New ANC leader denies crisis over election

South Africa: The newly elected president of South Africa's ruling party has moved to reassure foreign investors that he is …

South Africa:The newly elected president of South Africa's ruling party has moved to reassure foreign investors that he is not about to turn the country into a socialist state.

In his first public statement since becoming leader of the African National Congress (ANC), Jacob Zuma said there was "no reason why the domestic or international business community, or any other sector, should be uneasy".

Mr Zuma, who was sacked from government two years ago over corruption allegations that are due to land him in court early next year, also dismissed suggestions that his elevation had created a crisis in government.

"There is no reason for uncertainty, or fear, in any quarter," he proclaimed.

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But, as he spoke - and sang and danced - at the close of his party's five-day leadership selection convention, state prosecutors were stepping up their investigation of his financial affairs.

Just hours before he delivered his maiden address as ANC president, Mokotedi Mpshe - the acting head of National Prosecuting Authority (NPA) - said it had gathered enough evidence to bring criminal charges against him.

Speaking to reporters, Mr Zuma refused to be drawn on either the corruption allegations, or whether the ANC should make contingency plans in the event of his arrest. But he said it was wrong of Mr Mpshe to make public statements about his case without speaking to him first. Mr Zuma's supporters were less restrained in their comments, saying the timing of the NPA's "announcement" proved the investigation was politically-motivated.

As the controversy continues, the new ANC leadership - which is dominated by Zuma acolytes - has approached the government to seek the disbandment of the Scorpions, the FBI-style police unit which has spearheaded the NPA's inquiries.

Mr Zuma is alleged to have received up to 3.5 million rand (€350,000) in illegal payments, much of it purportedly channelled through a business associate currently serving 15 years in jail for fraud.

In his address to delegates, who gathered in Polokwane in the northern province of Limpopo, the newly-elected president said he would not dictate policy to the ANC but would rather be guided by the decisions of the congress.

He did, however, signal a departure from his predecessor Thabo Mbeki by calling for urgent action on HIV/Aids, and a grass-roots fight against organized crime - which he described as "a threat to our domestic order".

Mr Zuma had previously indicated that he would also push for a stronger stance on Zimbabwe. But yesterday he defended Mr Mbeki's much-maligned policy of "quiet diplomacy" with that country's ruler Robert Mugabe.

"It's not going to be useful for us to stand on the rooftops and criticize Zimambwe," Mr Zuma said. "So, our quiet diplomacy, we are confident with it. We are going to continue with it."

On the economy, he said delegates had given the ANC "a clear mandate to build and strengthen" its alliance with the trade union umbrella group Cosatu and the South African Communist Party. But, he said, there would be no fundamental shift in policy.

"Our resolutions on economic matters will bring about closure and certainty on this matter. We have made it clear that we need more foreign and domestic investment." At the same time, he said, there should be state intervention to alleviate poverty, revealing that the ANC had resolved to redistribute 30 per cent of land to poor farmers by 2014. Mr Zuma also moved to heal what he called the "rift" within the ANC, which was exposed earlier this week when his supporters heckled Mr Mbeki and booed cabinet ministers.

The party president described Mr Mbeki as a "comrade, friend and brother", adding "contesting positions among comrades does not make us enemies".

He concluded his speech with cries of "Amanda awethu [power is ours]" before breaking into his controversial trademark song "Awuleth' uMshini Wami (Bring me my machine gun)", stomping his feet and pummelling his fists in the air in time with the music.

Mr Mbeki, who stays on as president of South Africa until 2009 when potentially Mr Zuma would replace him, stood stony-faced throughout the performance.