South Africa finance minister: Zuma fired me for refusing to back Gupta deals

FAN Editor
South Africa's Finance Minister Nhlanhla Nene looks on ahead of the Judicial Commission of Inquiry probing state capture in Johannesburg
South Africa’s Finance Minister Nhlanhla Nene looks on ahead of the Judicial Commission of Inquiry probing state capture in Johannesburg, South Africa October 3, 2018. REUTERS/Siphiwe Sibeko

October 3, 2018

By Mfuneko Toyana

JOHANNESBURG (Reuters) – South Africa’s Finance Minister Nhlanhla Nene told a judicial corruption inquiry on Wednesday that he was fired by former president Jacob Zuma for refusing to approve a $100 billion nuclear power deal with Russia in 2015.

Nene is the highest profile figure to give evidence at a probe into alleged influence-peddling by the Gupta family, friends of Zuma, who are accused of using their relationship with the former leader to unduly win state contracts.

Zuma has repeatedly denied accusations by his opponents that he pushed for a deal with President Vladimir Putin at a BRICS summit in 2015 for Russia to build a fleet of nuclear power stations at a cost of up to $100 billion.

Opposition politicians and local investigative journalists say the proposed deal – which would have been the biggest state contract in South Africa’s history – would have included huge kickbacks for Zuma and the Gupta family.

The Indian-born brothers – Ajay, Atul and Rajesh – have been accused of using their ties with Zuma to siphon off billions of rand in state funds and of inappropriately influencing cabinet appointments.

They left South Africa earlier this year around the time Zuma resigned under pressure from his own party and the authorities are seeking their return to face prosecution.

Nene, in the most detailed public account of the nuclear negotiations, said Zuma became hostile toward him at a meeting at the summit when he refused to sign a guarantee letter Zuma wanted to present to Putin while in Russia.

“It was a very tense meeting that ended with us just being instructed by the president to go and find a solution, which we didn’t find,” Nene told the inquiry.

“I told the president in the meeting that I could not sign the letter without having first interrogated the financial and fiscal implications”

A spokesman for Zuma did not immediately respond to a request for comment.

Earlier, Nene told the inquiry he lost his job for not approving contracts that would benefit the Gupta family, particularly the Russian nuclear deal.

“I do believe I was removed as minister of finance for my refusal to toe the line in relation to certain projects,” he said.

“In hindsight, it seems that those projects would have benefited the Gupta family and other close associates of the then president.”

The long-awaited inquiry into allegations the Guptas used ties to Zuma to win billions of rands’ worth of government contracts opened last month with witnesses testifying that the brothers had tried to bribe them or had threatened them.

Deputy Chief Justice Raymond Zondo leads the public inquiry, which is empowered to make recommendations for prosecutions.

(Additional reporting by Alexander Winning; Writing by Joe Brock; Editing by Richard Balmforth)

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