Windhoek
Namibian analysts yesterday said the landmark ruling by the South African Constitutional Court that President Jacob Zuma must personally pay back the money used for non-security upgrades at his Nkandla homestead would go a long way in shaping how politicians – including Namibian – would handle public funds going forward.
Economists have however ruled out the possibility of the ruling influencing financial markets, saying the Nkandla issue has historically not had such effect.
South Africa’s highest court, in a case brought by opposition parties EFF and DA, ruled that President Zuma violated the country’s constitution when he failed to repay government money spent on his private home, and gave Treasury 60 days to determine how much he should repay.
The country’s anti-corruption body, the Public Protector, ruled in 2014 that excessive money had been spent on Zuma’s rural home in Nkandla in South Africa’s KwaZulu-Natal province. The homestead was undergoing improved security upgrades but it was found that more money was spent on non-security features.
Local political commentator Dr Hoze Riruako said Zuma may appeal the ruling to keep the matter in court. He also predicted uncertainty over Zuma’s political career following yesterday’s ruling.
“It proves that public money was taken and used in a wrong and corrupt way. There’s a case for him to be impeached as president but I don’t see the ANC going that route,” Riruako said.
He said the ruling would send shivers down the spines of Africa’s ruling elite, especially in countries with strong institutions including the judiciary.
“It is very clear the ruling has illustrated independence of the South African judiciary, its neutrality and resistance from political influence.
“It would also serve as lesson to the world and especially Africa where many leaders act like they are above the law.”
“The chickens will always come home to roost and abusive leaders will face the music. Where there is respect for the rule of law, the long arm of the law will always catch up with those who abuse public resources,” Riruako added.
Another commentator, Andrew Niikondo, said the judgement implied that no one is above the law – whether one is the first or last citizen.
“It obviously depends from country to country because the legal structures are not the same. You’ll have a country where somebody does the same but nothing will be done,” he said.
“In some countries, a sitting president cannot be taken to court,” he said. Namibia is one of the countries in which a sitting president may not appear in court to face any charges.
Economic analyst Suta Kavari said the Nkandla issue has had, to date, little or no impact on the fundamentals of the South African economy.
“But now with the increase in political risk in South Africa, following the firing of former finance minister Nhlanhla Nene, and the revelations by deputy finance minister Mcebisi Jonas that members of the Gupta family offered him the job of finance minister before Nene was fired, investors are getting nervous about the prospects for the South African economy,” he said.
With the Namibian dollar pegged to the South African rand, Namibia has fallen victim to most economic fluctuations in the neighbouring country.
“The increase in political risk has led to negative investor sentiment, and we’ve seen investors shift investments away from South Africa,” said Kavari.
“These political developments, coupled with depressed commodity prices and falling real disposable income, have heavily impacted the rand. The rand has been one of the worst performing emerging market currencies this year.”
He said heightened political risk was also flagged as a reason for a potential credit ratings downgrade against South Africa.
South African Chief Justice Mogoeng Mogoeng yesterday said: “The remedial action that was taken against the president has a binding effect.”
He said that independent institutions such as the public protector’s office were “the sharp and mighty sword that stands ready to chop” off the head of the abuse of state resources.
Mogoeng said the public protector Thuli Madonsela was “one of the most invaluable constitutional gifts to our nation in the fight against corruption. She is the embodiment of the biblical David that fights the Goliath of impropriety by government officials.”