Published: Wed, October 10, 2018
Worldwide | By Lisa Hogan

Finance Minister Asked to Resign in Phone Call to Ramaphosa

Finance Minister Asked to Resign in Phone Call to Ramaphosa

On Monday, the rand initially sank more than one percent on a newspaper report that Nene had asked President Cyril Ramaphosa to sack him. Watch the full announcement here.

But Nene revealed to a judicial inquiry last week that he had met with the Gupta business family at their home and offices six times - contradicting earlier statements that he had only met them in passing at social occasions.

In a nationally televised address, Ramaphosa said he accepted Nene's resignation because of "errors of judgment" as a result of a controversy surrounding Nene's testimony in an ongoing graft inquiry in South Africa.

The President appointed a respected former governor of South Africa's central bank, Tito Mboweni, as the new finance minister.

Jonas, a former deputy finance minister, was offered the post on Monday, according to the people, who spoke on condition of anonymity because they aren't authorized to comment.

Mboweni, the nation's fifth finance chief in less than three years, will have to oversee an economy that's fallen into recession and help Ramaphosa rebuild confidence battered by nearly nine years of mismanagement under former President Jacob Zuma.

Nene faced calls to resign after he admitted to visiting the Gupta brothers, friends of the former president Jacob Zuma who have been accused of high-level influence-peddling, and failing to disclose the meetings earlier. The court further ordered her to pay 20% of the legal costs for the Black Sash and Freedom under law - the two non-governmental organisations that took her to court after Sassa said previous year that it would be unble to pay social grants from April 2017. They fled the country after Mr. Zuma's resignation in February and now live in Dubai. He remained active in politics, and was elected to the ruling African National Congress's decision-making national executive committee at a party congress in December. "This averts a potential crisis in the political leadership of the national treasury".

Ramaphosa has made clean governance and the kick-starting of an economy mired in recession top priorities.

"Ideologically and in terms of macroeconomic policy thinking, President Ramaphosa may have appointed the finance minister he always desired in his cabinet".

Like this: