Finance Minister Pravin Gordhan
The rand dropped on Monday morning after a news report that President Jacob Zuma had ordered Finance Minister Pravin Gordhan and his deputy, Mcebisi Jonas, to return to South Africa from the United Kingdom.
Delegates from the treasury, including director general Lungisa Fuzile, had been on an international investor roadshow, which has now been cut short, according to the Daily Maverick.
Following news reports, the rand dropped by 29 cents to R12.60/$ after reaching a high of R12.31/$.
Business Day has reported that the trip was cancelled because it was allegedly “unauthorised”. According to the newspaper, Fuzile was notified of the cancellation of the remainder of the trip in a letter.
Treasury, meanwhile, has said that it had received written authorisation for the roadshow. The Daily Maverick reported that the authorisation was rescinded with no clear reason.
In a statement, Presidency spokesperson Bongani Ngquluna confirmed that Zuma had “instructed” Gordhan and Jonas to cancel the roadshow and return to SA “immediately”. The presidency did not provide a reason for the withdrawal.
The order for Gordhan to return has fuelled speculation of a Cabinet re-shuffle where Zuma may oust Gordhan. Since Gordhan returned to his post in the finance ministry – following the resignation of Des van Rooyen in 2015, who took over after Zuma ousted Nhlanhla Nene – rumours have mounted that he may be removed. Both the Hawks and the National Prosecuting Authority (NPA) have admitted to investigating Gordhan after he became finance minister.
The delegation from treasury was meant to conduct its roadshow in London on Monday and Tuesday, while Jonas was meant to lead the second leg of the trip in the United States.
The order for the senior treasury team to head back to South Africa comes a day before Gordhan’s application seeking an order that he cannot interfere in the Guptas’ clash with banks is due to be heard in the high court in Pretoria.
The schedule for the investor roadshow will reportedly remain in place without Gordhan and Jonas.