Johannesburg - South African President Jacob Zuma ordered
Finance Minister Pravin Gordhan to abort a week-long roadshow meeting with
investors and rating companies in London and the US, heightening concern that
he’s preparing a cabinet reshuffle.
“President Jacob Zuma has instructed the Minister of
Finance, Mr Pravin Gordhan, and Deputy Minister Mcebisi Jonas to cancel the
international investment promotion roadshow to the United Kingdom and the
United States and return to South Africa immediately,” presidential spokesman
Bongani Ngqulunga said Monday in a statement. The presidency gave no reason for
recalling Gordhan and Jonas.
Gordhan, who left South Africa on Sunday to lead a
delegation that includes business executives and labor union representatives,
said by phone earlier that he was carrying on with his plans to meet investors
in London. The minister and the rest of the group started meeting investors in
the UK on Monday, Jabu Mabuza, President of Business Unity South Africa
President and chairman of Telkom and part of the delegation, said
by phone from London.
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Speculation that Gordhan is on the verge of being fired
has swirled for months, as he clashed with Zuma over the management of
state companies and the national tax agency. While Gordhan has led efforts to
keep spending in check and fend off a junk credit rating, Zuma wants to embark
on “radical economic transformation” to tackle racial inequality and widespread
poverty.
‘Live-wire situation’
“Whether this is a reshuffle or not, the timing is
definitely picked to inflict pain and embarrassment on an already live-wire
situation,” George Herman, chief investment officer at Citadel Investment
Services in Cape Town, said by phone. “There is no other practical reasoning
for the timing of this.”
The rand weakened as much as 1.9 percent against the
dollar and was 1.2 percent weaker at 12.5852 at 12:10 p.m. in Johannesburg.
“It’s quite a radical step to recall the minister and his
deputy in the middle of an international roadshow,” Mike Davies, the founder of
political advisory company Kigoda Consulting said by phone. “This doesn’t
necessarily mean a reshuffle is now imminent than it was before, but it shows
that tensions clearly exist in the cabinet.”
Treasury spokeswoman Yolisa Tyantsi referred queries to
the Presidency when contacted by text message and email.