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Rivals Disrupt Jacob Zuma’s Speech on South African Economy

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South AFrica

JOHANNESBURG — Weakened by scandal and policy missteps, South Africa’s president, Jacob G. Zuma, pledged in a state of the nation address on Thursday to revive the country’s economy and cut excessive spending. But the speech was delayed and repeatedly interrupted by rivals who angrily demanded his resignation.

In a sober address that experts had considered critical to shoring up his presidency, Mr. Zuma focused largely on the stagnant economy, and on repairing some of the recent damage caused by what some see as his mishandling of the finance ministry.

Analysts say that South Africa’s economy, Africa’s second largest and its most sophisticated, could slip into a recession because of government mismanagement, severe drought and the economic slowdown in China.

Jacob Zuma, South African Leader, to Repay Part of Money Spent on His HomeFEB. 3, 2016
Acknowledging that the country’s government debt was at risk of being downgraded to junk status, Mr. Zuma highlighted measures — including policies to facilitate investment, streamline state enterprises and pursue nuclear energy — that were clearly designed to fend off such a move by credit agencies.

Mr. Zuma did not directly address a longstanding spending scandal involving his private residence that has now reached the nation’s highest court. Yet Mr. Zuma seemed to be trying to assuage public anger over the issue by announcing steps to cut unnecessary government spending.

Mr. Zuma, in his ninth state of the nation address since taking power in 2009, faced the country and Parliament more humbled that he has ever been. In the days leading up to the address, Mr. Zuma, who has typically handled his critics by mocking them, made a point of listening to South Africans: meeting with business leaders in Cape Town and talking to drivers and customers at a taxi stand in Pretoria.

During Mr. Zuma’s address on Thursday, opposition lawmakers demanded that he explain his firing in December of a well-respected finance minister who had clashed with one of Mr. Zuma’s closest allies, and replacing him with a little-known lawmaker. It was a decision that further eroded investors’ confidence in the country’s economy and the health of its institutions.

Mr. Zuma reversed himself a few days after the initial firing by firing the new minister and reappointing a former finance minister.

The reversal, which further weakened the South African currency, the rand, and placed the nation at greater risk of a credit downgrade, is believed to have eroded Mr. Zuma’s standing within his own party, the African National Congress, and in business circles close to it.

On Tuesday, the Constitutional Court, the nation’s highest, heard arguments from two opposition party lawyers that Mr. Zuma had acted illegally by defying an order to pay back part of expensive upgrades to his private home in Nkandla in KwaZulu-Natal Province. The court has yet to rule on the case, which for many has come to symbolize widespread corruption inside the A.N.C., the party that has held power since the end of apartheid in 1994.

Mr. Zuma’s lawyers said in court that he was prepared to repay part of the money, reversing years of refusals to do so. During last year’s address, a fight broke out between security guards and rivals who demanded that Mr. Zuma “pay back the money.”

But opposition parties are now seeking a court ruling that the president violated the Constitution, in a bid to start impeachment proceedings against him. Any impeachment attempt would likely fail, given Mr. Zuma’s control of Parliament, but it could hurt his party in important municipal elections later this year.

Before Mr. Zuma’s speech on Thursday, Mmusi Maimane, the leader of the main opposition party, the Democratic Alliance, said in a statement that “South Africa continues to suffer from a leadership crisis, as the president hops from one scandal to the next, all to protect himself and his cronies.”

“The president should himself expedite the process of his removal from office by doing the honorable thing and resigning,” Mr. Maimane said.

Members of the second-largest opposition party, the Economic Freedom Fighters, repeatedly interrupted Mr. Zuma’s speech, delaying its start by nearly an hour.

“Zuma is no longer a president that deserves the respect from anyone,” the party’s leader, Julius Malema, yelled as he and his members were eventually expelled from the parliamentary chamber.

“He has stolen from us, he has corrupted the economy of South Africa, he has made this country a joke and after that, he has laughed at us.”

The New York Times

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Netanyahu Stands Firm as US Halts Bomb Shipment Over Rafah Invasion Warning

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Netanyahu

Amidst escalating tensions between Israel and the United States, Israeli Prime Minister Benjamin Netanyahu has adopted a defiant stance following the US decision to halt a shipment of bombs and warned against Israel’s potential invasion of the southern Gaza city of Rafah.

In a bold statement, Netanyahu declared, “If we have to stand alone, we will stand alone,” emphasizing Israel’s resolve to pursue its objectives despite opposition.

The Prime Minister’s comments, delivered via social media and a subsequent interview with American talk show host Dr. Phil, underscore Israel’s determination to address security threats posed by the Gaza Strip, particularly by Hamas militants operating in Rafah.

Netanyahu reiterated the necessity of military action in Rafah to eliminate the remaining Hamas battalions, condemned Hamas’s history of violence and reiterated Israel’s commitment to achieving victory and ensuring the safety of its citizens.

The US administration, led by President Joe Biden, expressed concerns over the potential humanitarian impact of an Israeli invasion of Rafah, prompting the decision to withhold additional offensive weapons shipments to Israel.

Biden’s statement echoed broader international apprehensions about the escalation of violence and civilian casualties in the conflict-stricken region.

However, Netanyahu remained resolute in Israel’s approach, asserting the country’s right to defend itself against security threats. He emphasized Israel’s efforts to minimize civilian casualties and facilitate the evacuation of civilians from Rafah before any military action.

Despite the US’s decision to pause the bomb shipment, Netanyahu affirmed Israel’s commitment to its longstanding alliance with the US. He acknowledged past disagreements between the two nations but expressed optimism about resolving current tensions through dialogue and cooperation.

In response, White House officials reiterated the US’s support for Israel’s security while urging restraint and emphasizing the need to avoid actions that could exacerbate the humanitarian crisis in Gaza.

The administration clarified that the decision to halt the bomb shipment was aimed at preventing potential civilian casualties in Rafah.

The confrontation between Israel and the US underscores the complexity of navigating regional conflicts and balancing strategic interests. As tensions persist, both nations face the challenge of reconciling their respective security imperatives with broader humanitarian concerns, seeking to avert further escalation while addressing the root causes of the conflict in the Middle East.

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EFCC Declares Former Kogi Governor, Yahaya Bello, Wanted Over N80.2 Billion Money Laundering Allegations

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Yahaya Bello

The Economic and Financial Crimes Commission (EFCC) has escalated its pursuit of justice by declaring former Kogi State Governor, Yahaya Bello, wanted over alleged money laundering amounting to N80.2 billion.

In a first-of-its-kind action, the EFCC announced Bello’s wanted status in connection with the alleged embezzlement of funds during his tenure as governor.

The commission, armed with a 19-count criminal charge, accused Bello and his cohorts of conspiring to launder the hefty sum, which was purportedly diverted from state coffers for personal gain.

The declaration of Bello as a wanted fugitive came after a series of failed attempts by the EFCC to effect his arrest.

Despite an ex-parte order from Justice Emeka Nwite of the Federal High Court, Abuja, mandating the EFCC to apprehend and produce Bello in court for arraignment, the former governor managed to evade capture with the reported assistance of his successor, Governor Usman Ododo.

This latest development shows the challenges faced by law enforcement agencies in holding powerful individuals accountable for their actions.

However, it also demonstrates the unwavering commitment of the EFCC to uphold the rule of law and ensure that justice is served, irrespective of the status or influence of the accused.

In response to the EFCC’s declaration, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, issued a stern warning to Bello, stating that fleeing from the law would not resolve the allegations against him.

Fagbemi urged Bello to honor the EFCC’s invitation and cooperate with the investigation process, saying it is important to uphold the rule of law and respect the authority of law enforcement agencies.

The EFCC’s pursuit of Bello underscores the agency’s mandate to combat corruption and financial crimes, sending a strong message that individuals implicated in corrupt practices will be held accountable for their actions.

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Concerns Mount Over Security as National Identity Card Issuance Shifts to Banks

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NIMC enrolment

Amidst the National Identity Management Commission’s (NIMC) recent announcement that the issuance of the proposed new national identity card will be facilitated through applicants’ respective banks, concerns are escalating regarding the security implications of involving financial institutions in the distribution process.

The federal government, in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS), introduced a new identity card with payment functionality, aimed at streamlining access to social and financial services.

However, the decision to utilize banks as distribution channels has sparked apprehension among industry stakeholders.

Mr. Kayode Adegoke, Head of Corporate Communications at NIMC, clarified that applicants would request the card by providing their National Identification Number (NIN) through various channels, including online portals, NIMC offices, or their respective banks.

Adegoke emphasized that the new National ID Card would serve as a single, multipurpose card, encompassing payment functionality, government services, and travel documentation.

Despite NIMC’s assurances, concerns have been raised regarding the necessity and security implications of introducing a new identity card system when an operational one already exists.

Chief Deolu Ogunbanjo, President of the National Association of Telecoms Subscribers, questioned the rationale behind the new General Multipurpose Card (GMPC), citing NIMC’s existing mandate to issue such cards under Act No. 23 of 2007.

Ogunbanjo highlighted the successful implementation of MobileID by NIMC, which has provided identity verification for over 15 million individuals.

He expressed apprehension about integrating the new ID card with existing MobileID systems and raised concerns about data privacy and unauthorized duplication of ID cards.

Moreover, stakeholders are seeking clarification on the responsibilities for card blocking, replacement, and delivery in case of loss or theft, given the involvement of multiple parties, including banks, in the issuance process.

The shift towards utilizing banks for identity card issuance raises fundamental questions about data security, privacy, and the integrity of the identification process.

With financial institutions playing a pivotal role in distributing sensitive government documents, there are valid concerns about potential vulnerabilities and risks associated with this approach.

As the debate surrounding the security implications of the new national identity card continues to intensify, stakeholders are calling for greater transparency, accountability, and collaboration between government agencies and financial institutions to address these concerns effectively.

The paramount importance of safeguarding citizens’ personal information and ensuring the integrity of the identity verification process cannot be overstated, especially in an era of increasing digital interconnectedness and heightened cybersecurity threats.

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