National 29.3.2017 07:43 am

Chamber of Mines concerned about Gordhan’s recall from investor roadshow

Minister of Finance Pravin Gordhan during a media briefing before he presented his 2016 Budget Vote Speech in the National Assembly on February 24, 2015 at Parliament in Cape Town, South Africa. Gordhan that he will be cutting government expenditure while still making R870-billion available for infrastructure development. (Photo by Gallo Images / Beeld / Nasief Manie)

Minister of Finance Pravin Gordhan during a media briefing before he presented his 2016 Budget Vote Speech in the National Assembly on February 24, 2015 at Parliament in Cape Town, South Africa. Gordhan that he will be cutting government expenditure while still making R870-billion available for infrastructure development. (Photo by Gallo Images / Beeld / Nasief Manie)

In a statement, the Chamber said it was concerned about both the timing of the request and the negative impact this has had on the markets.

The Chamber of Mines said on Tuesday that it was deeply concerned about recent developments regarding the request by President Zuma for Finance Minister Pravin Gordhan to return home in the middle of an important international investor roadshows.

Zuma on Monday instructed Gordhan and his deputy Mcebisi Jonas to cancel the international investment promotion roadshow to the United Kingdom and the United States and return to South Africa immediately, prompting the rand to fall amid fears of a Cabinet reshuffle.

In a statement, the Chamber said it was concerned about both the timing of the request and the negative impact this has had on the markets.

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“At this critical time where so much has been invested by business, government and organised labour in promoting greater economic stability and to maintaining South Africa’s crucial sovereign investment grade rating, the recent events have fuelled negative speculation which is damaging to our country’s reputation as an investment destination,” the Chamber said.

“We urge President Zuma and Cabinet to act in South Africa’s best interests to promote a stable, predictable and competitive environment to ensure we continue to build a positive investment climate built on ethical leadership and good governance so that we can meet our economic, social and developmental goals.”

Gordhan, Jonas, and director general Lungisa Fuzile, were set to embark on a non-deal international investor roadshow this week, together with business and labour representatives.

The delegation would have spent two days in London, one day in Boston in the United States, and two days in New York.

On his return on Tuesday morning, Gordhan said he had spoken to all three major credit rating agencies in London and assured them of South Africa’s stable economic and investor climate.

Gordhan also attended the application for a declaratory order, at the Pretoria High Court, that he could not intervene on behalf of the politically-connected Gupta family in commercial banks’ decision to close their accounts.

African News Agency (ANA)

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