Mbeki cleared of 'intefering' in Zuma case, fresh charges loom

Mbeki cleared of 'intefering' in Zuma case, fresh charges loom

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Posted to the web: 12/01/2009 09:46:16
SOUTH Africa's Supreme Court of Appeal on Monday overturned a ruling that tossed out corruption charges against ruling party chief Jacob Zuma, opening the possibility of new prosecution.

The ruling dealt a major blow to Zuma, leaving graft charges hanging over his head as he leads the African National Congress (ANC) into general elections, in which he is a frontrunner for president.

Judge Louis Harms read out the unanimous verdict of five Supreme Court judges in a nationally televised hearing, saying the lower court had "overstepped the limits of its authority" by hinting at political interference in the case.

Former president Thabo Mbeki and two of his justice ministers would likely have been criminally charged if the Supreme Court had confirmed Judge Chris Nicholson's ruling that they interfered in Zuma's prosecution.

Zuma was charged in 2005, but that case was struck from the roll in 2006. He was recharged in December 2007 and on September 12 was vindicated by Nicholson.

Nicholson's judgement set the cat among the pigeons.

Within days, Mbeki had lost his job -- which he contends was because of Nicholson's inferences of political meddling in the charging of Zuma.

But Judge Harms struck out the high court's findings, saying they had been "gratuitous".

Allegations that Mbeki had meddled in the case "were not based on any evidence or allegation", he added, and likened the judge to a football referee who "took his eye off the ball".

The National Prosecuting Authority welcomed the ruling and said Zuma remained charged.

Analysts said the decision increased political risk in Africa's biggest economy ahead of the general election expected around April. The rand currency weakened sharply to a one-month low of 10.0250 against the dollar from 9.9195 before the ruling.

"The markets have already reacted somewhat negatively, because this heightens political uncertainty and risk in the near-term," said Razia Khan, regional head of research Africa at Standard Chartered.

"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. Those reassurances are now likely to take a secondary role, as the battle for grassroots support intensifies," Khan added.

Monday's ruling would be unlikely to stop Zuma being elected but could strengthen the challenge from a new party of ANC dissidents called COPE (Congress of the People), generally seen as being more pro-business than Zuma's allies.

The ANC said the ruling will 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 to the appeals court ruling in the Constitutional Court -- South Africa's highest court.

Zuma launched the ANC's manifesto for elections to be held in March or April on Saturday. The ANC is expected to win a majority.
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