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Zuma under pressure on economy powers

JOHANNESBURG, SOUTH AFRICA Oct 04 2009 16:44

8 comments | Post your comment

South African President Jacob Zuma is seeking advice on whether giving the economic development ministry more policy-making powers would be illegal, a local newspaper said on Sunday.

Zuma, under pressure from ally Cosatu to shift policy more towards the left, may violate the Constitution if he gives the ministry more responsibility to manage macroeconomic policy, the Sunday Times reported.

Zuma's spokesperson, Vincent Magwenya, would not confirm or deny the report.

"I can't comment on that issue ... But as far as the president is concerned, there is no contradiction on this issue at all," Magwenya told Reuters.

Cosatu wants Economic Development Minister Ebrahim Patel, a former trade unionist, to be responsible for directing macroeconomic policy.

Patel heads up one of the three ministries in the Zuma administration that will steer the economy, led by the Treasury under Finance Minister Pravin Gordhan, and which also includes the National Planning Commission (NPC) under former finance minister Trevor Manuel.

Cosatu, which wants inflation targets scrapped and changes to how the central bank operates, has clashed with government over the powers given to Manuel, who they view as championing business-friendly economic policy.

The Sunday Times said Zuma had met with a Cosatu delegation last month and promised them to address the issue.

Second in charge
Cosatu president Sidumo Dlamini told the Mail & Guardian in September that Manuel was using the NPC to position himself as the country’s “second in charge”.

CONTINUES BELOW

The ANC and its alliance partners had initially understood that the NPC would “coordinate” government work and ensure implementation, said Dlamini. But it now looked as though Manuel wanted to develop plans for departments and give them a blueprint to implement, and “that would be depriving them of any opportunity to plan on their own. That, for us, is a danger,” he said.

Manuel is seeking to restore “what he lost” when he left the treasury: “He wants to be seen again as this super-minister and every minister should go to him, bow his head and say, ‘Please, Mr Manuel, can we have this?’” said Dlamini. - Reuters and Mail & Guardian Online reporter

TOPICS IN THIS ARTICLE

People

Organisations

Congress of South African Trade Unions

Comments

this alliance is a disaster to ANC, they asked for this, when they made promises prior elections.

PHINEAS MALAKA on October 4, 2009, 7:22 pm

The alliance is the only thing keeping the ANC from turning into a dictatorship led by a few bank managers. Finance should not lead the political direction, people should.

white trash on October 4, 2009, 7:58 pm

Divide and rule.

Jon Low on October 4, 2009, 10:10 pm

JZ will find his political debts increasingly hard to pay. The leftists are ever forcfully insisting on their slice.

Nahor Ecnarraf on October 5, 2009, 3:55 am

The President now has the perfect opportunity to embark on an innovative approach which would provide a viable option for dealing with the current economic climate, while putting in place the checks and balances for moving the country forward without too much runaway power located in any one office or person. The combination of Patel, Gordhan and Manuel would bring together balance, experience, and skills which if properly coordinated would inform a more egalitarian approach to policymaking and result in a more sustainable development picture.

This discussion also raises the issue of whether or not the Constitution needs to be reviewed and amended to make it more relevant to South Africa and its people as they stand today. Overall, it is important that this type of discussion is taking place at this time, and it could prove very fruitful if people seek real solutions and recommendations without resorting to name-calling and character assassination.

Percival Greaves on October 5, 2009, 11:03 am

the communists and labour are bitter that their brainchild (npc)was not given to one of their own.as amenable as our president is,he entertains the whims of the ultra-left.the direction that they want our economy to take is productive in the short-term but its long-term repurcussions are evident in former communist failed states around the globe.

zamo gasela on October 5, 2009, 11:25 am

A business friendly economy is in the long run what is best for everyone, why should we want to turn to communism when it has failed in so many other states? This is a tried and tested formula and it has not worked. By business -friendly I do not mean that the working class should be impoverished, but inflation targetting should (which it will) be conducted in such a manner that the greater good emerges. Anyway is it not the same inflation targetting strategy that aided us during the recession?

Thandi Ntobela on October 5, 2009, 2:21 pm

I would like to commend the witt on the two last comments, I wonder how it feels to just log in an leave a very silent comment

Martin Radebe on October 5, 2009, 3:03 pm

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