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South Africa's Finance Minister Pravin Gordhan warns state firms | South Africa's Finance Minister Pravin Gordhan warns state firms |
(about 3 hours later) | |
South Africa's new finance minister has warned that state-owned companies should not be used as "personal toys". | South Africa's new finance minister has warned that state-owned companies should not be used as "personal toys". |
Pravin Gordhan, the country's third finance minister in less than a week, was making his first comments since he was appointed on Sunday. | Pravin Gordhan, the country's third finance minister in less than a week, was making his first comments since he was appointed on Sunday. |
He refused to mention any names but there are concerns that some state-run firms are being poorly managed. | He refused to mention any names but there are concerns that some state-run firms are being poorly managed. |
In a bid to reassure the markets, he said that the country "will stay the course of sound fiscal management". | In a bid to reassure the markets, he said that the country "will stay the course of sound fiscal management". |
Last week, President Jacob Zuma sacked previous Finance Minister Nhlanhla Nene in a widely criticised move that sent the rand to record lows. | Last week, President Jacob Zuma sacked previous Finance Minister Nhlanhla Nene in a widely criticised move that sent the rand to record lows. |
Mr Gordhan replaced David van Rooyen who had only been in the job since Thursday. | Mr Gordhan replaced David van Rooyen who had only been in the job since Thursday. |
Who is Pravin Gordhan? | Who is Pravin Gordhan? |
'Zuma Must Still Fall': South Africa reacts to economic troubles | 'Zuma Must Still Fall': South Africa reacts to economic troubles |
He told journalists that "it's time that individuals, or groups of individuals, stop playing with state entities... as if [they're] a personal toy from which you can extract money when you feel like". | He told journalists that "it's time that individuals, or groups of individuals, stop playing with state entities... as if [they're] a personal toy from which you can extract money when you feel like". |
"We do require a bit of national reflection... as to how do we want to manage state resources," he added. | "We do require a bit of national reflection... as to how do we want to manage state resources," he added. |
Mr Nene's reluctance to approve a plan to build several nuclear power stations at a cost of up to $100bn is thought to have contributed to his removal as finance minister. | Mr Nene's reluctance to approve a plan to build several nuclear power stations at a cost of up to $100bn is thought to have contributed to his removal as finance minister. |
He also opposed plans for to buy a new presidential jet and to bail out the national airline. | He also opposed plans for to buy a new presidential jet and to bail out the national airline. |
Restore confidence | Restore confidence |
Mr Gordhan was widely respected when he served as South Africa's finance minister from 2009 until 2014. | Mr Gordhan was widely respected when he served as South Africa's finance minister from 2009 until 2014. |
But President Zuma's move to get rid of him drew a lot of criticism from within the governing ANC. | But President Zuma's move to get rid of him drew a lot of criticism from within the governing ANC. |
BBC Africa business reporter Lerato Mbele says his re-appointment is designed to quell market discontent and restore some confidence. | BBC Africa business reporter Lerato Mbele says his re-appointment is designed to quell market discontent and restore some confidence. |
It appeared to have an immediate effect with the currency rising, recovering from just over 16 rand to the dollar to about 15 by Monday morning, according to currency site xe.com. | It appeared to have an immediate effect with the currency rising, recovering from just over 16 rand to the dollar to about 15 by Monday morning, according to currency site xe.com. |
The Johannesburg stock exchange also recovered some of last week's losses. | The Johannesburg stock exchange also recovered some of last week's losses. |
Analysis: Milton Nkosi, BBC News, Johannesburg | Analysis: Milton Nkosi, BBC News, Johannesburg |
President Jacob Zuma's decision to fire two finance ministers in the space of a week has been a colossal blunder. | President Jacob Zuma's decision to fire two finance ministers in the space of a week has been a colossal blunder. |
Not only has it been recognised by opposition parties, who are calling for his resignation, but also by the general public and the financial markets. | Not only has it been recognised by opposition parties, who are calling for his resignation, but also by the general public and the financial markets. |
The president acknowledged his initial mistake, hence the change in mind. | The president acknowledged his initial mistake, hence the change in mind. |
But what is happening with the governing African National Congress? | But what is happening with the governing African National Congress? |
The ANC leadership was not consulted and seemed to be hearing about the dramatic appointments at the same time as the rest of us. | The ANC leadership was not consulted and seemed to be hearing about the dramatic appointments at the same time as the rest of us. |
There is no doubt that the continent's oldest liberation movement is in disarray. | There is no doubt that the continent's oldest liberation movement is in disarray. |
President Zuma will emerge weaker but the party will not lose votes in the medium term - as people remain loyal to the movement if not the individual. | President Zuma will emerge weaker but the party will not lose votes in the medium term - as people remain loyal to the movement if not the individual. |
Zuma's careless blunder | |
Mr Gordhan has a hard job with unemployment currently above 25%, growth sluggish and credit rating agency Fitch recently downgrading South Africa to one notch above "junk" status. | Mr Gordhan has a hard job with unemployment currently above 25%, growth sluggish and credit rating agency Fitch recently downgrading South Africa to one notch above "junk" status. |
The brief tenure of Mr van Rooyen and the uncertainty it caused may have damaged South Africa's reputation further, analysts say. | The brief tenure of Mr van Rooyen and the uncertainty it caused may have damaged South Africa's reputation further, analysts say. |
Mohammed Nalla, head of research at Nedbank Capital, said having a finance minister serve just a few days did not bode well. | Mohammed Nalla, head of research at Nedbank Capital, said having a finance minister serve just a few days did not bode well. |
"International investors are probably thinking: 'Why didn't the president make a much more considered decision in the first place?'" he said. | "International investors are probably thinking: 'Why didn't the president make a much more considered decision in the first place?'" he said. |
Former Health Minister Barbara Hogan on Friday called on Mr Zuma to resign. The highest-profile ANC member to oppose Mr Nene's removal, she said that the president had crossed a line and needed to be held to account. | Former Health Minister Barbara Hogan on Friday called on Mr Zuma to resign. The highest-profile ANC member to oppose Mr Nene's removal, she said that the president had crossed a line and needed to be held to account. |
Razia Khan, an analyst with Standard Chartered bank, said the turmoil was "perhaps the first instance since 2007 that Zuma has come under severe pressure within the party". | Razia Khan, an analyst with Standard Chartered bank, said the turmoil was "perhaps the first instance since 2007 that Zuma has come under severe pressure within the party". |
A statement from Mr Zuma's office said he had "received many representations" to reconsider his decision to appoint Mr van Rooyen. | A statement from Mr Zuma's office said he had "received many representations" to reconsider his decision to appoint Mr van Rooyen. |
"As a democratic government, we emphasise the importance of listening to the people and to respond to their views," it added. | "As a democratic government, we emphasise the importance of listening to the people and to respond to their views," it added. |
Fitch said on Thursday that Mr Nene's sacking "raised more negative than positive questions". | Fitch said on Thursday that Mr Nene's sacking "raised more negative than positive questions". |