October 9, 2018
BBC News Africa


[image: image.png]Image copyright Getty Images
Image caption Nhalnhla Nene became finance minister for the second time in
February

South Africa's finance minister Nhlanhla Nene has quit after admitting
meeting members of the Gupta family, who have been accused of corruption.

President Cyril Ramaphosa said he accepted the resignation "in the
interests of good governance".

The Guptas have been accused of working with former President Jacob Zuma to
secure government contracts and determine cabinet appointments.

Both the Guptas and Mr Zuma deny the allegations.

Mr Nene has been replaced by former central bank chief Tito Mboweni. This
is the fifth change of finance minister since 2014.

Last week, Mr Nene told a judge-led inquiry into the alleged influence of
the Guptas, known as the Zondo commission, about meetings that he had
previously denied.

There is no suggestion that he had done anything illegal in meeting the
businessmen during his stint as deputy finance minister and finance
minister in Mr Zuma's government, but he has been under intense political
pressure to step down since making the admission.

Mr Zuma sacked him as finance minister in 2015, but he was reappointed by
the current president in February.

Rumours of his intended resignation on Monday led to a fall in the value of
South Africa's currency, the rand, but it has since recovered its value.
What was so controversial about the meetings?

Mr Nene met the Guptas at their businesses and home at least six times
between 2009 and 2014.

On the face of it a finance minister talking to top business people may
seem normal, but the Guptas have been accused of using meetings, in their
residence in a posh suburb of Johannesburg, to influence political
decisions.

Former Deputy Finance Minister Mcebisi Jonas has told the Zondo commission
that in 2015 he had been offered 600m rand ($41m; £32m) if he accepted the
post of finance minister at a meeting at the Johannesburg mansion. The
Guptas denied the allegation.

After revealing the details of his own meetings, Mr Nene issued a public
apology saying: "I am human too, I do make mistakes, including those of
poor judgement."
Is this a blow to Mr Ramaphosa?

Mr Ramaphosa, who became president in February, brought Mr Nene back into
the cabinet in order to restore confidence in the reputation of the
country's economic management.

It had received a battering under Mr Zuma's presidency.

In his speech accepting the resignation, Mr Ramaphosa said that Mr Nene had
"defended the cause of proper financial management and clean governance".

But he had accepted the resignation because Mr Nene feared his testimony
"detracted from the important task of serving the people of South Africa as
we work to re-establish public trust in government", Mr Ramaphosa said.
'New way of doing things'

*Milton Nkosi, BBC News, Johannesburg*

Mr Nene's resignation signals a new way of doing things in South African
politics.

He fell on his sword for admitting that he had misled people, but his act
is remarkable in itself as there was no evidence of any wrong doing during
his meetings with the Guptas.

The culture of resigning is almost non-existent in South Africa,
particularly amongst senior political figures.

People wait until they are pushed. Mr Nene jumped.

There are many within the current administration who have done far worse
and yet cling onto their cushy jobs.
[image: image.png]Image copyright Reuters
Image caption President Cyril Ramaphosa has now appointed Tito Mboweni
(right) as finance minister

The appointment of Mr Mboweni, 59, has been widely welcomed.

He became South Africa's first black central bank governor in 1999 and was
in the post for a decade.

He was seen as having done a good job, and is considered an old and trusted
hand.
Who are the Guptas?

The Gupta family relocated to South Africa from India in 1993 and began to
build up a business empire with interests in mining, air travel, energy,
technology and media.

Using its wealth, the family was accused of wielding enormous political and
economic influence under the presidency of Mr Zuma in what is known in
South Africa as "state capture".

   - Who are the Guptas? <https://www.bbc.com/news/world-africa-22513410>

Both Mr Zuma and the Gupta family have denied wrongdoing but the corruption
allegations added to a sense of South Africa's decline under his presidency.

He resigned as president in February and people hoped Mr Ramaphosa could
repair the damage.

According to South African media, some of the Guptas now live in Dubai.

Mr Ramaphosa's government signed an extradition treaty with the United Arab
Emirates in September.

This fuelled speculation that South Africa may try to have them extradited
once investigations into alleged corruption are concluded.

Are we seeing a new way of doing things in South African politics?

Milton Nkosi

BBC Africa, Johannesburg
[image: image.png]ReutersCopyright: Reuters

South Africa's president appointed Tito Mboweni (right) as the new finance
minister at press conference in Cape Town.Image caption: South Africa's
president appointed Tito Mboweni (right) as the new finance minister at
press conference in Cape Town.

South African President Cyril Ramaphosa’s decision to accept Nhlanhla
Nene’s resignation as finance minister and replace him with Tito Mboweni
has been widely welcomed.

The markets reacted positively following Tuesday's announcement: the South
African rand strengthened against the US dollar.

Mr Mboweni is an old and trusted hand. He was South Africa’s eighth
governor of the central bank and the first black South African to hold that
position after the end of apartheid.

He also served as labour minister in former President Nelson Mandela's
administration.

The move signals a new way of doing things in South African politics.

Mr Nene fell on his sword for admitting that he met the controversial Gupta
family at their home and offices, contradicting his previous statement that
he met them only at public events. And that in itself is a remarkable thing
as there was no evidence of any wrong doing by Mr Nene.

The culture of cabinet members resigning is almost non-existent in South
Africa.

People wait until they are pushed. Mr Nene jumped.

There are many within Mr Ramaphosa's administration who have done far worse
and yet cling onto their cushy jobs.






-- 
Ann Marie

"The art of living consists of knowing what to pay attention to and what to
ignore."  -- Mardy Grothe

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