Sunday, April 9, 2017

ZUMA PLUNGES SOUTH AFRICA INTO A FINANCIAL CRISIS .





As Donald Trump’s woes inexorably grind on, in Southern Africa another drama is rapidly unfolding which too holds the fate of a Presidency. What both Presidential sagas appear to have in common are the drummers that they are marching to have very little interest in the well being of their respective countries. Trump appears to have colluded with the Russians to destroy American democracy and weaken its NATO Alliance while Jacob Zuma, it is argued, is selling out the South African economy to meet the needs of himself and three shady brothers who have a stranglehold on him. Trump’s future depends on what a few Republicans in the Senate might decide and or whether the 2018 midterm elections will show enough disillusionment in him to cut loose his support. Zuma has a healthier back up as he has inherited the party of Mandela, the African National Congress, (ANC), with it a fat legislative majority. He is relying on the fact that enough of them are too beholden to him to switch allegiance. Seventy votes need to abandon ship for a vote of no confidence to succeed. The latter would bring down the Zuma Government.

South Africa with all its wealth and promise is getting closer and closer to midnight as the erratic behaviour of the President careers on.

WHAT PRECIPITATED THE CRISIS

Zuma precipitated a major economic crisis with his recent decision to sack five cabinet ministers and six deputy ministers. The crucial axing was of his Finance Minister Gordhan and his Deputy. Zuma has desperately been trying to control his treasury for some time and has been through this exercise before when he terminated his then Minister of Finance, Nene, in December 2015. Like this time the action caused a run on the South African currency - the Rand. The latter in spite of reported Reserve Bank support has lost ten percent in a few days. On the first occasion Zuma recanted within days and appointed Gordhan as Finance Minister who he has now given the chop. This time his decision is for good.

The beleaguered President has made it quite clear that he is not going back even though Standard and Poor and Fitch have responded to his decision by downgrading South African bonds to junk status. Moodie’s rating group have put South Africa on notice in that they have three months to get their act in order. Zuma has thus signalled that he is prepared to live or die by this cabinet switch barefacedly giving inane reasons for it. Where he differs from The Donald is that is where his explanations end. There are no inane tweets or pathetic pleas of victimization. This is his Constitutional right and that is that.

THE STORY BEHIND IT ALL

The South African media - formal and social has been awash for years over the influence a family have had over Zuma. The Guptas are said to run the country to the extent that individuals are offered Cabinet posts by them. The oft repeated claim is that Zuma and his cabal are in the Guptas’ pockets. Currently the Guptas’ bank accounts have been suspended by the four major banks in South Africa who have claimed that their financial dealings have been “reckless”. At the time of Gordhan’s departure there was ongoing litigation between him and the Guptas’ who wanted to force the then Finance Minister to intercede with the recalcitrant banks on their behalf.

Besides all the stories of graft, cronyism and corruption that have plagued Zuma’s administration there are two major expenditures that Gordhan’s Treasury would not accede to. These are the purchase of aeroplanes and most importantly the creation of three nuclear plants with good old Putin’s Russia. The latter deal runs into billions of dollars and would devastate the country’s economy. The social media buzz is that there are astronomically fat commissions involved.

THE LINE UP AGAINST ZUMA.

The opposition against Zuma is growing exponentially by the day. However, like all democratic politics, change boils down to simple math. You have to have more votes where it matters and in this instance it is Parliament. About seventy ANC members need to switch. There are a number of highly influential power blocks that have come out against the rogue President as well as religious groups, non - governmental agencies and activist societies. But actually getting shot of him is a very tall order.

The Founding Fathers of the New South Africa.

Whatever old guard Mandela support Zuma might have had has publicly vanished. As it so happened the week of the long knifes saw the death of one of Mandela’s life long cadres and friends, Mohammed Kathrada.  The latter spent all twenty - six years as Mandela’s cell mate, was in his government and remained a close friend and confidant. Everyone loved Kathy who was regarded as a gentle soul. Just prior to his death he had written Zuma a very public letter telling him to step down for the good of the country. Kathrada also left instructions that he didn’t want the South African President at his funeral. The former interim South African President Molantehe eulogized the old ANC warrior and read this letter at his funeral.

 Anyone who was anyone in “the struggle” formerly assembled in front of TV cameras and berated Zuma for his disrespect to Kathrada’s memory and neglect of his widow who also served ten years prison time. This constituency – the fathers and mothers of the nation still are held in the highest esteem but none of them have any of the seventy votes needed.

Mandela the great conciliator formed his government with two other major groups who were instrumental in change – the Communist Party of South Africa, (CPSA), and the trade group organization COSATU.

The other alliance members – COSATU and the CPSA

COSATU, which was in the forefront of the struggle within South Africa at the time of the apartheid breakdown, has roundly condemned Zuma. He did not consult them as the original terms of the alliance dictated. The special meeting on the crisis had no qualms in blurting out that Zuma’s motives were not in the best interests of the country. In his cabinet reshuffle they claim he kept incompetents as well as appointing a few more. The CPSA who are in this triumvirate for historical reasons as during the dark decades of apartheid it was the old USSR that backed the ANC while the West acquiesced with the repressive apartheid regime, They sailed into Zuma for betraying the revolution. Between the two groups much sound and fury but few votes.

The Governing ANC.

At the time of Zuma’s midnight coup the ANC appeared divided on the wily President. Three of the six most powerful members of the party were publicly against the President. Most notable of these was Deputy President Cyril Ramaphosa and the ANC Secretary General, Mantasche. The ANC executive are technically a very powerful constituency in the running of the Government. This fact coupled with the fact that several ANC branches have criticized the President and the important ANC Integrity Committee had censored him lead pundits to believe that the impossible might happen – Zuma’s ouster. However after a hastily convened meeting “all the good men rallied round the party”, withdrew their objections and stood united as to what was now defined as an opposition attack on the ANC. The sop that Zuma appeared to throw them would be that the South African energy policy, (a.k.a. nuclear reactors), would proceed at a pace in sync with its needs.

There is growing disillusionment with Cyril Ramaphosa who was once a firebrand in COSATU. Greatly admired by Mandela he was the latter’s choice as his successor. After that defeat he turned into a capitalist deluxe and he is credited as being the richest politician in South Africa. That being no mean feat with the competition around. He was elected as Deputy Premier at the last ANC Convention and has been the hope of the sane. This was the first time he has made a move and in reality, if he was serious at thwarting a Zuma appointed successor in 2018, he had to project an alternative vision. 

Slowly gaining prominence is the ousted Finance Minister Gordhan. He is still a prominent ANC member and his popularity makes it difficult for Zuma to frame him as he attempted to do. The latter claimed that he had an intelligence report that Gordhan and his Deputy were about to sell the country down the river. The ANC Executive rejected that outright in their support of Zuma rather conceding that he had the right to axe Gordhan as he could not relate to him. The elephant in the room in a possible Presidential bid is that Gordhan is of Indian rather than of African origin and as such, in this polarized environment, is unlikely to mount a serious challenge.

However he is the focus within the Party at present articulating the ground roots dissatisfaction. He has roundly condemned incompetence of a Cabinet Minister who nearly left millions without their meagre monthly grants. He also makes no bones that the Guptas run the show pointing to an instance where they offered an ANC member a cabinet position and hundreds of thousands of rands.  

The ANC face serious problems as they are losing support at every turn. At the last municipal election they lost Mayorships in nearly every major city in South Africa.    
      
The Official Opposition

The official opposition is made up of the Democratic Alliance, (DA), which still has a lingering “white” image. They were not helped by recent statements by its former white leader and now Premier of the Western Cape which Province the DA controls. Helen Zillie, who is a remarkably efficient administrator and a revered pioneer of opposition against apartheid, tweeted that everything colonialism did was not all bad. In the current South African political context such a remark is akin to claiming, in America, that slavery was not all that bad.

The ANC pounced on this smearing Zillie as being a paternalistic white saviour. The ANC media led with the Zillie story while Zuma was burning. The DA has responded by dragging the Cape Premier before a disciplinary committee. They are making a serious attempt to gain disaffected ANC supporters and don’t need any reminders that the midwifes of their Party were white. In fairness to the DA their black Africa backing has grown by leaps and bounds in the past few years.

The quixotic Economic Freedom Party, (EEF), a populist Leninist organization completes the opposition. They only represent nine percent of the electorate. They have combined with the DA when it comes to opposing Zuma’s ANC.  Led by an exhibitionist, Julius Malema, they are not taken seriously at the moment.

Suffice to say the motion of no confidence the opposition have proposed is chanceless without ANC support.

Mass Protest   

Friday April 7 was declared a national protest day against Zuma and gatherings were held throughout the country. It was the largest display of public discontent on record. Businesses backed the outpouring of anger with well over half giving their workers paid leave to join in. The upshot is unlikely to sway any of the Parliament’s decision makers which will just add to the general discontent.

THE UPSHOT

Whatever the outcome of the protests South Africa has taken another plunge into banana republic status. Zuma is not going to back off and like Mugabe of Zimbabwe he couldn’t care less what the impact of his perfidy is. Inflation of the currency has little impact on the wealth of those that garner the lion share of money. Nor do the protesters have any votes in the Parliament. 

The massive, broad sweeping national response to Zuma has to have an impact somewhere. Most likely it will weaken Zuma’s hand at appointing a successor as he is curtailed from a future run by term limits. Also the DA have gone into election mode for the 2019 elections already. They appear well organized and funded and are poised to capitalize on their gains made in the recent municipal elections. Ironically they more resemble Mandela’s rainbow nation than do the ANC.

The fact that Pravin Gordhan has not resigned his Parliamentary seat spells trouble for the ANC. He is served notice that he will participate in the No Confidence debate and obviously will vote against Zuma. The ANC will have no alternative other than to throw him out and with him expect a big defection.

All this has brought about murmurings of emigration amongst the minorities. While the ANC radicals will claim good riddance to bad rubbish it cannot be good news. For whatever reason they believe that wealth, know how, skills and tertiary education will magically, automatically be transferred immediately.

PAUSE FOR THOUGHT.

One characteristic both Zuma and Trump have is – they both have no shame! 



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