Budget crisis threatens GNU: DA weighs exit while ActionSA stands ready

While the ANC is still to consult on the Budget following the passing of the Fiscal Framework and Revenue Proposals, the DA has yet to decide on whether it will stay in the Government of National Unity (GNU).

This takes place as ActionSA is sitting on the wings, ready to step in as the executive.

DA national spokesperson Willie Aucamp said on Saturday the federal executive met two days ago to discuss the court case instituted in the Western Cape High Court and their continuous presence within the GNU or not.

“No decision has been taken in that regard. That meeting will reconvene and we will continue the discussions on it,” Aucamp said.

The DA voted against the fiscal framework on Wednesday and then filed papers in court on Thursday, a few hours after holding their federal executive meeting to reflect and decide on their future in the GNU.

Aucamp said the meeting, held from 12.30pm until 2pm, could not finish its business because DA leader John Steenhuisen and several other ministers had to participate in a question and answer session in Parliament.

He also said the decision to stay or leave the GNU will be discussed at a meeting to be convened on a yet-to-be-announced date by federal chairperson Helen Zille.

“The Democratic Alliance will not make a very important decision like this in haste and we will always act in the best interest of every South African when we make a decision,” Aucamp said.

Speaking in Durban on Saturday, DA leader John Steenhuisen said they were seeking ways of ensuring that there is a balance within the GNU.

Steenhuisen said five weeks ago, his party tabled in Parliament and in the sub-committee of Cabinet a proposal that would see a fiscal framework passed without a VAT increase.

“That was rejected at the time and we were told unequivocally that there was no way this Budget could be passed without a VAT increase.

“We disagreed, we showed the numbers, we showed how it could be done and it's ironic that we find ourselves now in the same position that we were five weeks ago with a solution now that wants to exclude VAT.”

He maintained that the fiscal framework that was passed by Parliament still included a VAT increase.

“We have gone to court to interdict the VAT increase from taking place on 1 May. As you know many retailers and many companies have already sent notices to their clients about that, but we will also try and find a way forward through this impasse because we believe that it is in South Africa's interest to have a stable and accountable government in the country, and so we are willing to talk to any party who wants to grow the economy and create jobs within the GNU to find a way forward on that and there is still a long way to go in this process,” Steenhuisen added.

“There is still time if there is a commitment from all parties to genuinely focus on power sharing and inclusive government,” he said in reference to the Division of Revenue Act, taxation laws, and other instruments of the Budget that are still coming to Parliament in two months.

“If there is a commitment from all parties to genuinely focus on power sharing and inclusive government to find each other, certainly our door is open. We remain available to talk, but it has to be on the basis that we move to a system of genuine power sharing and not just a situation where we are reduced to by-standers for a government we bring in 22% of the vote in Parliament,” he said.

ANC secretary-general Fikile Mbalula said the party’s top officials will have a discussion on Monday in their regular meeting.

“We will reflect on developments of the past week and will continue to engage with political parties,” Mbalula said.

He also said the national working committee will then report to the national executive committee (NEC) and engage with its allies, Cosatu, SACP, and others.

Consultation is scheduled with religious bodies and the business sector.

“We look forward to the next five to 10 days with eagerness, working with everybody as we move towards addressing the matter with regard to the Budget,” he said.

The ANC managed to secure the vote to pass the fiscal framework with votes from GNU partners with the exception of the DA. There were other parties that are not in the Cabinet such as Build One South Africa, Rise Mzansi and ActionSA.

Commenting on the DA voting against the Budget and its future in the GNU, Mbalula said the ball was in its court.

“If you say you don’t want the Budget at all costs, you walk and nobody said you must walk. Now we are given a burden to decide the DA’s fate in GNU.  It can’t be our problem. They have decided,” he said.

“It is their burden, they must answer it,” Mbalula added.

He stated that the ANC was open to talks.

“We have committed with political parties about how we must go forward and we need to engage government collectively on what needs to be done going forward,” Mbalula said.

Yesterday, ActionSA leader Herman Mashaba indicated interest in joining the GNU but was quick to point out it was up to President Cyril Ramaphosa.

“We are waiting as ActionSA to see what the DA is going to do, whether they will walk on their own and be honourable or the president announcing the new Cabinet,” he told Newzroom Afrika.

Mashaba stated that they have got their thought on coalition and would want to “sit down” with the ANC.

“If they really want us to participate in the government, they have got to sit down with us as grown-up men and women, respect coalition arrangement like anywhere in the world, and then we can decide on the type of government.

“It is no longer business as usual where anyone can tell us it is the prerogative of the president to decide on the Cabinet. It does not work like that in a coalition arrangement,” he said

On the DA’s stay in GNU after voting against the Budget, Mashaba said it has never happened anywhere in the world where ministers implemented a Budget they voted against.

“It’s unheard of, it’s unacceptable. If honourable, they should have walked away. I don’t know what they are waiting for… It is up to the president to show this country, to show ANC people, the leadership this country requires,” he said, adding that his party had indicated to the ANC that any party that voted against the fiscal framework should be kicked out of the Cabinet.

mayibongwe.maqhina@inl.co.za