Zuma cancels Gordhan road show
JOHANNESBURG. — South African President Jacob Zuma ordered Finance Minister Pravin Gordhan to return from an investor road show to Britain and the United States yesterday because he “did not give permission for the trip”, a government source said. Appointed in late 2015 after a predecessor’s sudden sacking, Gordhan was in London for the first leg of a week-long non-deal investor road show in Britain and the United States.
JOHANNESBURG. - South African President Jacob Zuma ordered Finance Minister Pravin Gordhan to return from an investor roadshow to Britain and the United States yesterday because he “did not give permission for the trip”, a government source said.
Appointed in late 2015 after a predecessor’s sudden sacking, Gordhan was in London for the first leg of a week-long non-deal investor roadshow in Britain and the United States.
Weak economic growth and tensions within the ruling party African National Congress (ANC) have put South Africa’s investment grade credit rating at risk.
The rand fell as much as 1.7 percent following the report, while bonds weakened sharply. Banking shares on the Johannesburg bourse fell more than 2 percent.
“They were told last night or this morning to come back . . . the presidency did not give permission for the trip,” the government source said.
The president’s office could not be reached for comment.
Africa’s most industrialised economy escaped being downgraded to junk status last year. S&P Global Ratings and Fitch Ratings both rank the sovereign one level above junk, while Moody’s puts it two notches higher. Moody’s, which put South Africa on negative watch in its latest review, is due to revisit that on April 7, followed by S&P at the beginning of June.
Gordhan’s team on the trip to London, Boston and New York included deputy finance minister Mcebisi Jonas and Treasury director general Lungisa Fuzile, as well as business executives and union leaders.
Meanwhile, President Zuma has taken charge of yet another inter-ministerial committee. This time, the president will chair the reconstituted inter-ministerial committee on information and publicity, which will now be called the IMC on communications. The president will now chair the IMC, assisted by communications minister Faith Muthambi, who will be responsible for the co-ordination of the communication function, the presidency said on Monday.
“The location of the communication function in the Communication Ministry will centralise communication and should improve the management of GCIS which will now report to one Minister, the Minister of Communications,” the presidency said.
The committee was previously chaired by minister in the presidency Jeff Radebe.
The IMC consists of Radebe, Muthambi, arts and culture minister Nathi Mthethwa, minister of co-operative governance and traditional affairs, David van Rooyen, economic development minister Ebrahim Patel, environmental affairs minister Edna Molewa, finance minister Pravin Gordhan.
It will also include international relations and co-operation minister Maite Nkoana-Mashabane, police minister Nathi Nhleko, social development minister Bathabile Dlamini, state security minister David Mahlobo, telecommunications minister Siyabonga Cwele, minister of trade and industry Rob Davies and water and sanitation minister Nomvula Mokonyane.
“President Zuma has thanked Minister Radebe for his capable management of the function until the hand over to its rightful department,” the presidency said. - Reuters/News24.