ANC NWC: GNU needs a ‘reset’ after budget fiasco [VIDEO]

The ANC’s national working committee (NWC) has decided to press the reset button on the government of national unity (GNU) over the budget impasse.

The DA and FF+ voted against Finance Minister Enoch Godongwana’s 2025 national budget in parliament last week, leading to furious ANC NEC members calling for the party to eject the two from the GNU and accusing them of “betrayal”.

The ANC’s NWC met on Monday to discuss the future of the coalition government. There it resolved to re-engage with all political parties in the GNU.

“What we have agreed to do is reset the button to ensure that the GNU going forward is governed by rules, not just the statement of intent,” ANC secretary-general Fikile Mbalula said.

Will the DA go?

Mbalua said, “a lot of horrible things have happened in the last five days” covering the debate over the budget and Mbalula slammed the DA.

“We are now deeply concerned by the conduct of the Democratic Alliance, whose participation in the GNU has been marred by double-dealing, negotiating and acting in bad faith and open disdain for transformation.

“The DA seeks to divide government, confuse the public and claim credit without assuming responsibility,” Mbalula said.

Still, he said no decision had been made on whether to call for the removal of their largest coalition partner.

“We have not taken a position about any political party. in the GNU, that includes the DA. We’ve included all political parties who have passed the framework. We are going back to understand, maybe the DA doesn’t want to be in GNU anymore.

“If they still want to be part of it, how do they then address the issue of the budget impasse, and how do we then cross? That is the fundamental question. We don’t have to second guess each other, which will be part and parcel of negotiations and engagement,” Mbalula said.

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Opposition force

Mbalula also accused the DA of behaving as an “opposition force”, saying this has undermined the spirit of co-governance.

“We are not shocked and surprised when people claim victories of the 6th administration that is their mission, but at the end of the day, we have another mission to bring stability.”

Mbalula said the NWC acknowledged parties that put aside party interests, and said it would engage with even those outside the GNU during the reset.

“The ANC NWC acknowledges parties such as ActionSA for showing “maturity” and being “non-partisan” by agreeing to support the fiscal framework in Parliament.”

ActionSA leader Herman Mashaba said earlier that his party would not consider joining the GNU until the budget impasse is resolved and the proposed increase of 0.5 percentage points in VAT for two years is removed.

Cabinet reshuffle

Mbalula said a Cabinet reshuffle may, after renegotiations, then be on the cards. However, this is a prerogative of the president.

“He has not raised it in the meeting of the top seven. He said if there are people who resign, he will apply his mind and will inform the ANC.”

[WATCH] ANC secretary general Fikile Mbalula says President Cyril Ramaphosa has not told the party about any plans to reshuffle his cabinet.#Newzroom405 pic.twitter.com/TOLYDblVTM

— Newzroom Afrika (@Newzroom405) April 8, 2025

VAT

Mbalula also denied that the ANC had tricked ActionSA into passing the budget proposal last week, after party leader Herman Mashaba said they had received no communication from the ANC about the VAT increase.

*We are not tricksters, we don’t trick people. We engaged with ActionSA, and they said they don’t want VAT, that’s not tricking anyone. We will engage with ActionSA and all other parties that supported the passing of the fiscal framework.”

Mbalula said the ANC has taken a position but would not disclose details until it has met with all other political parties.

NEC meeting

Mbalula said the NWC has also resolved that the ANC National Executive Committe (NEC) must “urgently convene with the party’s alliance partners before the special NEC”.

“This engagement will be aimed at adopting a unified strategic framework that will guide our negotiation posture within the GNU and beyond. This framework will define clear macroeconomic objectives, including output and inclusive growth targets.”

Mbalula noted the proposed increase in Value Added Tax (VAT) has sparked public concern and opposition within the GNU.

“Nobody enjoys the raising of taxes. But governments, including ours, need to generate resources to serve the people,” he said.

Mbalula said he has written to all political parties and that they will meet to discuss the budget impasse.

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