Gordhan and Jonas ‘on their way out’
• Just a question of who will take over, say sources • Reshuffle likely to affect more ministers
Finance Minister Pravin Gordhan and his deputy Mcebisi Jonas are on their way out of President Jacob Zuma’s Cabinet, Business Day has reliably learnt. The only questions remaining are: who will replace them and when will they be axed?
It is unlikely to take place ahead of Ahmed Kathrada’s funeral though, as many ministers are expected to attend.
The political fight around the Treasury reached a tipping point this week after Zuma recalled the South African delegation from an investor road show in the UK and the US.
The removal of the two is expected to have far-reaching consequences, politically and economically. The rand plummeted about 52c against the dollar on Monday and remained weaker in late afternoon trade on Tuesday as the cloud of a reshuffle hung heavy.
It is expected the reshuffle will see several ministers changing portfolios.
Court argument in the explosive High Court in Pretoria application, launched by Gordhan in 2016, asking the court for a declaratory order barring him from intervening in the relationship between the Guptas — Zuma’s friends and family benefactors — and the banks, also kicked off on Tuesday.
The family’s banking woes are said to be a key aspect of the move against Gordhan. The country’s major banks closed the Guptas’ accounts in 2016 and it is rumoured the Bank of Baroda is about to follow suit by the end of March. Oakbay confirmed on Tuesday that the bank “has provided no indication” that it planned to close the family’s accounts to date.
In a similar development, Gupta associate Hamza Farooqui’s Vardospan Limited, filed a notice of motion in the high court on Monday in an attempt to push the Reserve Bank into making a determination on its application to purchase the Habib Bank within 24 hours of the application set to take place on Thursday. Gordhan needs to approve the acquisition as finance minister.
On Tuesday, rumours swirled about Gordhan having resigned after some prompting by the ANC’s top brass — but according to sources close to the minister, he has not done so nor does he have any intention of doing so. Gordhan told journalists at the High Court in Pretoria on Tuesday, after a meeting with ANC secretary-general Gwede Mantashe at Luthuli House, that he remained finance minister.
“I am still the finance minister, that’s why I am here [at court] to listen to how the application is going,” he said. Gordhan said he would continue to serve at the pleasure of the president.
According to sources, it was confirmed at the meeting with Mantashe on Tuesday that Gordhan and Jonas would be removed from their posts. The minister was also informed that the ANC’s officials — who were briefed about the move on Monday — respected the president’s prerogative to appoint and dismiss ministers. They were, however, concerned about the effect of the move and also about the potential effect of appointing former Eskom boss and newly introduced ANC MP Brian Molefe as a replacement.
Mantashe on Tuesday denied this, saying he had met Gordhan in an attempt to understand the “recall” back home from the investment road show. “Yes, I understand now the dynamics involved … but they are not for public consumption,” he said.
Mantashe also declined to be drawn on whether the top six officials of the ANC were briefed by Zuma on his intent to reshuf- fle Cabinet. “Who are these people telling you this ... you know I have a problem with that.”
According to ANC insiders, who wished to remain anonymous, Gordhan’s removal could result in Cabinet resignations or even ANC MPs playing a role in a motion of no confidence against the president in Parliament.