In a new twist to the arms-deal saga, a senior government finance official has accused the Pan Africanist Congress of spreading corruption rumours and sinking the rand to a record low against the US dollar. 

Maria Ramos, director-general of the South African Treasury, made the allegation on Tuesday night in the wake of a PAC press conference earlier, where party officials threatened that "senior government members" would fall by the end of the week. However, they refused to name names, saying they had no "irrefutable proof". 

In a rare public intervention, the treasury - which plans and manages the government's finances and which normally declines to comment on day-to-day currency fluctuations - called the PAC's role in fuelling currency speculation "complete and utter madness". 

'Why don't they let the process unfold?’ 

The rand fell on Tuesday from R8,02 to R8,16 and closed at R8,13 by the end of trading, striking its record worst of 8,1575, recorded on April 5. 

Ramos said the Treasury's investigations had established that "on the back of the PAC story", a rumour had started in the world financial markets about the names the PAC had said it 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 the innuendos made at the PAC press briefing as "playing into the hands of a few currency speculators who wanted to make money". She said the rand's fall was "completely unnecessary". 

'We want certain media institutions to follow these things up' 

"These markets are looking for rumours to drive a currency one way or another," she said. "In a thin market - the slightest nonsensical rumour can move a currency."

Independent currency dealers gave other reasons, however, and said the dollar had firmed against most other major currencies. 

At its press conference 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. The PAC's briefing was attended by a wide range of media representatives, diplomats and members of Armscor. 

The PAC's secretary-general, Thami ka Plaatjie, disappointed them however, when he announced that the party had received legal advice not to release the names. "We will be releasing these names on an instalment basis every week. We do not have the capacity to investigate, to follow things up. "We want certain media institutions to follow these things up and bring them to the public," said Ka Plaatjie, adding that the PAC no longer trusted the official probe. 

He threatened that "before the end of this week, some very senior members of this government will fall". Asked how many names the PAC was in possession of, Ka Plaatjie said the list "does not exceed five". Party firebrand Patricia de Lille commented: "I don't know what she (Ramos) based her facts on. I don't know how it's possible (that the PAC's comment had led to the rand's decline). 

"But she is entitled to her comment." 

With acknowledgement to The Star and Independent Online.