The inquiry into State Capture heard that former President Jacob Zuma had piled pressure on National Treasury to approve a multi-billion rand nuclear deal with Russia.
Finance Minister, Nhlanhla Nene, told the State Capture Commission on Wednesday that he was scolded by former president Zuma for ''not doing what he was requested to do''.
Nene testified at the state capture commission of inquiry about a side meeting during the 2015 BRICS (Brazil, Russia, India, China and South Africa) summit in Russia. The then new energy minister Tiena Joemat-Pettersson, had in September 2014 announced that a framework had been signed between South Africa and Russia, laying the foundation for nuclear procurement. Nene said this was done despite Treasury's objections after analysing the feasibility study on nuclear procurement.
Nene, Zuma, and Joemat-Pettersson were in a meeting on the sidelines of the summit. Nene said he had planned to brief Zuma on the summit and a forthcoming one-on-one meeting with Russian President Vladimir Putin.
''Mr Zuma proceeded to discuss the issue of nuclear procurement in South Africa. In essence, Mr Zuma wanted to know what progress the minister of energy and I had made on the nuclear deal as Cabinet had directed us to prepare a memorandum on, among others, the financial implications and funding model of the nuclear programme. I indicated to Mr Zuma that the absence of details regarding the proposed financing of the project, it was difficult to make progress with the memorandum,'' said Nene.
''I was surprised that Treasury officials were not allowed in the meeting, even though the director-general of Department of International Relations was present. During this meeting, Mr Zuma criticised me for not finalising the financial aspects of the proposed nuclear deal with Russia. He was not happy that I was not doing what I was supposed to have done a long time ago so that he could have something to present when he meets President Putin for their one-on-one meeting.''
Joemat-Pettersson, for her part of the meeting, had prepared a one-page letter to be signed by Nene and addressed to Russian authorities. Nene said the letter was a guarantee to Russians on nuclear procurement if the Russians agree to fund it. Nene said he refused to sign the letter.
''Although it was couched in letter form, I was reluctant to sign as my signature would have resulted in a binding financial commitment by the South African government. I said to Ms Joemat-Pettersson that I would not append my signature but if she wants to sign it, she must go ahead alone but I cautioned that whatever she ultimately signs should not have any financial commitments. She insisted that it had to be a joint decision of both the ministers of energy and finance. She was not satisfied with my response but agreed to revise the letter.''
The country would have to cough up R250 billion to finance the envisaged nuclear deal with Russia, said Nene, which would have implications on other government departments' budgets. In addition, the State would have to borrow more money to finance the deal. Joemat-Pettersson then approached Nene hours later with a revised letter, but he refused to sign again as the implications on the country's public purse remained.
Zuma subsequently fired Nene in December 2015 and replaced him briefly with the lesser-known backbencher, Des Van Rooyen. Attempts by the Guptas to bribe Nene's then Deputy Mcebisi Jonas and make him finance minister were derailed as Jonas' refused to do their bidding.
Van Rooyen was removed within a few days and replaced with current Public Enterprises Minister Pravin Gordhan who was also fired by Zuma last year and replaced with Malusi Gigaba, the country's current Home Affairs Minister.
Nene was reappointed South Africa's Finance Minister in February this year after Zuma was deposed and replaced by Cyril Ramaphosa.
- African News Agency (ANA)
