His late night dismissal led to a 5% plunge in the value of the currency, the rand.

Gordhan was seen as a bulwark against corruption in an administration that is facing growing criticism. He was one of several victims as President Jacob Zuma conducted a major overhaul of his cabinet.

Zuma said the midnight reshuffle was about a “radical socio-economic transformation”.

Ramaphosa told state broadcaster SABC that he would not resign in respose to the sacking but continue to ” serve the people.”

Malusi Gigaba, previously the Minister of Home Affairs, has replaced Gordhan, while Sfiso Buthelezi will become Deputy Finance Minister, replacing Mcebisi Jonas.

President Zuma also made a number of other changes in the cabinet.

“I have directed the new ministers and deputy ministers to work tirelessly with their colleagues… to ensure that the promise of a better life for the poor and the working class becomes a reality,” President Zuma’s statement said.

Earlier this week, President Zuma recalled Gordhan from planned events in the UK and last October, he was charged with fraud – but the charges were later dropped.

Earlier this week, Mr Gordhan was in London reassuring investors to have confidence in his country’s economy, but his sacking will have the opposite effect.

His replacement is a man with little economic experience but a keen supporter of the president.

There will be a sharp economic and political reaction to this move by a president still fighting off allegations of corruption and what is known as “state capture”, over the political influence of a controversial family.

A nuclear power station deal with Russia worth billions, could now be back on, and commentators will wonder if radical transformation refers to his recent comments about taking land without compensation to give to the people.

Gordhan had been seen as standing up to President Zuma in cabinet and has warned against corruption becoming rampant.

The South African Communist Party, an ally of the governing African National Congress, had earlier lodged a formal objection to plans to dismiss Mr Gordhan, who is widely respected internationally.

Many senior ANC figures also opposed the finance minister’s removal.

Meanwhile, the Democratic Alliance, South Africa’s main opposition party, said it would call a vote of no-confidence in President Zuma in parliament.

Pressure has been growing on Zuma to step down amid numerous allegations of corruption. He has been accused of allowing members of the Indian-born Gupta family to wield undue influence in his administration in a scandal known as “state capture”.

The replaced Deputy Finance minister Mcebisi Jonas alleged that he had been offered the job of finance minister by one of them.
Zuma denies the claims.

Follow Us

”

The post Cracks in S’ Africa’s leadership as Zuma sacks finance minister Gordhan appeared first on New Mail Nigeria.

Zuma, whose colorful private life has often overshadowed his status as the leader of Africa’s most industrialized economy, came through the impeachment move thanks to the African National Congress’s big majority in the 400-seat assembly.

But the fall-out from the crisis has engendered political uncertainty which investors fear might yet hasten a credit ratings downgrade by ratings agencies.

Zuma, 73, who was not at the fiery session in parliament on Tuesday, may be safe for now. But his image has been further dented and many believe his trademark charm which has ensured him survival for so long might not be enough to keep him politically afloat indefinitely.

The ANC, which controls almost two-thirds of the assembly, gave Zuma the support he needed as expected, with 233 lawmakers voting against the impeachment motion and 143 voting in favor.

The rand ZAR=D3 weakened by more than 2 percent, partly on political risk jitters over the vote.

The motion, launched by the opposition Democratic Alliance (DA), led to an emotional debate following last week’s ruling by the court that the president had breached the constitution by ignoring an order to repay some of the $16 million in state funds spent on renovating his home.

“The choice is whether or not you will choose to protect your oath of office that you took here in this house, to protect the constitution, or to serve Jacob Zuma,” Mmusi Maimane, leader of the DA party said.

Julius Malema, leader of the smaller opposition party Economic Freedom Fighters, said: “Zuma and the ANC want to convert South Africa into a banana republic.”

ANC lawmakers argued that Zuma had not violated the constitution deliberately and did not deserve to be impeached. But they acknowledged the party had much to do to rebuild its image.

“There has been damage on the part of the ANC. We need to go down on the ground and explain exactly what happened. We still have a lot to do,” ANC chief whip Jackson Mthembu told reporters outside parliament. “We believe him (Zuma). We accept his apology. We think we can now move forward.”

Zuma had already secured the backing of top ANC officials on Friday, after apologizing for failing to repay some of the money spent on his residence.

“The president has apologized and that’s the humility that is necessary for any leader,” ANC General Secretary Gwede Mantashe told 702 Talk Radio, after a wider group of party members met on Monday to discuss Zuma.

Zuma has survived several political and personal scandals, fending off accusations of corruption, influence peddling and even rape before he took office in 2009.

On March 1, he survived his second no-confidence vote in a year over what the DA party called his reckless handling of the economy.

That vote came after Zuma was widely criticized in December when he changed finance ministers twice in a week, sending the rand plummeting and alarming investors.

But the latest scandal is arguably the biggest to hit the president.

In late March, the ANC backed Zuma after a party summit following allegations of political interference by his business friends, the Gupta family.

Zuma has insisted his ties with the Guptas are above board, but the opposition demanded his resignation after senior officials accused the family of wielding undue influence in government appointments and activities. The Guptas say they are pawns in a plot to oust Zuma.

Investors fear further uncertainty could lead to a ratings downgrade, potentially into “junk” territory, and raise borrowing costs.

Speaking after the vote, Finance Minister Pravin Gordhan said ratings agencies would take the political situation into account when reviewing South Africa’s credit rating.

“Politics, economics and the fiscal situation are all things ratings agencies watch out for. South Africans should be aware of that,” Gordhan told Reuters.

“The controversies surrounding Mr. Zuma’s scandal-racked presidency will probably continue for some time yet. This will erode South Africa’s reputation among investors and reduce the government’s ability to push for vital reforms,” John Ashbourne, London-based Africa economist at Capital Economics said.

Former finance minister Trevor Manuel, who served under Nelson Mandela for 11 years, said Zuma should resign.

“I think it’s in all our interest that the President actually steps aside,” Manuel said in an interview published online by the Soweto TV channel.

Follow Us

The post South African President Zuma survives impeachment vote appeared first on New Mail Nigeria.