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)