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Gigaba appointed to 'defang' Treasury - opposition

Cape Town – The appointment of Finance Minister Malusi Gigaba had nothing to do with improving efficiency as President Jacob Zuma has claimed, but rather was meant to capture National Treasury on behalf of the Gupta family, according to opposition parties.

Debating Gigaba’s maiden budget speech on Tuesday, Democratic Alliance spokesperson on finance David Maynier said since Gigaba has taken over the finance ministry from Pravin Gordhan he has somersaulted between “radical economic transformation” and “inclusive economic growth”.

READ: No magic bullet to improve junk status - Gigaba

National Treasury’s legislative mandate is directed at ensuring transparency, accountability and sound fiscal controls in the management of our public finances, Maynier said.

“But the question is: how long can this last?”

National Treasury being ‘defanged’

In his speech, Maynier claimed Gigaba had been appointed to “defang” National Treasury by among other things exerting political control and reducing the institutional independence of the department, diluting the legislative mandate to reduce the institutional strength of National Treasury and controlling the procurement process and the Public Investment Corporation.

He pointed out that other ministers - such as Jeff Radebe (Presidency) and Michael Masuta (Justice and Constitutional Development) - have already started with a “power grab” at National Treasury.

Radebe, he claimed, is handling the budget prioritisation process, while Masuta wants to take control of the Financial Intelligence Centre (FIC).

Masuta in his budget speech a week ago called for a reinstitution of the counter-money laundering advisory council, which according to Maynier is a blatant attempt to dilute National Treasury’s control over the FIC.

“The truth is that National Treasury is in danger of being defanged and reduced to bookkeepers under the new minister and his boss, President Jacob Zuma,” Maynier said.

“That is why it is not an exaggeration to say that President Jacob Zuma’s midnight Cabinet reshuffle, and his policy of radical economic transformation, amounts to the premeditated murder of the economy in South Africa,” Maynier said.

Floyd Shivambu from the Economic Freedom Fighters said in his speech National Treasury has not changed its "bourgeois" character under Gigaba. “It is still committed to the neo-liberal National Development Plan.”

Shivambu called for changes in legislation that will give “teeth” to radical economic transformation. “If you’re really committed to radical economic transformation, let’s put your transformative comments into legislation,” he said.

‘Gigaba must rise above the suspicion’

Mkhuleko Hlengwa, the Inkatha Freedom Party’s spokesperson on finance, said it would be pointless to attack Gigaba, as he “didn’t appoint himself”.

“At this point in time the best we can do is to give you the benefit of the doubt. You did not appoint yourself. The man we must deal with is not here. We all know why there was a Cabinet reshuffle and it puts you at the centre of the controversy.”

He appealed to Gigaba to prove his critics wrong. “Rise above the suspicion. The onus is upon you to prove that you are not captured.”

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