Its no more news that like in other countries, South Africa’s economy is facing huge challenges, leading to a draw back of its currency – the Rand. Unfortunately, most of the causes tied to the fall of the nation’s economy has been centered around president Jacob Zuma. But an economist, Montalto, recently said that such public notion is wrong and not helpful to the nation’s economic growth.
Peter Attard Montalto opined that Zuma ought to be seen as just one out of several other over factors leading to the nation’s economic collapse. He said Zuma needs to be seen as just one component of the so-called “tenderpreneur faction,” whose ultimate success at the elective conference at the end of next year “is the embodiment of the status quo continuing beyond Zuma.”
Referring to the Nkandla ruling by the Constitutional Court against Zuma, Economist Montalto said the ruling had little or no influence on the ruling ANC’s National Executive Committee (NEC) let alone the nation’s economy.
In the economist’s view, the market will continue to view “the triumph” of the Constitutional Court in the Nkandla saga as positive for the rand and SA assets, but this view confuses a number of matters.
“The rand and SA assets will likely remain on the front-foot until the market realizes that the Constitutional Court order that President Jacob Zuma and parliament violated the Constitution and their duties does not shift the needle decisively within the ANC NEC.”
The Constitutional Court ruled that Zuma and the parliament violated the Constitution, hence Zuma had to personally pay back the amount the nation’s treasury, ordering him to pay within 45 days.
Economist Montalto, who is of the view that the court had no choice but to get involved in a very political area and in specifics, said Zuma’s control is political and patronage-based and is independent and immune – to a large degree – to legal issues like this.
According to him the future is still bleak as there is yet no precedent on dealing with a declaratory order like this.
“Parliament’s rule book also says nothing on the specifics at present.”
“The realms of legal and constitutional issues are very different from politics. The latter is the worry, not the former.”
However, Montalto urged the market to realize that some of the ANC’s views on the Constitution which includes statements by Zuma and the speaker of parliament Baleka Mbete that the ANC is “above” the Constitution,”have long been deeply disturbing. Hence the Concourt’s decision is not yet the end of the issue for the country.”
“As such the issue goes much deeper: The Constitutional Court may triumph today, but what is the point if those from the ‘ruling’ party only pay lip service to the Constitutional Order?”
“This is a much more market-negative underlying current and we have continually highlighted that ‘Zumxit’ or not, the status quo continuing here is equally worrying.”