THE DISMISSAL OF MINISTER NHLANHLA NENE

President Zuma’s decision to dismiss Minister Nhlanhla Nene as Minister of Finance may signal a catastrophic turning point for South Africa’s already ailing economy. The Ministry of Finance and the Treasury have thus far been the main - and perhaps the last - bulwarks against unrestrained and profligate state expenditure. Minister Nene has maintained probity in the management of state finances and tried, with courage and distinction, to hold the line against irresponsible state expenditure.

It is widely believed that his opposition to the President’s plans to spend more than one trillion rand on Russian nuclear reactors and the firm line that he took in countermanding the highly suspect plans of the SAA Board Chairperson, Dudu Myeni, to reopen complex contracts for new aircraft, have led to his dismissal. Ms Myeni, a close confidante of President Zuma, is also the Chairperson of the Jacob G Zuma Foundation.

The President has a constitutional right to appoint and dismiss cabinet ministers. However, his decision to dismiss Minister Nene and to appoint in his place an inexperienced and virtually unknown backbencher, David van Rooyen, is a matter for the deepest concern.

Statement issued by Dave Steward: Executive Director, FW de Klerk Foundation, 10 December 2015