Gordhan: Nhlanhla Nene’s axing damaged SA's economy

Nhlanhla Nene was fired as Finance Minister in December 2015 in a move that sent the rand crashing and created fears that the economy could be downgraded to junk status.

Pravin Gordhan at the commission of inquiry into state capture on 19 November 2018. Picture: Abigail Javier/EWN

JOHANNESBURG – Public Enterprises Minister Pravin Gordhan has spoken in detail about the damage that Nhlanhla Nene’s axing had on the economy and how ordinary South Africans were subsequently affected.

Gordhan is continuing with his testimony at the state capture commission on Tuesday.

Nene was fired as Finance Minister in December 2015 in a move that sent the rand crashing and created fears that the economy could be downgraded to junk status.

Gordhan says the Public Investment Cooperation (PIC) also lost billions of rands.

“So, for so-called ordinary South Africans, the first impact is on their salaries. The second is that, if that turmoil continued, pretty much as we see today and if the rand begins to head this sort of direction of R15,90, R16,90, R16,50, then as you know we import our oil, largely except for what Sasol produces.

“That means the price of petrol and diesel is the cost which the citizen has to pay.”

(Edited by Leeto M Khoza)