You will not understand President Jacob Zuma’s actions unless you accept the somewhat depressing reality that South Africa now inhabits.
Zuma may once have been master of his own destiny‚ but that point has long passed. He is now a wholly owned subsidiary of the vast Gupta network which has benefited from its association with him‚ his family‚ and the ministers and officials that he has put in place with their blessing.
That is why Zuma is acting to clip the wings of finance minister Pravin Gordhan.
Gordhan is at the centre of two matters which are rapidly coming to a head.
The first is his court action seeking an order that he ought not to interfere in matters between the banks and their clients.
South Africa’s banks – and others such as the Bank of China‚ for that matter – have all given the Gupta companies their marching orders because of their discomfort with certain transactions.
This has led to a liquidity problem for the Guptas and that in turn has caused a liquidity problem for a range of others who rely on the crumbs that fall off the table‚ so to speak.
While the technical‚ legal argument over whether or not the finance minister ought to intervene is interesting‚ the case may be awkward for the Guptas because it will require them to explain a string of transactions listed by the Treasury as dodgy. Under oath. They don’t want that and nor do those at the receiving or giving end of these transactions.
Gordhan’s case was set down for Tuesday and Wednesday this week‚ unless‚ of course‚ he withdraws it. Since the case has been brought by him in his capacity as finance minister‚ there is a quick and easy solution: order him to withdraw it and if this does not occur‚ remove him from the finance ministry.
On cue‚ enter the Guptas stage left with a new affidavit in which they insist that Gordhan‚ and not his attorney‚ be present in court.
The second matter which is coming to a head is that of the payment of social grants.
The Constitutional Court has placed the Treasury at the centre of the process of getting the grants mess sorted out. This will‚ inevitably‚ mean the cessation of the contract between Cash Paymaster Services and the South African Social Security Agency (Sassa). And said business will not be permitted to increase its fees or extract greater profit unless it can persuade the Treasury to allow this. Under Gordhan this is not going to happen.
