S African Finance Minister Testifies Against Zuma over Graft

Johannesburg, Oct 3 (AFP) South Africa's finance minister gave damning testimony Wednesday against former president Jacob Zuma, accusing him of pushing policies designed to benefit the wealthy family at the heart of a government corruption scandal.

Nhlanhla Nene was sacked by Zuma in 2015 in a move that shocked many South Africans and foreign investors as allegations grew that Zuma and the Gupta family were overseeing rampant state corruption.

The Gupta brothers are accused of fraudulently profiting from vast government contracts and energy and transport deals under Zuma, who was ousted earlier this year by the ruling ANC party.

Nene was re-appointed as finance minister by the new president, Cyril Ramaphosa, who has vowed to crack down on graft and to revive growth in South Africa, the continent's most advanced economy.

"I do believe that I was removed from office due to my refusal to toe the line in relation to certain projects," Nene told a judicial inquiry into state corruption.

"Those projects may have benefitted the Gupta family and other close associates of the then president... for instance the nuclear deal and the SAA (South African Airways) strategy."

Nene, speaking under oath at the hearings, said that his then deputy Mcebisi Jonas was offered his job after Nene refused to back a proposed USD 100-billion Russian-built nuclear programme that the Guptas were set to benefit from.

"It makes sense that those who wish to pursue a systematic strategy to raid the public coffers... would attack the role or credibility of the national treasury," Nene said, piling accusations of misconduct on Zuma.

Nene added that pressure was put on the treasury "to conceal dubious or irregular procurement".

He described the cost of the proposed nuclear power stations as "astronomical" and posing a threat to the country's finances.

At a meeting with Zuma in 2015 when Nene declined to back the nuclear project, Nene said he received "a very tense and hostile" response from Zuma who wanted to report on progress to Russian President Vladimir Putin.

The inquiry, which opened in August, is probing allegations that Zuma organised a web of graft at government departments and public enterprises in a scandal known as "state capture".

Zuma was forced to resign in February over allegations centring around the Guptas, who reportedly held such sway that they chose some of Zuma's cabinet ministers.

Former deputy finance minister Jonas has previously told the inquiry that one of the Gupta brothers threatened to kill him after Jonas refused to accept a USD 40 million bribe.

Nene told the inquiry that he met Jonas on a balcony to avoid being bugged by the intelligence services, saying "even when you look at a flower pot, you are not sure."

The Guptas owned a uranium mine, which would have seen profits soar from the nuclear deal, as well as a portfolio of mining, technology and media companies. When Nene was fired in 2015, Zuma replaced him with a little-known loyalist who lasted four days in the job as markets dived and investors pulled out of the country before a more respected minister was appointed.

The India-born Gupta brothers -- Ajay, Atul and Rajesh -- have left South Africa and are now based in Dubai.

Both Zuma and the Guptas, who employed Zuma's son Duduzane, deny any wrongdoing.

The inquiry chair, deputy chief justice Raymond Zondo, urged public officials to give evidence.

"I just hope people will realise it will be better if they come forward on their own... rather than be dragged screaming and kicking," he said.

"This is a very serious issue in our country, the whole country wants to know what happened."

Ramaphosa faces difficult elections next year as public support has declined for the ANC party, which has ruled since Nelson Mandela came to power in 1994 after the end of apartheid rule.

Zuma, 76, has also been charged with 16 counts of graft linked to an arms deal from before he became president. He will next appear in court on November 30. (AFP) ZH

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