South African President, Jacob Zuma told senior leaders of the South African Communist Party, which is allied to his ruling African National Congress, during a meeting on Monday in Johannesburg, that he plans to fire Finance Minister Pravin Gordhan according to three 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 in Britain and the United States, the presidency said on Monday.
What an irresponsible non-statement, given the likely impact on the markets. An explanation WHY is necessary, not mere confirmation #Gordhan pic.twitter.com/1NWzAninX6
— Phumzile Van Damme (@zilevandamme) March 27, 2017
Reports indicate that the rand fell by around 1.7 percent to the dollar after Pravin was instructed to come back to the country. At around 5:50am, the rand had extended its recent gains trading at R12,33 to the dollar.
The Banking Association of SA warned that the step could lead to a credit rating downgrade, which Gordhan has worked to avoid since returning to the helm of National Treasury in December 2015.
“This action by the Presidency rolls back the progress we have made as a country. It also militates against the imperative of ensuring political and policy certainty,” the MD of the group, Cas Coovadia, said.
“Another potential outcome of this action could be a consideration by rating agencies to downgrade SA to sub-investment grade status. This would be very negative for banks and other corporates, whose ratings would follow the sovereign.”
Social Media has been abuzz since the news broke, some worried about the weakening currency, others turned the decline of the rand as a meme opportunity.
Here are some of the memes under the #Rand and #Gordhan trend on Twitter:
The #Rand after Pres #Zuma abruptly tells Minister #Gordhan and deputy #Jonas to return from selling #SouthAfrica to investors abroad pic.twitter.com/7gI6T0UYCD
— Charl Linde (@linde_charl) March 27, 2017
Seemingly the Rand only responds to Jacob Zuma hey!! When that banks collusion debacle came out it hardly moved!! #Gordhan pic.twitter.com/JesOYwHiNB
— The Gentleman (@SihleZondi3) March 27, 2017
I swear one day white people and their media will rename the #Rand to #Gordhan. When he is happy 😊 rand goes ☝🏾 when he is sad 😭 it goes 👇🏾
— Lokothwayo (@Owami_Dlamini) March 27, 2017
Honestly the Rand must calm down. #Gordhan pic.twitter.com/Mw2tZaXnza
— #Lemukisa (@RK_Mayekisa) March 27, 2017
#Gordhan Competition Commision found 17 banks guilty of rigging the Rand markets NO MOVEMENT but Pres orders Pravin back the Rands falls 😦🙄 pic.twitter.com/xW68XeIcJY
— Zuko mntonintshi (@ZukoMntonintshi) March 27, 2017
SA: "Wow the rand could actually get under R12.30 to the dollar today!"
Zuma: pic.twitter.com/pNuusBV3BQ— Quinton Bronkhorst (@qornea) March 27, 2017
But why is the Rand catching feelings now?? Gordhan was only asked to catch an early flight…that's all! pic.twitter.com/ytdQhOAADm
— IG: @ThaboKgowana (@ThaboKgowana) March 27, 2017
The Rand after hearing that Pravin #Gordhan & #Jonas have been summoned by Jacob Lemenemene Zuma to come back home. #PravinGordhan pic.twitter.com/QPZpiDiySn
— IG: @AdvBarryRoux (@Barry_Roux) March 27, 2017
#Gordhan.
Des Van rooyen rushing to submit his CV to #SaxonwoldShebeen pic.twitter.com/C5H6XbJkJe— NTS (@96NTSHUXEKO) March 27, 2017
Call #Gordhan back….trying to distract us from #ESKOM scandal.. ..we see you Zuma pic.twitter.com/D633hneJtO
— Clarence WATTS (@clarencesdb) March 27, 2017
Then the Rand slips against the Dollar, Euro & Pound, after the news of the President asking #Gordhan & Jonas to return to South Africa. pic.twitter.com/U9qbAALWrB
— Karabo Mokgoko (@Karabo_Mokgoko) March 27, 2017
#Gordhan & #Jonas should hire this man to fire Jacob Zuma before Jacob Zuma fires them. pic.twitter.com/EnUrVt0UIK
— IG: @AdvBarryRoux (@Barry_Roux) March 27, 2017
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If you didn't enjoy the first movie, you're going to hate the sequel.#Gordhan #Zuma pic.twitter.com/UcMK5kde6f
— Jacques Maree (@JacquesMaree73) March 27, 2017
#Gordhan if permission is rescinded, it means it was initially granted ….what a game🙄
— Redi Tlhabi (@RediTlhabi) March 27, 2017
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.
Monday’s directive from the presidency came after more than a year of tension between Zuma and the finance minister, who last year described a decision to charge him with fraud as “political mischief”.
The matter never made it to court as the charges, which related to the re-employment of a top official at the South African Revenue Services, were withdrawn some weeks after they were brought.
Gordhan has openly and frequently referred to the uncertainty of his situation.
Earlier this month, he told Parliament’s standing committee on public accounts that National Treasury came under political pressure when it was obliged to intervene when other government departments failed to do their job.
“We get into this sloganeering … contain Treasury, take over Treasury. You have all heard it, and I don’t think it is child’s play at the end of the day.”
He added: “I am still standing.”
#Zuma playin with #Gordhan though 😂😂😂😂 pic.twitter.com/qbiZRhF8za
— IG: @Le_cron (@Lecron) March 27, 2017