Zwane slip not a sign of war, says Zuma

CAPE TOWN — The fact that Mineral Resources Minister Mosebenzi Zwane made an incorrect public statement about a judicial commission of inquiry into banks did not mean the government was at war with itself, President Jacob Zuma said on Tuesday.

The president is engaging with the minister on the matter.

Zwane’s statement falsely claimed the Cabinet had resolved to establish a judicial commission of inquiry into the conduct of banks that had terminated banking relationships with the Gupta-owned Oakbay Investments, when this was not the case.

Zuma told MPs during question time in the National Assembly that the issue should not be blown up into the government being at war with itself. Deputy President Cyril Ramaphosa has said there is such a war under way.

But Zuma rejected the suggestion by DA leader Mmusi Maimane that this was the case and also insisted there was no war between the Presidency and the Treasury.

The question session with the president got off to a stormy start when EFF and Congress of the People MPs walked out because they refused to be addressed by Zuma. Before leading his MPs out, EFF leader Julius Malema said Parliament would be “committing a serious constitutional blunder” if it allowed Zuma to speak.

Maimane asked Zuma what plan of action the government had adopted to avoid a sovereign ratings downgrade.

“We are sending a good signal to investors and rating agencies,” Zuma replied.

He also expressed confidence in South African Airways (SAA) chairwoman Dudu Myeni being able to lift the troubled national airline out of its difficulties.

Finance Minister Pravin Gordhan confirmed on Tuesday that SAA had state guarantees of R19bn after the R4.7bn guarantee recently approved by the Treasury to ensure it was a going concern.

He disclosed that SAA had made a R4.7bn loss in 2014-15 and a R1.8bn loss in 2015-16.

Without the guarantees, SAA would be technically insolvent, Gordhan told MPs. The guarantee would allow SAA to borrow.