Nene’s removal ‘reckless’
Jacob Zuma’s surprise axing of finance minister Nhlanhla Nene draws outraged response from the DA.
|||Johannesburg - Wednesday night’s surprise axing of finance minister Nhlanhla Nene has been met with outrage by the official opposition, the Democratic Alliance, while the ruling party has declared its unwavering loyalty to President Jacob Zuma’s decisions.
In a strongly-worded announcement by the DA, the party condemned the removal of Nene and called it a “reckless and dangerous move that further damages our country’s economy”.
South Africa’s economy has been languishing at low growth rates and is now anticipated to hit just 1.4 percent growth this year after gross domestic product contracted 1.3 percent in the second quarter and only managed a 0.7 percent gain in the third quarter, narrowly averting a recession.
The official opposition says Nene’s axing was “accompanied by no reasons for such a drastic move”.
However, the official ANC position is supportive of Zuma, noting in a statement issued late on Wednesday that it respects his decision to replace Nene with relative unknown David van Rooyen.
“The president has exercised his constitutional prerogative to appoint a new minister, who we believe has what it takes to lead the ministry.”
In the statement, issued by spokesperson Zizi Kodwa, the ruling party says “we believe his experience and tenure as the ANC National Assembly whip for both finance portfolio committee and [the] ANC caucus' economic transformation cluster will enable him to provide the necessary leadership in the department.
“We wish the new minister well in his responsibilities. The former minister remains a valuable resource in the organisation and we accordingly commend him for the excellent service he rendered to the department and the people of South Africa.”
Nene, who had held the post for less than two years after replacing Pravin Gordhan, had clashed with some government colleagues over pay increases for workers, proposals to build a nuclear power industry and plans to expand the state carrier, South African Airways.
His latest move was to insist that SAA stick to an outsourcing deal with Airbus after the embattled airline, which has repeatedly had government bailouts, tried to renegotiate with Airbus over the contract.
Nene has had a difficult task steering the economy, as, on December 4, Fitch Ratings downgraded the country’s credit rating to BBB-, one level above investment grade, while Standard and Poor’s cut the outlook on its equivalent rating to negative, bringing the nation a step closer to junk status.
Van Rooyen, or Des as he is known, is a former mayor of Merafong municipality in Gauteng and now serves on Parliament’s finance committee and the ANC’s economic transformation group.
He became involved in politics in the 1980s and joined the armed wing of the ANC during its struggle against white minority rule. Van Rooyen held several leadership positions in the party after it took power in the first all-race elections in 1994, according to the website of the People’s Assembly, a group that monitors Parliament. His qualifications include a master’s degree in public development and management and another in finance from the University of London, the website said.
The DA says “Van Rooyen has routinely delivered politically charged speeches and never addressed pressing economic issues, such as fiscal consolidation”. It adds Nene’s redeployment is likely because Nene stood for fiscal prudence.
While the country awaits further clarity, the rand has been hard hit - falling to a record low of R15 to the dollar.
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