Those who want to leave GNU will go: Mbalula as budget draws near

ANC secretary-general Fikile Mbalula has warned political parties against engaging in the contentious budget negotiation process with aims of political point-scoring, warning it may lead to a reconfigured GNU.

“The ANC is committed to the GNU, with all its partners. But the maturity of the parties is very important. The ANC is not wielding an axe, wanting to cut people. They will cut themselves out and we will proceed. 

“If people come with political agendas that they want to be seen to be doing in a different manner, it will affect the GNU in the long term,” said Mbalula in a post-national executive committee (NEC) outcome briefing at Luthuli House.

On the steps of parliament in Cape Town, DA spokesperson Karabo Khakhau dared the ANC to try to pass the budget without them.

“They must try to pass that budget without the DA, we will see. The DA will not sit and work with a budget that we do not believe serves the best interests of South Africans. If push comes to shove and we find ourselves in a position where the GNU is unworkable altogether, where there is no sobriety as far as the direction we are to take, then if we must, we will leave,” she threatened.

The chances of the GNU reaching agreement on the budget are hanging by a thread after the Presidency rejected a ramped-up set of demands from the DA, which includes shared control of the economy and demanding a “coherent and comprehensive review of economic policy”.

Meanwhile at Luthuli House, Mbalula said his party remains committed to the country and is confident that they will overcome the budget hurdle.

“There has been a back and forth between us and parties. We have a draft framework to engage all parties in the GNU. Having spoken to everybody, we think there is a basis for us to have an agreement with everyone. Not only in the DA, or in the GNU, but even beyond those who agree with us.

However, Mbalula conceded that despite the thorny issue being the proposed VAT increase, his party did not agree with the hike and had tasked the National Treasury to rethink its strategy.

He said a VAT increase could be revoked as and when the economy was out of the woods. 

“We have argued from the onset, when The Treasury came up with 2% that we did not agree. We have run out of options in terms of what to do, so to cushion us [we will] have a 0.5% intervention, which is not permanent.

“As our economic situation improves, the 0.5% is not permanent, it will be withdrawn. There are other line items in the basket that are being addressed, even the spending, those issues are put before us. The DA raises that particular issue, we say it has already been addressed.”

Despite the confidence that the ANC will muster the votes needed to pass the budget, Mbalula, said the portfolio committee meeting in parliament on Tuesday would show whether they are “able to move forward together in terms of adopting the framework ahead of parliament tomorrow”.

“We hope we will find a solution with everyone and we will be able to pass the budget, as well as follow up on the concerns that other political parties including those who are not in the GNU, have raised. Some of the issues being addressed do not relate to the budget now, we need to engage on them but people want agreements now. They speak of devolution, which is being discussed in terms of the rail policy. 

“Our late night and early morning engagements indicate that we are moving closer to each other. That closeness will be consolidated into an agreement. This is our first budget of the GNU that we need to pass so it will be important for everyone to have oversight on the terms of that agreement and agree on the way forward.”

Mbalula dismissed “corridor talk” of a clinched agreement, calling the claims “overzealous”.

“We do not have any agreement with them. We have been engaging on their issues that they have put across and to suggest that there is an agreement between us and them, is not correct. We have been engaging everybody in the GNU, including the DA. They have had a catalogue of issues and they shift from time to time, from one position to the other. It is difficult when you are in negotiations and people leak to the media.

“It now polarises the negotiations. We need to pass the budget for the sake of South Africa, but at the same time we need to be alive and talk to others. It's not really concessions, it's about what the minister has raised and what we think does not address most of the concerns that have been raised by people in their political parties,” he said.

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