South African ministers sacked by Zuma resign

JOHANNESBURG: Three cabinet ministers removed by President Jacob Zuma in a reshuffle last week have quit as lawmakers of his African National Congress party ahead of a vote of no-confidence in the president which the ANC has vowed to defeat.

Mcebisi Jonas, an outspoken critic of government corruption who was deputy finance minister until Zuma sacked him a week ago, resigned as a member of parliament on Thursday, the ANC said. Former energy minister Tina Joemat-Pettersson and ex-transport minister Dipuo Peters, both axed in the reshuffle, also quit, the party said.

The ANC has rejected calls from opponents and some long-time political allies for Zuma to resign after the cabinet changes — particularly the sacking of Pravin Gordhan as finance minister — cost the country one of its investment-grade credit ratings.

South Africa’s rand has tumbled more than 12 per cent since March 27 when Zuma ordered Gordhan home from overseas meetings with investors. Jonas made headlines last year when he said that he had been offered the finance minister’s job by members of the Gupta family, Indian businessmen who have close ties with Zuma and have been accused of influence-peddling. Zuma and the Gupta family have denied any wrongdoing.

In another blow, the Treasury said its Director-General Lungisa Fuzile, who is well respected in financial markets and worked closely with Gordhan and Jonas, would leave after new Finance Minister Malusi Gigaba takes the reins. Gigaba has declared plans to redistribute wealth in the economy to poor black people as part of a programme of “radical socioeconomic transformation” promised by Zuma.

Fears that budget discipline could falter under Gigaba have contributed to market jitters, but he has assured investors that he will maintain the policies established under Gordhan.

Zuma, whose decision to fire Gordhan outraged opponents and some allies, and was cited by Standard & Poor’s as a reason for its downgrading of South Africa’s credit rating to “junk”, said again on Thursday that fiscal policies would be retained.