Gordhan recall fuels axing rumours
DURBAN political stalwarts have expressed dismay at mounting speculation that Finance Minister Pravin Gordhan and his deputy Mcebisi Jonas are about to be axed from the cabinet.
Last September, a group of concerned citizens, among them struggle heroes, voiced public support for Gordhan. Among them were Judge Thumba Pillay and professor Jerry Coovadia.
Yesterday, Pillay said that if Gordhan were to be replaced, the country would suffer economically. “This would lead to the destabilisation of our economy. We will watch with interest to see who will be put in his place.”
Coovadia said he awaited more details with “a sense of trepidation”. “I didn’t think Zuma and his followers would go to this extent to get access to the Treasury. We are appalled.”
He said it was disturbing the lengths those in power would go to for “personal gains”. “The quest for justice and revolution that propelled them in the early years appears to be gone.”
Dr Ashok Chandika, convener of the Merebank Justice Network (to defend, protect and strengthen the SA constitution), said they were disturbed by the developments.
“Gordhan was overseas to bolster the economic situation. The trip was first authorised, then this authorisation was revoked. That makes the country look indecisive and foolish.”
The poor, he said, would bear the brunt of the change. “Many already live in difficult conditions. Some are unemployed. If there is a ratings downgrade because of perceived instability, prices will increase. This will affect the most vulnerable.”
He said that Gordhan, like Jonas, was one of the few cabinet members who acted with integrity.
“In fact, it is President Zuma who should be stepping down.”
Media co-ordinator for the Active Citizens Movement, Yashica Padia, said it was difficult to comment because the cabinet reshuffle had not been confirmed.
“If minister Gordhan were to be replaced, it would not be the best decision for South Africa. He and minister Jonas have been doing an excellent job.”
She said the sudden cancellation of the roadshow could damage South Africa’s international reputation. “This will have an impact on the economy and lead to even more instability.” The rand slumped 2% at the news that Gordhan had been recalled.
Last night, a well-placed source told The Mercury that at least six additional cabinet ministers and deputy ministers could follow Jonas and Gordhan through the exit door. The source appeared certain that this was “the end of the road for Gordhan and Jonas”.
“Zuma is confident,” the source said. “If he wields the axe in such a forthright manner, it can mean only one thing: that he is unchallenged in both the National Executive Committee and in the cabinet, and that he has sidelined people like Gwede Mantashe and Cyril Ramaphosa. Things have been going well for the president in run up to (the) national leadership elections for the ANC later this year: Nelson Mandela Bay was won by a pro-Zuma follower, Andile Lungisa (even though he was subsequently ordered to relinquish the post). Zuma has also received backing in eThekwini in KwaZulu-Natal.”
The source added: “Zuma only acts when he knows he will win, when he has everything in place. A cabinet reshuffle would be an indication that his opponents cannot touch him.”
The key question ahead of a potential reshuffle is who will replace Gordhan? It was said more than a year ago that ANC MP Sfiso Buthelezi would get the post, but nothing subsequently materialised.
Then the swearing in of former Eskom boss Brian Molefe as an ANC MP last month again fuelled speculation that Gordhan was on his way out. Wits University analyst Susan Booysen said Zuma had the full backing of the National Executive Committee and Cabinet on his actions. It appears too that his foot soldiers are working behind the scenes to sway the ANC caucus in Parliament to back him.
Dirk Kotze of Unisa said the recall of Gordhan was a show of force by the president.
He said Zuma was asserting his authority and showing everyone who was in charge. “This is a show of power.” He said the recall of Gordhan was taking the country back to December 2015 when Zuma fired then finance minister Nhlanhla Nene. The Banking Association of South Africa asked Zuma to act in the interests of the country. “Another potential outcome of this action could be a consideration by rating agencies to downgrade South Africa to sub-investment grade status. This would be very negative for banks and other corporates, whose ratings would follow the sovereign,” it said.
Other ministers who could face the chop include Minister of Tourism Derek Hanekom. Communications Minister Faith Muthambi was expected to be moved to another portfolio. Fikile Mbalula is expected to be promoted while Police Minister Nathi Nhleko could also be shifted to another portfolio.
Opposition parties yesterday slammed Zuma for his decision.
The DA and Cope said Zuma was reckless in his decision and did not have the interest of the economy at heart.
THE ANC Youth League in eThekwini Region has called for President Jacob Zuma’s decision to instruct finance Minister Pravin Gordhan to cancel his overseas trip to be respected.
ANCYL regional spokesman Thulisa Ndlela said that even if Zuma were to remove Gordhan and his deputy Mcebisi Jonas from his cabinet, there should be no concern about the value of the rand “because there is no evidence that the rand would fall because of that”.
Ndlela was reacting to a decision taken by Zuma to instruct Gordhan to return from an international investment promotion roadshow, which had started in the UK and was suppose to end in the US.
The office of the president issued a statement yesterday saying Gordhan should “return to South Africa immediately”, but did not explain the reason for the instruction.
There had been reports that the trip had not been authorised, and that Zuma wanted them to be at home when he announced the cabinet reshuffle, which would apparently be targeting them.
Ndlela said there was no evidence that any decision by Zuma about his cabinet members would be a reason for the rand to fall, since a few months ago the competition commission revealed that some banks were manipulating it.
“It is difficult for me to trust whether the rand is legitimately falling or that there are other underlying reasons.
“Remember, we have no evidence that the rand is not being manipulated.
“All we know is that the 17 banks are continuing with what they have been doing.
“You recall someone from a trip, is that enough grounds for the rand to fall? Why would the rand fall? Is there a change in policies? No,” said Ndlela.
Ndlela said no one should dictate to Zuma when to reshuffle his cabinet, “because if the president feels the time is right, he is entitled to do so”.
“The constitution of the republic says it is the prerogative of the president to hire and fire ministers.
“It does not say that the timing has to be right or not.
“It leaves that to the president,” he said.
He said the ANCYL in eThekwini would welcome Gordhan’s recall because he was a hindrance to the call for radical economic transformation.
“Right now, we believe we are not getting anywhere with radical economic transformation.
“The minister is on record saying the timing for radical transformation is not right. In his view, we must wait for some miracles to happen,” he said