From Rand Daily Mail. Story by Stephan Hofstatter, Sabelo Skiti, Thanduxolo Jika and Qaanita Hunter.

South Africa flirted with the prospect of economic meltdown this week as President Jacob Zuma’s allies moved to neutralize Finance Minister Pravin Gordhan.

Gordhan said he is prepared to die to save the country from thieves and would never back down from fighting corruption.

The embattled finance minister told hundreds of South African Treasury staff members he was aware of speculation over a cabinet reshuffle.

“He said ministers come and go and we must just commit to work with whoever is the minister of finance,” said a treasury employee who was at a staff meeting with Gordhan in Pretoria on Friday.

“He said this is part of a bigger political battle. Don’t be surprised if me and the deputy minister (Mcebisi Jonas) are removed this weekend,” another source said.

Gordhan has been working to avoid a ratings downgrade, possibly to junk status, which could see the rand plummet to 30 rand to the U.S. dollar.

Gordhan’s remarks, made a day after his refusal to appear before the Hawks to give a warning statement, come amid a growing groundswell of support for the minister – and a growing lobby of opposition against Zuma, who has come under increasing fire for poor leadership and perceived abuse of power.

The Hawks are a crime investigation units within the South African police service.

Gordhan’s standoff with the Hawks is seen as a proxy war between the presidency and Treasury over control of the national fiscus, something Zuma’s office denies.

Gordhan said he would not back down from investigating irregular state contracts – even if he was fired.

“He said he will face whatever consequences that may come even if it means dying for saving the country from the thieves,” said one source.

They Gordhan made it clear he was being persecuted for doing his job by investigating contracts with companies owned by the Gupta family, who have been accused of having undue influence over President Jacob Zuma.

Staff who attended the meeting said Treasury lawyers were “turning up the heat” on state contracts with Gupta companies.

These include a contract the Gupta-owned coal company, Tegeta, has with Eskom; a partnership between the Gupta-linked arms company VR Laser Asia and state weapons maker Denel and lucrative deals that another Gupta-linked company, Trillian, enjoys with Transnet.

This week Gordhan refused to appear at the Hawks offices to make a warning statement.
A warning statement is often the precursor to a suspect being charged criminally.

A source close to Treasury who is not sympathetic to Gordhan said, “These guys are gunning for Pravin big time – he’s made lots of enemies. There is war on in the ANC. There are factions in the ANC. It’s a collaboration of convenience. It’s about self-preservation.”

He said he believes the ANC will bring Gordhan before the party’s integrity committee after he has been charged as a precursor to removing him from his post.

The Gupta family expressed “deep disappointment” about the “alleged comments by Finance Minister Gordhan to his Treasury staff.” It said the Guptas were victims “of a political campaign.

“We repeat to our detractors – if you have evidence against us, please bring it. Otherwise, please leave us alone. We have no interest in politics. Only business.”

Gordhan said he has no legal obligation to present himself to the Hawks.

This week the Guptas threatened to stop the Treasury from releasing a report on an investigation into Eskom coal contracts with Tegeta Exploration and Resources, a Gupta-owned mine. The report shows how the power utility bent over backwards to accommodate Tegeta, ignoring shortcomings in Tegeta’s bid and giving them the 10-year, R400-million-a -year coal supply deal.

Growing frustration with Zuma was clear at former minister Makhenkesi Stofile’s funeral at Fort Hare University in Alice this week. ANC figures attended including Trevor Manuel and Kgalema Motlanthe.

Speaker after speaker assumed an anti-Zuma posture. Former foreign affairs director-general Sipho Pityana told Zuma to quit because he had failed to lead. Deputy President Cyril Ramaphosa spoke out against the ongoing standoff between the Hawks and Gordhan. Ramaphosa said this was a sign of a “government at war with itself.”

The political standoff between Zuma and Gordhan raised Chinese concerns.
This week Ramaphosa met with officials from the Chinese Communist Party, who expressed concern about the political and economic instability in South Africa.

Chinese investors are worried about the billions of rands invested in the South Africa and what a downturn in the economy would mean,.

On Friday evening, international consulting firm Ernst & Young called a meeting of ANC top brass to discuss the state of the economy.

ANC treasurer general Zweli Mkhize was called to the meeting in Sandton alongside economic development minister Ebrahim Patel.

Read more at Rand Daily Mail.