Zuma faces graft trial after ruling

BLOEMFONTEIN – South Africa’s appeals court yesterday opened the way for prosecutors to pursue graft charges against ruling party leader Jacob Zuma only months before he is expected to stand for election as president.

The appeals court overturned a lower judge’s decision in September to dismiss graft charges against Zuma, leader of the African National Congress, which faces its biggest electoral challenge in a vote expected in April.
Re-opening the case will damage Zuma’s image and could increase uncertainty in Africa’s biggest economy. Yesterday, the rand currency fell to a one-month low as investors worried about the impact of the ruling on the economy.
The September ruling led to the ANC ousting former President Thabo Mbeki, Zuma’s long standing rival, but also split the party which has been in power since apartheid ended in 1994. Mbeki supporters have since formed a dissident party, COPE, which poses the first real challenge to the ANC in 15 years.
The Supreme Court of Appeal said in its judgement that High Court judge Chris Nicholson made several errors in a September 12 2008 ruling in which he dismissed bribery, fraud and other charges against Zuma.
‘The appeal is upheld with costs, judge Louis Harms said in reading the judgement of five appeal court judges. The appeal court said Nicholson had overstepped his authority in several instances.

The National Prosecuting Authority welcomed the ruling and said Zuma, who has been dogged by graft allegations for years, remained charged.
The rand currency weakened sharply to a one-month low of 10,0660 against the US dollar from 9,9195 before the ruling and analysts said the decision had increased political risk ahead of the general election expected around April.
‘Investors fear that a renewed focus on politicking will divert attention from the all-important reassurance they seek that economic policy will not change in a meaningful way under the new leadership,’ said Razia Khan, regional head of research for Africa at Standard Chartered.
‘Those reassurances are now likely to take a secondary role, as the battle for grassroots support intensifies.’

PRESIDENT ZUMA?

Yesterday’s ruling is unlikely to stop Zuma being elected but could strengthen the challenge from COPE, seen as more friendly to big business than Zuma’s trade union and communist allies.
”The balance of power in the ANC also makes it unlikely that Zuma will be forced out as party president before the election. Although the judgement is unlikely to sway loyal ANC members, undecided voters could vote against the ANC if Zuma is facing corruption charges as the election takes place,’ said Mike Davies, Middle East and Africa analyst at Eurasia Group.
The court decision may vindicate Mbeki, who was pushed out of office by the ANC after the judge that threw out the graft charges against Zuma suggested Mbeki had meddled in the case, an allegation he denied.
The decision yesterday dealt a blow to the ANC just two days after it launched its election manifesto, promising to create jobs, improve education and health and fight crime, crucial issues that have been overshadowed by party power struggles.
‘It is most disadvantageous to them, I think, to enter an election campaign period with question marks on the head of their leader,’ said political analyst Susan Booysen of the University of the Witwatersrand.
‘This is at a time when we really see their campaign manifesto critically assessed in a way that is unprecedented. It’s not just by analysts, it’s by voters out there too.’
Zuma has strong backing from South Africa’s powerful Cosatu trade union federation and the South African Communist Party (SACP), an alliance that makes investors uneasy.
‘Cosatu remains convinced that the whole prosecution process has been politically motivated and will continue to demand the dropping of all charges,’ Cosatu said in a statement.
The ANC said the ruling would not affect its decision to name Zuma as the presidential candidate for the 2009 election.
‘The ANC and its president reserves the right to pursue all options available in law,’ it said in a statement.
Zuma can still appeal against the ruling in the Constitutional Court – South Africa’s highest court.
Sheila Meintjes, head of political studies at the University of the Witwatersrand, said the case would hurt South Africa’s image abroad.
‘Internationally of course South Africa would face a very difficult situation if its president in waiting were to be accused. It would be much better for Mr Zuma to recuse himself during this electoral process,’ she said. See also page 10.
-Nampa-Reuters