SA Property Owners outraged over Finance Minister's sacking

Neil Gopal CEO of South African Property Owners Association (Sapoa) said we are deeply concerned about this latest move

Last night's announcement by President Zuma to remove Nhlanhla Nene as Finance Minister, has sparked outrage from the South African Property Owners Association (Sapoa).

Zuma took an unprecedented step on to axe Nene from the Finance portfolio in Cabinet – barely two years after he took office and replaced him with unknown African National Congress (ANC) member of parliament David Van Rooyen.

Speaking to Africa Property News.com on the outcome, Neil Gopal CEO of Sapoa said we are deeply concerned about this latest move.

"Mr Nene is a highly competent individual who is well respected both locally and globally. His positive suggestions around the nuclear deal and treatment of certain Parastatals is the likely reason behind this questionable move," Gopal said.

ANC insiders said Mr van Rooyen was not well known even to them.

Nene has been at loggerheads with SAA chair Dudu Myeni – who serves as the chairperson of the president Jacob Zuma’s education trust.

Tensions between Nene and Myeni worsened last week after Nene turned down a proposal from the South African Airways (SAA) board to restructure a re-fleeting transaction with Airbus.

Nene reportedly gave a stern warning that should the board proceed without his permission, it would constitute financial misconduct with consequences for the directors. The treasury said in a statement last week that the board’s proposal to restructure the deal would leave the SAA in a materially “worse off financial position where it is unable to meet commitments as they become due”.

Meanwhile the Rand crashed through the R15/$ level on Wednesday night after the news announcement.

Gopal adds: “On the back of a SA's downgrading, lack of economic growth, lack of clear policy decisions, high unemployment, uncertainty, rampant corruption and he appalling state of some State run entities, the timing of this latest move is rather peculiar."

"I'm certain more changes are on the cards," says Gopal.

Sapoa was established in 1966 by the leading and large property investment companies to bring together all role players in the commercial property field aiming to create a powerful platform for property investors.

Its members control about 90% of all commercial and combined portfolios in excess of R500-billion.