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The budget deadlock could have been resolved much earlier if Godongwana had taken the objections seriously, EFF leader Julius Malema says.
Finance Minister Enoch Godongwana. Picture: X/GovernmentZA
Finance Minister Enoch Godongwna is unlikely to lose his job over his push to raise value-added tax (VAT), which the EFF described as “both incompetent and arrogant”.
This is according to North-West University professor and political analyst Andre Duvenhage.
EFF leader Julius Malema said on Monday the budget deadlock in parliament could have been resolved much earlier if Godongwana had taken the objections seriously.
“While the VAT increase was a particular trigger, the entire 2025 budget as formulated by the minister of finance is fundamentally flawed. The National Treasury’s neoliberal dogma, obsession with austerity and blind loyalty to the white capitalist establishment have no place in South Africa’s current economic realities,” Malema said.
ALSO READ: WATCH: Suspension of VAT increase ‘necessary intervention,’ Malema says
Duvenhage said many parties had capitalised on the Western Cape High Court’s order to suspend VAT.
“It is quite interesting to see how many parties, even the ANC, tried to capitalise on a decision going primarily against them. Ironically this time the EFF is on the right side, but I honestly know and argue also that it was a decision from the court that stopped the whole VAT issue and the fiscal framework.”
National Treasury was dealt another blow on Sunday when the Western Cape High Court ordered the scrapping of the 0.5% VAT increase until parliament passes legislation making Godongwana’s decision to reverse the VAT hike an act of parliament.
Duvenhage said Godongwana had not managed the VAT hike process.
“If you assess the role that Godongwana played in that process, unfortunately, it’s not a management process that goes to his credit.
“If we were in an established democracy where there’s sound procedures, sound processes and so on, I have no doubt that Gondongwana would not have survived that ordeal.
“He failed because he did not manage the process. It is correct of the EFF to argue that the minister of finance should be removed from his position,” Duvenhage said.
ALSO READ: EFF calls for resignation of Godongwana amid VAT fiasco
Duvenhage said there are so many “dynamics” to consider if Gondongwana were to be removed from his position.
“One of the dynamics is the Paul Mashatile faction using the VAT impasse to undermine the government of national unity.
“I am not sure where Godonwgwana stands in this process, so maybe he is part of factional politics,” Duvenhage said.
“Although I read him more within the context of Cyril Ramaphosa. But the fact of the matter is that, by continuing with the decision against all odds, as I remember Helen Zille saying when they put the court case forward, that the minister in his capacity as one of the executives has no authority to hike the VAT rate. That is only done by a decision from parliament.
“We also know that that process was manipulated through the portfolio committee of parliament. So, taking all of this into consideration, in a democratic dispensation, if there’s a responsible government as your core principal and there is transparency, I have no doubt that he would have ended up in trouble.
“He would most probably have lost his post. But the fact of the matter is that within the ANC it’s not happening that way,” Duvenhage said.
Duvenhage said if Godongwana was fired, there aren’t many people who could take over the finance minister role.
“Within the ANC framework, it’s going to be problematic. I do not see people with very strong talent who can take over, but it’s highly unlikely that he will be removed. We have seen Ramaphosa not easily removing people from Cabinet.
“But I see no immediate likely candidate. The one who could work is at the moment the special envoy to the United States of America (Mcebisi Jonas). He could have done the job, he had a reputation for working with finance,” Duvenhage said.
Godongwana will now have to table the budget instruments from scratch with new revenue proposals after the high court ruling.
Godongwana dropped his opposition to the case, saying in an affidavit filed on Sunday that he had done so after realising that he had no political support for a VAT increase.
This was after he received a letter from National Assembly Speaker Thoko Didiza asking him to table alternative revenue proposals by Friday.
“I want to make clear that the reason for doing so is due to the recent events [opposition against the hike and a letter from the Speaker] and not as a concession of alleged unconstitutionality,” Gondongwana wrote in his affidavit.
Zille said the court’s decision is a victory for South Africans.
The DA federal chair added that the DA will continue with Part B of its application to have the VAT Act declared unconstitutional.
ALSO READ: Western Cape High Court orders scrapping of the 0.5% VAT increase
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