South Africa's finance chief recalled from UK trip

By Hassan Isilow

JOHANNESBURG

President Jacob Zuma on Monday ordered his finance minister to return from a trip to the U.K., triggering rumors of a Cabinet reshuffle.

The president’s office did not give any reason for the recall of Pravin Gordhan from an investor roadshow but the announcement led to the South African rand falling by nearly 2 percent against the U.S. dollar.

Gordhan is seen as a stabilizing factor in the Treasury, where he was appointed in December 2015 after Zuma fired two finance ministers in less than a week, sparking a sell-off of South African assets.

In a short statement, Zuma’s office said the minister and his deputy Mcebisi Jonas had been “instructed” by the president to cancel the roadshow in the U.K. and U.S. and return to South Africa “immediately”.

“The finance minister and his deputy are seen to be in opposition the president when it comes to issues of excessive spending in government,” political analyst Andre Duvenhage, of North-West University, told Anadolu Agency.

Gordhan, who first served as finance minister from 2009-2014, and Jonas are said to have been targeted by members of Zuma’s faction within the ruling African National Congress (ANC).

According to local media reports, Zuma favors his former wife Nkosazana Dlamini-Zuma, who served as a minister under Zuma and previous presidents, for the finance portfolio.

She left her previous role as chairwoman of the African Union Commission in January.

Since taking office, Gordhan has faced a number of allegations.

Last year, prosecutors announced fraud charges against Gordhan. The charges, which were withdrawn in October, led to instability the markets, which were also unnerved last month when rumors of his removal surfaced.