The Democratic Alliance (DA) started a process to impeach 73-year-old Zuma after the Constitutional Court ruled that he had "failed to uphold, defend and respect the Constitution" as the supreme law of the land by disregarding the Public Protectors' report in irregular spending of millions of rands at his private residence in Nkandla.
The judgement comes as Zuma, African National Congress (ANC) leader is accused of having improper business links with wealthy Indian family of Guptas in South Africa.
Chief Justice Mogoeng Mogoeng said that parliament, which is dominated by the ANC, had failed in its obligations by not holding Zuma to account in the spending scandal.
After an investigation two years ago, the Public Protector had called on Zuma to repay the costs, but he repeatedly refused to do so until just last month when he offered to pay back some of it.
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Section 89(1) of the South African Constitution allows for the removal of the President from office on the grounds of a serious violation of the Constitution or the law if two-thirds of the House supports it.
"Today's ruling is clear in this regard -- President Jacob Zuma's action amounts to a serious violation of the Constitution, and constitutes grounds for impeachment," the DA said.
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"The President appreciates and reaffirms the powers of the Constitutional Court as a final arbiter on matters of the Constitution in the Republic of South Africa," the government said in a statement.
"The President and government remain confident that our constitutional democracy remains strong and intact and affirms the Chapter 9 institutions established to strengthen and support the country's democracy. Government will in due course communicate further on the matter," it said.
The ANC released a similar statement acknowledging that the Constitutional Court is and remains the guardian of the Constitution of the Republic and the final arbiter on matters before it.