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Nene: Presidency offers explanation

‘Fiscal prudency will remain’.

After two days of unprecedented value destruction, President Jacob Zuma moved on Friday afternoon to explain his sacking of former finance minister Nhlanhla Nene. 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.

Zuma fired Nene on Wednesday night without giving any reasons and appointed as his successor relatively unknown ANC MP Des van Rooyen. This led to the dramatic weakening of the currency that briefly breached R16 to the dollar on Friday and carnage on the JSE where especially banking shares fell to record lows.

In a statement issued by the presidency late on Friday afternoon the following was said: “The urgency of the changes in the leadership of the National Treasury was occasioned by the need to send nominations to Shanghai, of the head of the African Regional Centre of the New Development Bank/BRICS Bank, to be based in Johannesburg.

“Mr Nene is our candidate for this position. We are fully backing his candidature, knowing full well that he will excel and make the nation proud in his next assignment.”

Zuma did not explain why Nene was not retained until it was clear whether his candidacy was successful. It is also somewhat surprising as Nene has indicated, since his retrenchment, that he will reassume his position as MP in Parliament.

In a clear effort to calm the markets, Zuma said Van Rooyen’s appointment does not signal a change in the government’s fiscal stance.

“Government will not abandon the fiscal path that we have chosen in the last few years. Maintaining a prudent fiscal position remains one of government’s top priorities.

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

Deputy finance minister Mcebisi Jonas, who was overlooked as Nene’s successor, will support Van Rooyen, Zuma said, pointing out that Jonas “carries many years of experience in the economic cluster”.

Zuma said they are supported “by the hard-working and capable National Treasury team, led by the Director-General, Mr. Lungisa Fuzile.”

Zuma thanked Nene “for his sterling contribution to the National Executive and to taking forward the goals of building a better life for all our people. Government remains committed to adhering to the set expenditure ceiling while maintaining a stable trajectory of our debt portfolio, as set out in the February 2015 Budget.”

The statement said government’s commitment to diversifying the economy, reducing the cost of doing business and utilising resources much more efficiently to enable a more inclusive economic growth remains important. “We will continue to improve the budget process in order to maintain our international reputation as a global leader in budget transparency. South Africa continually seeks to enhance the expansive information it provides to its citizens on how public resources are generated and used with the aim of improving budget participation. 

“To support the economy, government is committed to sustaining public sector capital investment, by attracting private sector capital into public infrastructure projects.”

Zuma referred to the national carrier by saying government remains committed to support State-owned companies, including SAA, in a fiscally sustainable manner. “We assure the nation that nothing will be done, in supporting State-owned entities, that runs contrary to the fiscal prudence that our country is renowned for.

“No State-owned entity will dictate to government how it should be assisted.”

Zuma said the implementation of the National Development Plan remains the cornerstone of the economy and government will continue to address constraints to economic growth.

He said the economic cluster will meet on Tuesday, December 15 as announced by Minister in the Presidency Jeff Radebe to prepare for a special cabinet meeting on the economy, which will take place on Friday December 18. “This will enable us to focus specifically and exclusively on the current economic climate and on the country’s response.”

In a separate statement, the Presidency rejected speculations about further cabinet moves and asked that cabinet be given space to do its work.

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Not good enough Jacob. I may believe you if the new boy ;

1. Declines SAA rescue, and the airbus lease deal
2. Vetoes your nuclear deal with ROSATAN .
3. Reign s in Government spending and theft – ha ha

Firstly this is again a question of priorities , which comes first BRIC’s or SA Economy ?? Secondly was there no other suitable Candidate in the whole of SA for this Appointment ?? Seriously the man must rate the Intelligence of ordenary people very low …….. THIS EXPLANATION WILL DO FURTHER DAMAGE TO AN ALREADY VOLATILE SITUATION .

The intelligence of the ordinary people is very low. Some 60% plus will keep voting for the clown and his party, in the vague hope that his promises will come true.

Yeah right, this B.S is nothing but a lousy, supposed panelbeating exercise,

But, I do wonder if maybe this is Jacob Zuma starting to panic a little bit, realising that he is in way over his head ?
Does the beast actually have a conscience ?
Nobody could’ve foreseen the carnage that has ensued over the past 2 days, even by his very own pathetic standards, this was just unprecedented.

I keep harping on about the speech after the main speech on Wednesday, a pity, it would appear that very few people bothered watching it, because that was Jacob Zuma’s lunacy at it’s very best, and makes this ridiculous so-called explanation here seem even further ‘far-fetched’.

“Fiscal prudency will remain”.
So no silly nuclear power station nonsense, no outright purchase of Airbus 330s via a Myeni/Zuma crony; no NHI madness…
Sounds good – for now.

Hallo Zuma

Do you actually think that anybody with any brain at all believes your reason for getting rid of Nene.
If you do think people believe you, you are either completely out of touch with reality or seriously misguided (to be as polite as possible ).
Perhaps the real reason for your statement is that it has now become apparent to even you or perhaps those who help you spin your speeches, that people are beginning to realize that what you are doing is destroying South Africa.
Now, two days after you announced that you had got rid of Nene and everybody except the dumb and the dead have seen what chaos your actions have caused, you offer this laughable and transparent attempt at damage control. … It really just makes matters worse.

The South African public want to know who the bare dominion is on the aircraft leasing deal. Its blatantly obvious to everyone that Nene was standing in the way of corruption. Now you’ve finally installed someone willing to rubber stamp your dodgy deals. Rest assured, one day the chickens will come home to roost. We are watching you. We will uncover the truth. You will eventually pay the price.

Which ANC leader is going to stand up again Zuma and save our nation and our economy before its too late? PLEASE BE A HERO !!!

Come on guys, he had a meeting with his cronies, it was adjourned and everyone went home, JZ diligent as ever returned to his office and opened mail. There it was the proposal for Nene to be the head of brics Africa.

So he had to let him know, but the first lie was that he was being moved to a strategic appointment within government.

this turkey is now so deep in it he just thrashes around. Dudu wound him up and threatened to withdraw her favors so he decided he could not live without them.

He needs the big book thrown at him, charge him along with the past Eskom management with treason, he has effectively junked us all. The long term effects are still to play out, next year we will be importing grain/food at R17 to the $ instead of R13.50. Who will it hit hardest? The poor rural people. Government pension adjustments?? Downwards? Will they realize that it is his fault completely. No blaming van Riebeeck this time, this can be laid at his door, he achieved in a day what took Bob 25 years to do.
The complete dictator, wait and see what is next, he has only just started, bank accounts, farms, mines just what he wants.
He has trashed the oath of office put his girlfriends toys ahead of the country. The cabinet must fire him, then he can be charged with treason and the endless list of other crimes he has committed.

Well what is more important, BRICS bank or South Africa?

Brics is just an acronym with no substance whatsoever. The person who coined it says so. In any even all the BRICS are failing with a minor exception in India which has made a substantial positive change to it’s leadership.

Is Zuma clinically insane?

“All who have ever written on government are unanimous, that among a people generally corrupt, liberty cannot long exist”.

“They defend their errors as if they were defending their inheritance”

– Edmund Burke

Great quote from Burke. We now have to contend with another berk. BTW why has Nene’s removal been described in the media as fired, sacked or dismissed? You don’t move someone who has been fired to another “strategic” post. Or was it just media hype?

The President’s bootlickers and mindless supporters probably believe all this bull, but the rest of us know what drives him and he won’t be able to LAUGH THIS ONE off.

You cannot trust an unscrupulous opportunist, who is a liar to boot.

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