South African judge throws out Zuma corruption case - clearing the way for him to become president

A South African judge threw out corruption charges against ruling party leader Jacob Zuma  today, clearing the way for him to become the country's next president.

Judge Chris Nicholson granted Zuma's application to have corruption charges dismissed, saying it was clear there had been political interference in the case.

He ordered the state to pay the African National Congress (ANC) leader's legal costs.

The ruling led to South Africa's rand currency weakening slightly against the dollar as investors fretted that Zuma's union and communist allies may push him away from pro-business policies if he becomes president.

Zuma's supporters say he was the victim of a political witch-hunt by his rival, South African President Thabo Mbeki.

Nicholson said he was "not convinced that the applicant (Zuma) was incorrect when he averred political meddling in his prosecution."

The judge, a former human rights lawyer, referred to a "titanic political struggle" between Zuma and Mbeki and said two successive justice ministers had meddled in the prosecution.

Zuma told thousands of supporters outside the court that the judge had said the prosecution was "a political wrangle", against the constitution and unfair.

"This is a lesson that we should never keep quiet when those in power break the law. I think the judgment is a serious reflection to those who are given authority and do not use it appropriately," Zuma said.

Analysts said the ruling was a blow to Mbeki, who was ousted as ANC leader by Zuma last December.

"Mbeki's government will have suffered another blow from today's ruling. Nicholson was scathing of the apparent political interference. Although there will be calls for Mbeki to resign, these will be ignored," said Mike Davies, Middle East and Africa analyst at Eurasia Group.

The National Prosecuting Authority (NPA) first informed Zuma he was being investigated in early 2003.

Zuma and his supporters sing and dance outside the Pietermaritzburg High Court. The ruling has cleared the way for him to become president

"I should imagine that people will be quite relieved that the storm is over ... the courts are quite respected. I presume this clears the way for a Zuma presidency," said Brian Kantor, political analyst at Investec Securities.

Free of the legal case, Zuma is virtually guaranteed the presidency in 2009 elections because of the ANC's dominance.

But the NPA can ask the judge for leave to appeal against the decision. NPA spokesman Tladi Tladi said the judgment would be studied to see if there were other legal avenues to explore.

South African government bonds firmed slightly after the verdict. The rand was slightly weaker at 8.1720 to the dollar, compared to 8.1250 just before the ruling.

"In theory, today's news should be a positive for the (rand). However, markets remain nervous as it leaves Zuma clear to become South African president next year, with all the potential negative implications for economic policy," RBC Dominion Securities Inc. said in a research note.

Foreign investors worry Zuma's left-leaning union allies will pressure him to stray from pro-business policies if he becomes leader of Africa's biggest economy. He has tried to reassure them that he is committed to economic growth.

Zuma's supporters were elated.

"I think it was fair for Zuma because it (the proceedings) took a long time. It's clear there is no case against Zuma. We are happy that he will be president now," said Bernard Skhosana, a security guard in Johannesburg.