South Africa's ruling African National Congress kicked its Youth League leader, Julius Malema, out of the party for five years today after finding him guilty of sowing division.
The decision by the ANC dealt a major blow to the political career of the outspoken youth leader and his push to nationalise mines in the world's biggest platinum producer.
South African stocks extended gains after news of the suspension of Mr Malema (30) who has unnerved investors with his drive to nationalise mines. The rand also firmed slightly after the announcement.
Derek Hanekom, head of the ANC disciplinary panel, said Mr Malema had been found guilty of sowing serious divisions in the party and of bringing the 99-year-old liberation movement into disrepute.
Suspension of Mr Malema should also help pave the way for President Jacob Zuma to secure a second term as ANC leader - and hence the country's president - at a party conference in a year.
But the unexpectedly harsh sentence imposed on Mr Malema, a significant power broker in the ANC, could provoke an anti-Zuma backlash.
ANC insiders say Mr Malema is part of a plot to replace Mr Zuma with a leader more sympathetic to the Youth League's desire to nationalise the mines and seize white-owned farms for redistribution to landless blacks.
The party said Mr Malema had the right to appeal to the ANC disciplinary body and any appeal had to be lodged within 14 days. He can also appeal the outcome to the ANC's National Executive Committee - headed by Mr Zuma.
Mr Malema was writing a university exam today and was not immediately available for comment.
Reuters