Economy hit hard by Nene dismissal in 2015: Gordhan
Public Enterprises Minister Pravin Ghordan says the removal of Nhlanhla Nene as Minister of Finance in 2015 had an immediate negative impact on the economy.
Gordhan is currently testifying before the Zondo Commission Inquiry into State Capture.
"The announcement of Mr. Van Rooyen's appointment was made at 11pm on the 9th. On the 10th at midnight, the Rand was at R15.25. The average was R15.27. On the 11th, it was R15.90 so clearly, there would be a further deterioration," Gordhan said.
Nene was replaced by Des van Rooyen when former President Jacob Zuma reshuffled his Cabinet.
Gordhan says the appointment of Van Rooyen had a domino effect on South Africans in general.
"The first impact is on the savings. Second is that the price of petrol is at the cost that the citizen has to pay. These price increases then filter into the economy, transport costs increase and these price increases then begin to impact on the inflation rate."
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During his testimony yesterday, Ghordan revealed that it became apparent to him that Zuma and the Department of Energy were adamant in pursuing the controversial 2011 Russian nuclear deal, which would cost the country approximately R1-trillion.