The row about the R43-billion arms deal exacted a heavy toll as the rand was punished after new allegations by the Pan Africanist Congress about the role of unnamed senior politicians. 

The treasury took the unprecedented step of lashing out at the PAC, saying its role in fuelling currency speculation was "complete and utter madness". 

The crisis of confidence was further compounded by news on Tuesday that African National Congress chief whip Tony Yengeni had again failed to comply with parliament's request for information on the ownership of his Mercedes 4x4, provoking condemnation from opposition MPs. 

The treasury, which plans and manages the government's finances and which normally declines to comment on day-to-day currency fluctuations, expressed dismay that the PAC's "unsubstantiated rumours" on the arms deal had effectively driven down the rand and probably enriched speculators.

 Rand has fallen from R8,02 to R8,16, settling at R8,13 

The rand fell on Tuesday from R8,02 to R8,16 and closed at R8,13. Treasury Director-General Maria Ramos said last night that their investigations had established that "on the back of the PAC story", a rumour had started in world financial markets about names the PAC would release. 

"It is complete and utter madness that a rumour could drive down the rand to R8,16 on the basis of a something that they are absolutely unable to substantiate. Why don't they let the process unfold and the investigators do their job?" 

Ramos condemned remarks at a PAC press briefing on Tuesday as "playing into the hands of a few currency speculators who wanted to make money". "These markets are looking for rumours to drive currency one way or another," she said. "In a thin market... the slightest nonsensical rumour can move a currency." 

'The slightest nonsensical rumour can move a currency' 

At its news conference on Tuesday, the PAC said it had taken the slide of the rand into consideration when deciding not to go public with the names of "senior government officials" it claims benefited from the arms deal. Party officials insisted, however, that a senior ANC MP and senior government officials were involved in irregularities around the arms deal. 

"Before the end of this week some very senior members of this government will fall," said PAC secretary-general Thami ka Plaatjie at a news conference in Pretoria on Tuesday. 

He said the party had passed the names of senior government officials allegedly involved in irregularities to selected media organisations and independent investigators. 

At the party's congress in Bloemfontein at the weekend, PAC chief whip Patricia de Lille said the name of a senior ANC MP linked to irregularities in the arms deal would be announced shortly. The nation "would be shocked" when the PAC made the announcement. 

This apparent revelation had been widely anticipated at the news conference on Tuesday, but De Lille and her two fellow MPs were not present.

 Plaatjie said the party had a list of names and information about what these officials had allegedly done, but some of the information needed to be corroborated. The party did not have that capacity. Asked how long the list was, Plaatjie said: "The names may not exceed five." 

Yengeni, meanwhile, again failed to respond to a deadline from parliament's ethics committee to provide information on the acquisition of his luxury car. He has been given until Thursday this week to respond. 

Democratic Alliance chief whip Douglas Gibson said Yengeni, as chief whip, should be setting an example for other MPs. Instead, he was showing contempt for parliament. 

In his first response to the committee, Yengeni questioned the committee's procedures, instead of responding to questions about his vehicle. He was essentially told that this was not good enough and given until last Thursday to respond to the questions 

Yengeni has asked for another extension, since he is out of town, and has been given until Thursday. 

Gibson said that the granting of a further extension to Yengeni for the furnishing of a declaration was "amazing". The flexibility shown by the committee chairperson, Sister Bernard Ncube, towards an important ANC figure created an "unfortunate precedent". 

With acknowledgment to The Argus.