Loading...

Zuma quits under cloud of scandals

Feb 14 2018 23:47
Mike Cohen, Amogelang Mbatha and Paul Vecchiatto, Bloomberg News
Johannesburg - President Jacob Zuma resigned on Wednesday, bringing an end to his scandal-marred tenure and leaving the nation’s leadership in the hands of the ruling African National Congress’s new leader, Cyril Ramaphosa.


“The ANC should never be divided in my name,” Zuma said in a televised address to the nation. “I have therefore come to the decision to resign as the president of the republic with immediate effect.”

Zuma spoke after the ANC announced it would hold a parliamentary vote of no confidence in him on Thursday. Calls for him to quit had grown since Ramaphosa replaced him as ANC leader in December, and his fate was sealed when the party’s National Executive Committee decided on Monday to order him to step down.

Ramaphosa, who has served as deputy president since 2014, will become acting president and the National Assembly must choose a replacement for Zuma within 30 days.

Ramaphosa is likely to be elected in a permanent capacity on Friday and deliver the State of the Nation Address the same day. The keynote speech was postponed on February 6, two days before Zuma was due to deliver it, due to the turmoil within the ruling party.

Crisis warning

In an interview with the state broadcaster earlier on Wednesday, Zuma strongly criticised the ANC’s decision to remove him, calling it “unfair”, and said, “I think we are being plunged into a crisis that I think my comrades will not be able to handle”.

The resignation gives Ramaphosa, 65, more time to convince voters before elections next year that he’s committed to meeting his pledges to rebuild a battered economy and clamp down on the corruption that critics say has become synonymous with the Zuma era.

While Zuma’s cabinet doesn’t have to resign, Ramaphosa will be able to hire and fire ministers as he sees fit. With the National Budget due to be presented to Parliament on February 21, investors will be watching to see if he retains Malusi Gigaba as his finance minister.

Zuma, 75, has spent years fending off allegations that he took bribes from arms dealers and enabled members of the Gupta family, who are one of his son’s business partners, to influence cabinet appointments and loot billions of rand from state companies.

Gupta raid

His resignation came just hours after the Hawks, a police investigative unit, raided the Gupta family’s Johannesburg residence. One of the Gupta brothers and four other suspects were arrested in connection with the alleged shifting of funds from a failed state-funded dairy project and are due to appear in court on Thursday, Johannesburg’s City Press newspaper reported.

“Zuma’s exit was almost inevitable once it emerged that the ANC was willing to remove him through a vote of no confidence, his former supporters deserted him and the Hawks showed their intent with raids on the Guptas,” said Mike Davies, the founder of political-advisory company Kigoda Consulting.

Growth has averaged just 1.6% a year since Zuma took office in 2009, undermined partly by a series of policy missteps and inappropriate appointments that rocked investor and business confidence.

Disgruntlement with his rule caused support for the ANC to fall to a record low in 2016 municipal elections and cost it control of Johannesburg, the economic hub, and Pretoria, the capital.

A lawyer and one of the wealthiest black South Africans, Ramaphosa is widely expected to adopt more business-friendly policies, prompting the rand to rise more than any other currency against the dollar since his election as ANC leader on December 18.

It advanced to its highest against the US currency since February 2015 on Wednesday.

* SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Have you considered your options for retirement?

Previous results · Suggest a vote

Loading...