ANC National Working Committee resolves to ‘reset’ relationship with DA, other partners

A week after smaller political parties came to the rescue of the ANC, helping it to pass the Budget with a proposed VAT hike, ANC secretary-general Fikile Mbalula says it has been very difficult to find another source of revenue to replace the 0.5 percentage point VAT increase, and that is the headache National Treasury is grappling with.  

The fiscal framework, a key part of Finance Minister Enoch Godongwana’s Budget, was passed with the help of political parties outside of the government of national unity (GNU), including ActionSA and Build One South Africa (Bosa), on the condition that there are talks to explore alternatives to the VAT hike.

Mbalula said the ANC National Working Committee (NWC) acknowledged those parties that passed the fiscal framework. 

“The NWC acknowledged those political parties that rose above partisanship and placed national interest and social justice and economic stability and the sector of the liberation of the fiscal framework. Parties such as ActionSA demonstrated majority and patriotism in supporting the framework on the basis that alternative revenue proposals will be sought, including the replacement of the proposed VAT increase within 30 days,” he said. 

“This collaboration repositions Parliament as a site of negotiation, consensus-building and progressive change. They didn’t have to agree for the passing of the framework, but they addressed what I was talking about, the stability of the country and South Africa, first.

“And it doesn’t mean that they agree with the VAT. By the way, all political parties we talk to and engage with disagree with the VAT issues, but it has been very difficult as to where are the sources of replacement of the 0.5 VAT… and that is the headache that the National Treasury and everybody is grappling with.”

Read more: ANC’s fallout with DA escalates as Ramaphosa pushes back on business pressure

Mbalula made the remarks on Tuesday morning to journalists at the party’s headquarters, Luthuli House, in Johannesburg on the outcomes of the party’s NWC meeting that took place at the weekend. 

Among other issues, the meeting dealt with the conduct of the DA, the second-biggest political party in the GNU, which not only voted against the Budget but has taken the issue a step further by challenging it in court. 

Read more: As DA leaders set to meet, Zille says party’s decision on GNU will have ‘profound implications’ for SA

Mbalula said the NWC was now  “deeply concerned” by the conduct of the DA, which he said continues to act as an opposition force. 

He said that when the GNU Cabinet drafted the Medium-Term Development Plan “the DA acted as an opposition force, opposing the Bela Act, the NHI”. 

“It seeks to divide government, confuse the public and claim credit without assuming responsibility. This dishonesty undermines the very essence of collective governance.”  

Mbalula said it was natural for parties in the GNU to have fundamental disagreements but they ought to rise above them in the interest of South Africans, which the DA failed to do. 

“At the end of the day, we’ve got another mission to serve, beyond our own self-interest, and serve South Africa. And what is that interest? It is called stability.

“We’ve got to be a stable-run government in a stable manner. And it doesn’t mean that it is a melting pot that we’ve got to agree with everything, but at the end of the day, that is the battle that you’ve got when you are in government, to serve for stability of the country.” 

Read more: DA says it is ‘willing to speak to ANC to get a workable Budget on the table’

On the future of the GNU, Mbalula said: “The Working Committee has resolved that we will reset the button, to engage with all political parties in the GNU as well as those who are not in the GNU, to address the impasse with regards to the Budget. We intend to do that within a period of five days to conclude the period of negotiations on the Budget.

“We have not taken any decision on any party, we have taken a decision to reset the button of the GNU and there must be rules that govern it apart from the statement of intent.”

He added: “We have got our own position as the ANC which we will not pronounce for now.”

The inability to agree on the Budget is one of many factors that have highlighted significant fractures within the fragile 10-party GNU, which is still divided over several pieces of legislation, including the National Health Insurance Act, Bela Act and Expropriation Act which Mbalula said were “here to stay”.  

“There is nothing unconstitutional about these bills and that’s it” DM

This is a developing story.