Van Rooyen booted from Finance after just four days

South Africa’s government will keep to its prudent fiscal stance and maintain expenditure ceilings announced in the budget, President Jacob Zuma said after firing Finance Minister Nhlanhla Nene on December 9, without initially providing a reason.

In a statement, Mr. Zuma said he…

“The stunning re-appointment of the respected Gordhan indicates the levels of consternation that must’ve prevailed within the ANC this weekend”, he said.

The rand breached 16 to the USA dollar for the first time, government bond yields rose and bank stocks dived further in reaction to Nhlanhla Nene being dismissed late Wednesday.

“It is very evident that Wednesday evening’s announcement was all about Jacob Zuma and not about what was in the best interests of South Africa”.

“I have received many representations to reconsider my decision”.

Zuma did not explain why Nene was not retained until it was clear whether his candidacy was successful.

His replacement for less than a week, Mr van Rooyen, is a little-known MP.

Gordhan, who had been under attack over allegations that a “rogue” intelligence unit was allowed to operate at the SA Revenue Service under his watch, said he regarded it as his “responsibility to serve and to help the country onto a path of economic growth and recovery”. Anything less than a massive rebound when the market reopens will be a signal investors have exhausted of institutionalized corruption in the name of BEE, want concerted action including Zuma’s head. Analysts were sceptical about the outlook for the assets, noting the need for more fiscal discipline and the looming US rate rise. “Fortunately Gordhan has the gravitas and the track record and all the rest of it to inspire some confidence for the short-term”, he said.

There is strong speculation in senior ANC circles that Minister in the Presidency Jeff Radebe and Trade and Industry Minister Rob Davies are next in line for the axe, while the job of Higher Education Minister Blade Nzimande hangs in the balance.

“The global economy has slowed down and most indicators are not pointing in a favourable direction, particularly in emerging markets”, he said.

Achmat pointed out another challenge of the reshuffle.

Mr Zuma’s office also criticised as a “malicious fabrication” reports that Mr Nene was removed because Ms Myeni was not happy with instructions from the respected former finance minister. Gordhan’s deployment to the post was seen as sending an effective official to a troubled sector.

An SACP member told the Sowetan that they didn’t even know who van Rooyen was, and questioned his ability to run the finance ministry.