Collision Course ‘We think it’s all about this woman’
| Economic horror show unfolds after Nene’s shock axing, with dreaded junk status looming for SA
A FEW hours before his axing as finance minister, Nhlanhla Nene presented a report to the cabinet about the state of the economy.
At the Union Buildings in Pretoria, President Jacob Zuma and his ministers seemed impressed with Nene’s “good” presentation, with everyone leaving satisfied with his updates.
But two hours after the meeting ended, Zuma fired Nene unceremoniously and made the announcement in a statement released after 8pm.
“We were all shocked. We had a cabinet meeting until around 6pm and that man [Nene] gave a very good presentation on the state of the economy.
“I went home to do my work. Then, a few hours later, people started shouting: ‘Breaking news! Breaking news!’ ” a senior minister said.
“When I rushed to the TV, I saw the announcement. We are still shocked. We think it’s all about this woman [SAA board chairwoman Dudu Myeni].”
All indications are that Zuma’s decision to fire Nene is unpopular within the ANC and has resulted in growing discontent with his leadership.
The general feeling among ministers who spoke to the Sunday Times is that Nene was fired for his uncompromising position on SAA and the country’s ambitious new nuclear build programme.
Another senior minister said: “He [Zuma] is the only one who knows why he took the decision. Nobody knew that this was going to happen.
“Even Nene on Wednesday looked very normal during the cabinet meeting, he was composed.
“It is an unpopular decision, and many in the ANC are unhappy, but we will rise from this. The decision is costing us because it has affected the markets and the rand.”
National Treasury officials said it was clear that Nene was clueless about his fate when he attended the cabinet meeting on Wednesday as he had scheduled several important meetings for the rest of the week.
“He had major decisions and announcements to make. It took him completely by surprise.”
CLIPPED WINGS: Nhlanhla Nene and SAA chairwoman Dudu Myeni in February
These decisions included whether to approve the next R10-billion tranche of a bailout for Eskom, providing a guarantee for a Nedbank loan the Post Office needs to keep afloat, and a mooted R20-billion lifeline for higher education.
Treasury officials preparing for the budget presentation in February are said to be left reeling from Zuma’s decision to replace their minister at this late hour.
“Usually all these things are decided by now and the numbers locked down.
“To do this now is crazy. It is causing hypertension,” said a Treasury official.
Officials said Nene reminded them about the importance of their jobs during an emotional farewell to his closest confidants on Thursday.
“Hold the fort. Your job is the most important in the country,” said a deflated Nene.
“I have no regrets. I did my job,” he added.
Treasury officials are also finding it increasingly difficult to sell the spin that South Africa’s finances are being well managed.
New Finance Minister David van Rooyen would have a tough time, said Treasury officials.
Debts running into hundreds of billions guaranteed by the Treasury could be called in as creditors lose confidence in the ability of state-owned entities to repay money they owe, the cost of borrowing would spiral and investor confidence would wane.
“We will be downgraded to junk status. There’s no question about that.”