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Mboweni is right person to steer SA finances - Black Business Council

Mboweni is right person to steer SA finances - Black Business Council

Nene made the apology after detailing his meetings with the Guptas at the state capture commission of inquiry last week - until then‚ the meetings had remained secret.

Nhlanhla Nene resigned over discrepancies in his accounts of meetings with a business family at the heart of a corruption scandal, President Cyril Ramaphosa announced on Tuesday.

The communist party praised Nene for refusing to hand South Africa over to what it called the highest bidder, by refusing to sign the nuclear contract, which former president Jacob Zuma wanted to enter into with Russian Federation.

Last week Nene told an inquiry into government corruption he had made numerous visits to the Gupta family, friends of former leader Jacob Zuma accused of unfairly winning state contracts and influencing the firing of ministers.

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.

"I was wrong in meeting the Guptas at their residence and not in my office or at least a public place", his public apology letter read.

"As former governor of the reserve bank, Mr Mboweni brings to this position vast experience in areas of finance, economic policy as well as in governance", he said.

"Public servants at all spheres and levels of government will have no obligation to responsibly manage state fiscal resources under a compromised minister of finance, " Malema said.




"These visits do cast a shadow on my conduct as a public office bearer", Nene said in a statement.

The rand gained 0.9% to R14.72/$ by 5.25pm in Johannesburg, reversing an earlier decline of as much as 1.4%.

Nene, speaking under oath at the hearings, also said that his then deputy Mcebisi Jonas was offered his job after Nene refused to back the nuclear proposals.

This revelation at the state capture inquiry raised serious questions about Nene's credibility, particularly whether the Guptas had any role in his previous Cabinet deployments and whether he at any stage had acted under their instruction.

At the graft inquiry, Nene accused Zuma of pushing policies created to benefit the Guptas, including a massive nuclear power expansion programme.

Opposition parties have called for his resignation.

"(He) will have the advantage of being able to hit the ground running and is, at least, known to market participants, ratings agencies and global financial institutions", it 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.