Why I refused to sign off on nuclear deal despite Zuma pressure – Nene

Finance Minister Nhlanhla Nene told the the commission of inquiry into allegations of state capture on Wednesday morning that he believes that he was axed as finance minister in December 2015 because he refused to toe the line on certain projects that would benefit the controversial Gupta family and their close associates.

It’s the first time he has broken his silence on his axing.

Later in his testimony he dropped the bombshell that he twice refused to sign a letter that would have paved the way for a nuclear deal with Russia that then president Jacob Zuma was putting pressure on him to sign. The one-page letter was allegedly produced by then energy minister Tina Joemat-Pettersson, which needed his signature.

He said he told Zuma he could not sign the letter without first interrogating the financial and fiscal implications, and was sure Zuma was very angry with him.

The Guptas have been linked to the nuclear deal due to their acquisition of a uranium mine in South Africa.

Nene said he refused to sign simply on the basis that he was following legislation and because of concerns about the implications. He mentioned that cabinet had not approved any funding model for the project, which could have ballooned beyond R1 trillion.

Other government officials, such as then minister of intelligence David Mahlobo, had allegedly accused him of insubordination. He also named then fellow minister Maite Nkoana-Mashabane of calling him insubordinate, though the word was not specifically used.

Nene told the commission these projects included the nuclear deal and the South African Airways strategy many believe would have financially benefited the Guptas and anyone associated with them.

Nene testified that he based this belief on former deputy minister of finance Mcebisi Jonas’ allegation that one of the Gupta brothers had offered him a R600 million bribe and the position of finance minister in October 2015.

During his testimony, Jonas said the removal in December 2015 of Nene as finance minister, whom Zuma replaced with Des van Rooyen, dealt a blow to South Africa and wiped out billions of rands worth of investments.

”The markets tumbled, billions were lost, the rand weakened … the country took a downward trend from there.”

Commission evidence leader Phillip Mokoena had asked Jonas: “Tell us, how did that affect the credit ratings?”

Jonas replied: “The ratings were very bad. We were probably in the worst state as a country since the dawn of democracy. I don’t think we have recovered from that. The situation was aggravated, I think, by the talks to take out debt to finance the nuclear deal…we [Treasury] believed that South Africa could not afford nuclear as it was structured. It was not justifiable or ethical to raise that huge amount of debt for our future generation [to grapple with].”

Van Rooyen, an ANC backbencher at the time, was replaced four days later with Gordhan following significant public pressure on Zuma. Zuma later fired Gordhan and Jonas in 2017.

Nene is expected to give further details about his meetings with the Gupta brothers during his first term as finance minister.

The Economic Freedom Fighters have claimed that Nene worked closely with the controversial Gupta family and negotiated a number of business dealings with them. During his testimony, Nene flatly denied any such allegations.

Nene’s testimony continues.

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