Ramaphosa ‘had better candidates to choose from’, say experts on finance minister

New finance minister Enoch Godongwana, 64, has big boots to fill as he replaces Tito Mboweni, who was well-known in financial circles and steered the department with a firm hand, often refusing to accede to requests for more money for bailouts and public sector wages.

Godongwana was head of economic development for the ANC and chair of the Development Bank of Southern Africa. He is a former deputy minister of public enterprises and later economic development, MEC of economic affairs and later finance in the Eastern Cape.

He comes from a union background, where he was a shop steward for the Metal and Allied Workers Union, general secretary of the National Union of Metalworkers of SA and head of economic policy at the Congress of South African Trade Unions.

He has a master of science degree in financial economics from the University of London.

As with many other ANC members in high office, Godongwana has a shadow of corruption following him.

In August 2012, an inquiry into investment company Canyon Springs Investments, which lost workers’ pension funds, found he and his wife, who owned 50% of the company, were among those who “were party to the carrying on of the business of the company, either fraudulently or at least recklessly”, said Wayne Duvenage, chief executive of the Organisation Undoing Tax Abuse.

“He was linked to the mysterious disappearance of about R120 million in textile workers’ pension funds and now he is given the keys to the National Treasury.”

Godongwana denied knowledge that the pension money had been invested in the company and it is believed that the money was never recovered.

“We are not aware of the Canyon Springs inquiry report being overturned. He was deputy minister of economic development and resigned soon thereafter.”

Economists who spoke to Saturday Citizen said Godongwana was not as well known as Mboweni and the president “had better candidates to choose from”.

While he has spoken out about various issues in the past, the consensus is that SA will have to wait and see how he performs.

Professor Jannie Rossouw from Wits Business School said he was sad to see Mboweni go.

“I would have preferred David Masondo, the deputy minister of finance. I do not think we can afford to have a minister of finance with a cloud of corruption hanging over his head.”

He said South Africans did not get the Cabinet of national healing they needed: “The mountain gave birth to a mouse.”

Rossouw acknowledged Godongwana had standing in the ANC, but that would mean nothing if he did not ensure financial and fiscal stability.

“His big test will be his first budget in February next year,” he said.

– inao@citizen.co.za