Zuma tells Communist Party Gordhan is out

Finance Minister Pravin Gordhan - under pressure again.

Finance Minister Pravin Gordhan - under pressure again.

Published Mar 28, 2017

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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.

BLOOMBERG

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