South Africa’s government was rocked on Wednesday by suggestions that a wealthy family with close ties to President Jacob Zuma may have been behind his decision to sack the country’s respected finance minister Nhlanhla Nene in December.
Zuma had alarmed investors earlier in December when he first replaced Nene with David van Rooyen, a little-known politician with no financial background. Under a barrage of criticism, he abruptly replaced van Rooyen just days later with Gordhan, who had held the job from 2009 to 2014.
Deputy Finance Minister Mcebisi Jonas said on Wednesday that he had been offered Nene’s job before van Rooyen by members of the Gupta family.
Members of the Gupta family offered me the position of Minister of Finance to replace then-Minister Nene. I rejected this out of hand. The basis of my rejection of their offer is that it makes a mockery of our hard-earned democracy, the trust of our people and no one apart from the President of the Republic appoints ministers.Mcebisi Jonas, Deputy Finance Minister, South Africa
Jonas’s claims are likely to further undermine Zuma’s credibility and rile South Africa’s markets, both of which have already been damaged by a public row between police and Pravin Gordhan.
The Gupta family denied offering anyone with a job in the government. They challenged Jonas to provide an account of the “supposed meeting that took place, under oath, in a court of law”. Zuma’s office was not immediately available to comment.
The Guptas, who moved to South Africa from India, run businesses ranging from uranium and coal mining to media and information technology.
Zuma has previously said his ties with the Guptas are above-board. As per documents, Zuma’s son, Duduzane, is a director in some of the companies owened by the Gupta family.
Zuma’s ruling African National Congress said it would not condone having the family playing any role in appointing government officials.
This is an issue we just can’t close our eyes to.Zizi Kodwa, ANC Spokesperson
The claims concerning the Guptas have erupted just as a prolonged confrontation between Gordhan and the elite Hawks police unit has raised concerns that the run on the rand and bonds seen in December could be repeated.
Commenting on Jonas’ claims by Jonas, political analyst Gary van Staden from consulting firm NKC said:
It confirms our suspicions that the Gupta family has extreme and undue influence on public policy making and the president of the country. I wouldn’t be surprised if the response from President Zuma was deafening silence, but it’s going to be difficult for him to dodge these questions in parliament tomorrow (at a pre-scheduled appearance) when he has to face questions from the house.
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