Johannesburg - South African President Jacob Zuma told
senior leaders of the South African Communist Party that he plans to fire
Finance Minister Pravin Gordhan, according to three people with knowledge of
the matter. The rand plummeted.
Zuma told officials from the party, which is allied to
his ruling African National Congress, during a meeting on Monday in
Johannesburg, according to the people, who were present and asked not to be
identified because a public statement has not been made. Zuma, 74, ordered
Gordhan to cancel meetings with investors in the UK and the US and return home
on Monday, a day after he had flown to London to begin the week-long roadshow.
A later meeting of the top six leaders of the ANC was to
be held after the SACP gathering and it’s unclear of what happened in that
discussion. Zizi Kodwa, a spokesman for the ANC, said the people were
misinformed.
The rand weakened as much as 2.9 percent and was at
13.0043 to the dollar by 8:21 a.m. in Johannesburg.
Read also: Gordhan recall heightens fears of Cabinet reshuffle
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” that he says will tackle racial inequality and widespread
poverty.