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South Africa's Zuma survives move to oust him - media

South African President Jacob Zuma arrives for the official announcement of the munincipal election results at the result centre in Pretoria, South Africa, August 6, 2016. PHOTO BY REUTERS/Siphiwe Sibeko
South African President Jacob Zuma arrives for the official announcement of the munincipal election results at the result centre in Pretoria, South Africa, August 6, 2016. PHOTO BY REUTERS/Siphiwe Sibeko
By TJ Strydom
29/11/2016

JOHANNESBURG (Reuters) - South Africa's scandal-plagued President Jacob Zuma has survived a move by some members of his party to hold a no-confidence motion against him, local media reported on Tuesday without naming sources.

The rand sank more than 1 percent on the reports which dashed many traders' hopes of a swift resolution to months of political uncertainty in Africa's most industrialised economy. 

Tourism Minister Derek Hanekom had proposed holding the vote to effectively oust Zuma at a meeting of the African National Congress's (ANC's) governing committee, Beeld, an Afrikaans-language daily had reported.

But the party's National Executive Committee (NEC) meeting ended late on Monday without a formal vote, Beeld said. 

It was not immediately clear if the committee had actively decided to back Zuma through a less formal decision-making process, or if it had just dropped the matter all together.

The ANC said it will hold a media briefing at 1200 GMT on Tuesday to give details about the NEC meeting. 

Zuma's presidency has been plagued by accusations of corruption. The nation's anti-graft watchdog this month asked for a judge to investigate alleged influence-peddling by a wealthy family Zuma has called his friends. 

The report by the Public Protector watchdog, released on Nov. 2, focused on allegations that businessman brothers Ajay, Atul and Rajesh Gupta had influenced the appointment of ministers. Zuma and the Gupta brothers have denied any wrongdoing.

The rand's fall reversed a rally on Monday that traders said had partly been built on hopes of a resolution to the building political crisis. 

"The rand has been strengthened by the pressure on the president to go, outperforming strongly yesterday. Some reversal is likely today but expect some of the gains to hold," Rand Merchant Bank analyst John Cairns said in a note.

Analysts said Zuma's hand would be weakened by the challenge even though he had survived the vote - other media reports said at least four ministers had turned against him.

 

"POLITICAL NOISE"

Finance Minister Pravin Gordhan, who is also a member of the NEC, declined to answer questions about the no-confidence debate on Zuma while speaking to media in Johannesburg.

He said the recent affirmation of South Africa's investment grade by Fitch and Moody's showed that the country was doing well despite "political noise... there are good things that are happening," he told media after meeting business leaders.

With the economy expected to grow by only half a percent this year, South Africa has been racing to avert a downgrade of its sovereign debt to sub-investment status, which would raise its borrowing costs and deter investment.

Deputy President Cyril Ramaphosa called for calm in a speech to local government officials in Johannesburg. 

"Recent events within the state have raised concern in many quarters about the direction of the country and the stability of its institutions," he said without elaborating.

Since taking office in 2009, Zuma, 74, has survived several corruption scandals with the backing of top echelons of the ANC.

In March, the Constitutional Court ordered Zuma to repay some of $16 million spent on enhancing his Nkandla home in rural KwaZulu-Natal province. Zuma, who weathered a motion of no-confidence in parliament over the cost of the renovations, has since paid back more than $500,000 as required by the court.

But near record unemployment has exacerbated discontent with his government, which also struggled to end weeks of violent student demonstrations over the cost of university education.

Separately, the Gupta family asked a court to force a financial regulator to give the family details concerning the closure of its business accounts, which were terminated by four major banks earlier this year. Zuma last week told parliament that the banks' action was "suspicious".

The banks refused to make public their reasons for closing the accounts. Analysts have said the banks were likely prompted by concerns about reputational risk. 

 

(Additional reporting by Mfuneko Toyana and Olivia Kumwenda-Mtambo; Writing by James Macharia; Editing by Andrew Heavens)

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