wrote to Gordhan – although it appeared that he penned the letter as an associate of the Gupta family and not as an ANC member or son of the President. Duduzane in the open letter to Gordhan said he was selling his shares in Gupta-linked companies so that he could focus his time on ‘clearing his name’. ‘All of my bank accounts have been closed by your ‘’friends’’ in the banking industry. Likely with your support. Anybody can see that you are in bed with them‚ rather than on the side of hard-working South African citizens‚’ Duduzane wrote. He has not ruled out pursuing legal action against Gordhan for the ‘harm you are causing’.

Gordhan said yesterday he has referred the open letter to his lawyers. A TimesLIVE report says Dududzane‚ who has featured prominently in the leaked Gupta e-mails‚ and in the Public Protector’s State of Capture report‚ accused Gordhan of using state bodies to try to destroy Zuma and his businesses colleagues with no proof of misconduct. Gordhan said that as Duduzane said in his open letter that he reserved his rights to pursue legal action for the harm Gordhan was doing‚ Gordhan decided to refer the matter to his lawyers.

Duduzane should go to court instead of threatening legal action against Gordhan, political analyst Shadrack Gutto says, notes a TimesLIVE report. Gutto said Gordhan only stated facts that he knew as a Finance Minister. ‘(He stated) things which if the Zumas go to court will be established whether they were true or not. He indicated that there was a lot of interference‚ bending of rules‚ bribing‚ money laundering‚ privileging the Zuma family in some of the businesses that were being done. I think it will be wonderful or very informative if this matter goes to court. Each side will be able to present evidence….Whatever the court decides‚ it will help us put some light into a situation which looks clumsy and clouded in accusations and counter accusations.’

The Save SA campaign described the open letter as a ‘bizarre attempt to deflect attention away from the increasing evidence against him and his cronies of their central role in state capture and corruption’. A TimesLIVE report notes Save SA said the letter ‘does nothing but confirm how embedded he is in the state capture project’. ‘Rather than explain his role in this‚ he resorts to intimidation‚ incitement and hate speech‚ in a style that is increasingly becoming the trademark of the Zuma family. Zuma Junior should not be writing open letters at this time – he should be writing affidavits…‚’ the organisation said. Casac executive secretary Lawson Naidoo said Duduzane ignored the fact that it was President Zuma who appointed Gordhan as Finance Minister because he trusted him. ‘He seems to be unaware of collective Cabinet responsibility. To single out one person to be responsible for the country’s economic performance is irresponsible‚’ Naidoo said. He said there was no evidence that Gordhan was persecuting Duduzane by closing his bank accounts. According to research by TimesLIVE‚ it appears Duduzane has been a director of 21 companies‚ many which also had the Guptas as directors‚ but that he has resigned from most positions. However‚ it appears he is still director of seven companies – all of which appear to have stopped trading. He may no longer be a director of any companies but he could still have shares in Gupta-owned companies.

Gordhan has been one of the strongest critics of the Gupta family and their associates, notes a Daily Maverick report which says it is widely believed the President removed Gordhan as Finance Minister and his former deputy Mcebisi Jonas because they stood up against the Gupta family’s attempts to loot the state. Both Jonas and Gordhan have continued to speak out against corruption since their removal. According to the report, Wits School of Governance Professor Susan Booysen said Duduzane’s letter looked like a desperate attempt to reinterpret issues to make himself and the Guptas appear to be much more important than they are. She said it looked like ‘a big time’ effort from some of the President’s family members to fight back against the claims against them.