Horror as Zuma fires Gordhan in late-night reshuffle that ‘wasn’t discussed’

President Jacob Zuma has made his move – firing Finance Minister Pravin Gordhan and shifting Cabinet around to include two of his allies in what is being seen as an attack on Treasury.

In a late-night statement, Zuma confirmed what the country had been suspecting – that long-time favourite Gordhan, and his deputy Mcebisi Jonas, whom many regard as a bastion of morality after he allegedly turned down an offer from the Gupta family to take over the position of finance minister – were out.

Read: Full statement: Zuma rings in the changes with Cabinet reshuffle

Zuma has replaced Gordhan with Malusi Gigaba, the former home affairs minister and ANC Youth League leader and known Zuma loyalist.

Jonas has been replaced by Sfiso Buthelezi, who advised Zuma during his years as MEC in KwaZulu-Natal, and is the former chairperson of the embattled state-owned rail agency Prasa.

The appointment of two politicians, who are seen as close to Zuma, is an open attack on Treasury, according to Nomura emerging market economist Peter Montalto.

“I view this as an open attack on Treasury to replace people who are anti-corruption with people loyal to Zuma to help the Zuma faction win in December.

Montalto said “this attack on the institution of National Treasury” will trigger multiple downgrades.

“As we’ve highlighted before, while there are some fiscal risks we are more worried about National Treasury’s role in procurement, preventing corruption and oversight of state-owned entities including nuclear and banking.

“We think this is bad for the market and for South Africa,” he said. “Equally there are questions hanging over Buthelezi around his role at Prasa (he was its former chairperson) and the links of both to various others such as the Guptas.”

He said South Africans should expect a growth shock here like after Nene-gate, when former finance minister Nhlanhla Nene was fired on December 9 2015.

Read: Zuma’s suicide mission could go either way. Expect collateral damage

It “is going to make things harder on the fiscal side with difficult choices on revenues and probably a decision to debt finance instead”.

ANC secretary-general Gwede Mantashe told Power FM that there was disagreement with the Cabinet reshuffle.

He said they usually had discussions on reshuffles but were “basically informed” about the latest one.

Former tourism minister Derek Hanekom, who was replaced by his deputy, a former school teacher, Tokozile Xasa, said he was not given a reason for his dismissal and found out about it through a media release.

Democratic Alliance leader Mmusi Maimane said the late-night announcement by Zuma should be a rallying call for all South Africans to stand together and defend our hard-won Constitutional democracy.

“The president has once again shown that he has no interest in our beloved country’s future – or the 9 million South Africans who are unemployed. He has bowed to the whims of those who are determined to enrich themselves at the expense of the poor and jobless. This is an act of complete state capture.

We cannot sit by and let this happen. It is time that all South Africans stand together to protect our democracy.”

Yesterday, the DA took the decision to table a motion of no confidence in Zuma – in terms of Section 102 of the Constitution – following his now confirmed intention to fire Gordhan and Jonas.

“It is Parliament who hired Jacob Zuma and it is Parliament that can fire him,” said Maimane.

“We therefore urge all political parties, including members of the ANC, to vote President Jacob Zuma out when the DA’s motion of no confidence is debated in the National Assembly.

“The time is now. We must stand together and defend what so many fought and died for.”

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