Gordhan says 'let's wait and see' on sacking

Finance Minister Pravin Gordhan.

Finance Minister Pravin Gordhan.

Published Mar 28, 2017

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Johannesburg - Finance Minister

Pravin Gordhan flew back into South Africa on Tuesday, obeying

an abrupt recall from President Jacob Zuma, and said "let's wait

and see" when asked about reports that he was about to be

sacked.

The rand fell sharply after Zuma ordered Gordhan's immediate

return from a trip to Britain on Monday, rattling investors who

see the minister as a focus of stability in Africa's most

developed economy. The currency trimmed its losses to trade 1.9

percent lower at 12.98 per dollar after Gordhan landed.

"The president is my boss so if he asks us to come back, we

come back," Gordhan said.

"There are many in government who want to do the right thing

and make sure we keep our economy on track and keep our

development moving in the right direction," he added without

elaborating.

Zuma's order cut short Gordhan's investor roadshow in

Britain and the United States, triggering jitters that a

long-running power struggle between the two men was coming to a

head.

Talk Radio 702 said Gordhan's dismissal had been discussed

at talks between Zuma and the South African Communist Party,

allies of the ruling African National Congress, on Monday.

"There is a lot of rumours about the future of the finance

minister, they are still unsubstantiated at this time, it's not

set in stone," a Treasury One currency dealer, Andre Botha, said

regarding the rand's volatility.

"I think the market is pulling back just on the fact that

nothing was said about the rumours since then. I think people

are sort of relaxing a bit."

Gupta case

Gordhan returned as a court hearing over the closure of

accounts belonging to friends of the president, the Gupta

brothers, started. The case has been a particular bone of

contention between Zuma and his finance minister.

Zuma has come under mounting political pressure since South

Africa's anti-graft watchdog called last year for a judge to

investigate allegations of influence peddling in his government,

in particular allegations that brothers Ajay, Atul and Rajesh

Gupta wielded undue influence over the president.

Zuma has said the Guptas are his friends, but denies there

is anything improper about the relationship and the brothers

have denied any wrong-doing.

Gordhan has said the Guptas have repeatedly asked him to

intervene to reverse a decision by major banks to close some of

the business accounts of the brothers' Oakbay Investments.

In December, Gordhan asked the High Court to rule he was not

allowed to interfere in the banks' decisions.

Read also:  Zuma tells Communist Party Gordhan is out 

The state attorney said Zuma had applied to be represented

in the case as an interested party, but the court rejected his

application.

Gordhan first served as finance minister from 2009 to 2014

and was reappointed by Zuma in December 2015 to calm markets

spooked by the president's decision to replace respected finance

minister Nhlanhla Nene with a little-known politician.

But South African media reports suggest Zuma and Gordhan

have an uneasy relationship, though the president has denied

suggestions he is "at war" with his finance minister.

Separately, Zuma said on Tuesday he was not considering

setting up a commission of inquiry into the banking sector in

written answers to parliament.

($1 = 12.7595 rand)

(Additional reporting by Olivia Kumwenda-Mtambo, Olwethu Boso,

TJ Strydom and Wendell Roelf in Cape Town; Writing by James

Macharia; Editing by Andrew Heavens)

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