By Lehlohonolo Lehana.
Minister in the Presidency Khumbudzo Ntshavheni says the Democratic Alliance (DA) wants to hold government to ransom by not agreeing to the revised Budget.
Speaking to the media on Thursday about a Cabinet meeting that preceded the Budget address, Ntshavheni rejected the idea that the DA opposed the Budget because of principled opposition to a VAT increase’s effect on the poor.
While most government of national unity (GNU) parties indicated they would support the Budget (with conditions for some), the second-largest party in the GNU said it would not.
Initially, she didn’t want to give a “blow-by-blow” rundown of Cabinet discussions, but after further questions, pointedly about the DA’s demand about the Expropriation Act, she relented.
She noted that the DA was litigating against the Expropriation Act.
“In simple terms, we need to wait for the court. You can’t run two simultaneous processes.”
“The Expropriation Act has nothing to do with the Budget. The Expropriation Act is part of the redress agenda of this country that seeks to make sure that South Africans, the majority in particular, who were denied access to land and property because of the apartheid regime, can then have redress.”
She said the Expropriation Act could be used to unlock development, for instance, such as President Cyril Ramaphosa’s recent announcement that it would be used to reclaim abandoned and hijacked buildings in Johannesburg.
“But the demand by the DA, as articulated by their leader, Mr John Steenhuisen, after the [Budget address] indicated that their issue with VAT – and by the way, there was no dispute on the 3rd of March – the issue with VAT has nothing to do with an interest in protecting the poor.”
Instead, the DA’s interest is to “make sure that we don’t achieve the transformation gains” the country aims to achieve.
“It’s about politics,” she added.
She cited the DA’s opposition to the Basic Education Laws Amendment (BELA) Act and the National Health Insurance (NHI) Act as further examples of negotiations.
Ramaphosa signed the Expropriation Act in January this year. It replaces expropriation legislation that dates back to apartheid, and among other things, sets out the conditions under which expropriation without compensation would be considered on par with the constitutional requirements that compensation for expropriated land must be just and equitable.
The Act has also become fuel for right-wing disinformation, which includes US President Donald Trump’s claim that Afrikaners’ farms are being confiscated in South Africa. The Act does not single out a race.
The DA has always been opposed to such legislation, considering it as an impediment to economic growth because it creates uncertainty about property rights, according to them.
Whatever the reasons for the DA and other parties’ opposition to the Budget, it creates the possibility that for the first time in democratic South Africa, a Budget might not get passed.
Ntshavheni said the Public Finance Management Act provides for such a situation, in which case, the government would be able to continue to function, using the previous year’s Budget. She noted that such situations often arise in other countries.
She said Cabinet welcomed the tabling of the Budget, which “seeks to maintain a balance between South Africa’s fiscal framework, funding the priorities of the 7th administration… while mitigating the funding requirements impact on the poor and the middle-income household”.
Cabinet welcomes GDP growth
Ntshavheni says the 0.6% increase in South Africa’s gross domestic product (GDP) in the fourth quarter of 2024 signals a recovery across the economy
According to Statistics South Africa (Stats SA), South Africa’s GDP increased by 0.6% in the fourth quarter of 2024, following a decrease of 0.1% in the third quarter of 2024.
“The agriculture, forestry and fishing industry increased by 17.2%, contributing 0.4 of a percentage point to the positive GDP growth. This was primarily due to increased economic activities reported for field crops and animal products.
“The finance, real estate and business services industry increased by 1.1%, contributing 0.3 of a percentage point. Increased economic activities were reported for financial intermediation, real estate activities and other business services,” Stats SA said earlier this month.
The trade, catering and accommodation industry increased by 1.4%, contributing 0.2 of a percentage point. Increased economic activities were reported for wholesale trade, retail trade and motor trade.
Cabinet welcomes Bushiri extradition ruling
Cabinet has welcomed the ruling by the Republic of Malawi’s Chief Resident Magistrate Court that Shepherd and Mary Bushiri be extradited to South Africa to stand trial on multiple criminal charges.
Ntshavheni, said this decision underscores the principle that no one is above the law.
“This ruling shows that no one can run away from the rule of law, and also reaffirms the judicial independence, international cooperation, and mutual trust between the South African and Malawian legal institutions.
“We are aware that that the Bushiris have indicated their intention to appeal. However, we are confident that we have a strong case against them,” Ntshavheni said.
The Minister said South Africa stands ready to collaborate with the International Criminal Police Organisation (INTERPOL) to coordinate the transfer arrangements and logistics to ensure that they are brought to South Africa to stand trial.
Shepherd Bushiri, a self-proclaimed prophet, and his wife, Mary, were arrested in South Africa in 2019 on charges of fraud and money laundering. In October 2020, they faced additional charges, including violations of immigration laws.