South Africa’s Zuma Denies Affair With South African Airways Boss

South Africa’s president has replaced the country’s finance minister for the second time in four days.

South Africa’s president, Jacob Zuma, removed Nene, who had been in the post for less than two years, late on Wednesday, giving no explanation.

“I have received many representations to reconsider my decision”.

“As a democratic government, we emphasize the importance of listening to the people and to responding to their views”.

The sacking of Nene, a veteran civil servant in the ministry who was keen to rein in government spending in Africa’s most industrialised economy, has also sparked a sell-off in bank stocks, which have dropped almost 20 percent since Thursday.

Should ratings agencies lower South African sovereign debt below investment grade then the sectors that should “outperform” – putting in a better performance versus their respective benchmarks – are those that behave like “hedges” against weakness in the rand.

South African president Jacob Zuma on Saturday denied rumours he had an affair with the chairwoman of state-owned airline amid media speculation the relationship had led to the sacking of the finance minister.

In a statement, Mr. Zuma said he…

Even though it was Zuma’s prerogative – as his supporters were quick to point out – to hire and fire cabinet ministers, this could not be done against the tide of public and market opinion.

The reason offered for Nene’s removal was that he is to be nominated to head up the African Regional Centre of the New Development Bank that will be based in Johannesburg. “Minister Gordhan will return to a portfolio that he had held proficiently during the fourth administration”, the Presidency said.

The minister had earlier rebuked Dudu Myeni for mismanaging a $62 million dollar deal with Airbus.

However, senior ANC members have called for Mr Zuma to be sacked.

“The new Minister will strengthen the path and continue to support all efforts aimed at improving the lives of ordinary South Africans”, Zuma said.

This is the beginning of the end of Zuma politics – the practice of placing the interests of a small clique of greedy backers ahead of those of the party and the nation.