Finance Minister Asked to Resign in Phone Call to Ramaphosa

Finance Minister Asked to Resign in Phone Call to Ramaphosa

Finance Minister Asked to Resign in Phone Call to Ramaphosa

President Cyril Ramaphosa has yet to respond to mounting calls to fire Finance Minister Nhlanhla Nene.

South African Finance Minister Nhlanhla Nene resigned Tuesday over undisclosed meetings with a business family at the heart of a corruption scandal, dealing a blow to President Cyril Ramaphosa. Khusela Diko, the president's spokeswoman, said the two men have discussed the matter.

Mboweni's tweet was posted in April this year. He is urging those ministers and other senior officials to follow Mr. Nene's example by volunteering to give testimony at the national inquiry into corruption so that their conduct can be reviewed.

"I am confident that Mr Mboweni will provide that leadership‚" he said.

There are fears however that a new finance minister, three weeks before the tabling of the Medium Term Budget Policy Statement - the so-called mini-budget - could lead to more political turbulence. Government bonds and banking stocks also gained.

Nene admitted to meeting the controversial Gupta family at their Saxonwold residence at the state capture commission of inquiry last week.

The Guptas have been accused of having undue influence over former president Jacob Zuma and his executive, as well as operations at state owned enterprises which it used to loot billions from SA.

The ANC forced Zuma to quit as president in February after nearly nine years in office, clearing the way for his 65-year-old deputy and party leader Ramaphosa to take over.

Zuma ruled for nearly nine years before the governing African National Congress forced him to quit in February and replaced him with his 65-year-old deputy and party leader, Ramaphosa.

While Mboweni has a good reputation, doubts will continue to linger over Ramaphosa's ability to clean up after Zuma's scandal-marred tenure, according to Guillaume Tresca, a senior emerging markets strategist at Credit Agricole CIB from Montrouge, France.

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. "Foreign investors, after a well-managed political transition, have been disappointed and the links between the Guptas and Nene shows it is hard to erase the past".

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