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South Africa's finance minister Nene quits over Gupta scandal

Press Trust of India  |  Johannesburg 

South African Nene resigned Tuesday after public outcry over his undisclosed meetings with the members of the family, who have been accused of corruption.

said that he had accepted Nene's resignation "in the interests of good governance" has replaced him with former of the Tito Mboweni.

Nene, who was seen as one of Ramaphosa closest allies,

had admitted before a judicial inquiry last week that he had failed to declare that he had visited the family at their residence and business premises several times.

Nene had apologised after giving testimony to the inquiry, which is probing allegations of corruption under

former Jacob Zuma's involving the three brothers.

The Gupta brothers, now all out of the country, stand accused of unduly influencing Zuma in his Cabinet appointments in order to secure lucrative state contracts irregularly.

The family arrived in from Saharanpur in two decades ago and amassed a fortune in the IT and mining sector, but a number of senior officials, inclusion some former and current ministers, are being accused at the Commission of being complicit in their allegedly irregular dealings.

Several former ministers have also spoken out about how they were summoned to the Gupta home to be offered ministerial positions before Zuma announced them.

Nene had apologised for having been indiscreet in not declaring that he had met the at their sprawling family compound in and at their office complex in Midrand rather than at his own offices or other neutral place.

Nene visited the Guptas on a number of occasions between 2010 and 2014, when he was first Deputy and later of Finance.

The former minister's admission at the raised doubts among opposition parties and the business sector about his credibility, although Nene has denied having done anything illegal or aiding the Guptas in any way during his seven meetings with them.

Earlier on Tuesday Public Protector Busisiwe Mkhwebane announced that she would launch an investigation into whether Nene had breached the Ethics Act following disclosures that his son received a substantial investment and referral fee from the state-owned (PIC) while his father was at the of the organisation.

Both the PIC and Nene snr have denied any irregularities in this process, but it further dented confidence in the South African economy which sent the struggling rand currency tumbling.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, October 09 2018. 21:50 IST