Lerato Mbhiza
ANC secretary-general Fikile Mbalula dismissed reports that the national government, whose revenue for the year is expected to be lower than projected, is on the verge of bankruptcy.
Addressing the media during the ANC KZN manifesto review rally at Pietermaritzburg’s Harry Gwala Stadium over the weekend, Mbalula said the ruling party wants Finance Minister Enoch Godongwana to address the nation and allay fears that the government will soon run out of money.
“As the ANC, we have made commitments in terms of our manifesto. If there are any financial problems, we expect our government to be proactive, to lead, provide answers and address the nation. If you are told that by next year the government will run out of money, it becomes a field day for propaganda and lies. That’s why we want the minister to address the nation on the matter.”
Speculation that the national government is in financial trouble gained traction last month following a memo sent by the National Treasury calling on departments and other state entities to implement austerity measures.
According to the National Treasury, austerity measures have become necessary after the government recorded a R143 billion deficit in its monthly balance for July amid the country’s energy crisis and a ballooning state wage bill.
While Mbalula conceded that the government is facing financial challenges, he denied that it is on the brink of bankruptcy.
“I saw Godogwana last week and he said it’s not correct to say that we will run out of money. That is encouraging, he has allayed our worst fears,” he added.
Earlier last week Godongwana also confirmed that the government has not run out of money and that it remained committed to prudent fiscal management.
“The government is working to manage public finances in a prudent and sustainable manner. This includes appropriately responding to the materialisation of risks including unforeseen economic and financial conditions,” Godongwana said.
Godongwana was responding to EFF MP Mzwanele Manyi, who asked in parliament whether the government had run out of money.
Manyi’s question came after the National Treasury released guidelines on cost-cutting measures in a letter sent to state institutions on August 31.
Mbalula said the ANC has fulfilled 70 of the 120 commitments which the party made during the 2019 general elections, urging the organisation’s supporters to counter the narrative that the ANC has not delivered.
“The ANC is the only party in this country which built and continues to build houses for the poor. When HIV was wiping out lives, the ANC government made it a point that our people received the life-saving antiretroviral [treatment]. You look at the public infrastructure, the ANC government continues to construct dams, roads and hospitals.”
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