Trevor Manuel Breaks Silence, Calls Nene Sacking “Breach of Trust”

Former finance minister Trevor Manuel has finally broken his silence about the sudden sacking by President Jacob Zuma of finance minister Nhlanhla Nene almost two weeks ago and the subsequent chaos in the markets that analysts have said cost South Africa billions.

In an open letter published on Sunday, Manuel spoke about “shock” and “breach of trust”. He said the events have led to a complete breakdown in trust that have affected the Cabinet, the African National Congress and South Africans at large.

Manuel, an ANC member and a highly respected former minister of finance until 2009 who was earlier this month appointed a director of Old Mutual, says even though he was approached for comment about the events numerous times, he held back.

However, he felt he should say something after Lindiwe Zulu, Minister of Small Business Development, made comments in the media last week – then quickly said she was misquoted – about business having not stood behind the appointment of Nene’s replacement, the unknown backbencher, Des Van Rooyen, which would have eased the transition.

Manuel said, in his open letter addressed to Zulu, that the shock and disbelief at the time of the initial events was not over the appointment of Van Rooyen but the sacking of Nene, who had shown his mettle only a week earlier by standing up to SAA chairman Dudu Myeni.

Manuel said the dismissing of a competent minister – which seemed to have been done without informing the Cabinet – and replacing him without warning or explanation led to a complete breakdown in trust.

“If the views expressed by ministers in the post-Cabinet briefing are correct – and I have no reason to doubt this – the events of the previous day shook the trust of the Cabinet collective at its roots.

“If this view holds, the trust is not broken only with Cabinet, of course. It is also broken with the ANC, with the broader South African electorate, with the markets and with that entity you call ‘business’.

“The breach of trust was not the first, but perhaps the last, straw that broke the camel’s back in the careless handling of a pivotal portfolio.

“Trust between the kinds of groupings that you are talking about can never be broken with one event. Trust is built after a very long time and the ANC has been building that trust.”

Zulu was quoted in news reports on Monday as saying that although she respected Manuel’s view, she disagrees with him that Nene’s removal as finance minister has led to a breakdown in trust.