Business Leadership South Africa (BLSA) has lamented the resignation of the head of National Treasury’s budget office, deputy director-general, saying that it was of “enormous concern”.
BLSA joins a long list of opposition parties, trade unions and civil rights organisations who have also raised concerns about power struggles at National Treasury following Sachs’ resignation.
According to National Treasury, Sachs was leaving to serve the government in another capacity. But media reports on Monday said he was leaving in protest of interference by the presidency in the budget process, notably around the issue of funding free tertiary education.
BLSA chief executive, Bonang Mohale, said Sachs was another in a line of admirable and competent professionals leaving what is arguably the government’s most important ministry tasked with the economic well-being of the country.
Mohale said Sachs’ departure would further undermine the credibility of the country’s institutions and comes right before credit rating agencies publish their review of South Africa’s economy on 24 November.
“In his medium-term budget policy statement, [Finance] Minister [Malusi] Gigaba told us about a new structure in the Presidency to oversee expenditure in the Treasury. We at BLSA are of the view that this could well violate the constitution,” Mohale said.
“Sections 215 and 216 of the constitution ensure transparency and expenditure control, including the right of the Treasury to stop the transfer of funds to organs of state in the face of any serious or material breach of proper financial management. Parliament carries the ultimate responsibility for approving the budget, not the Presidency.”
Mohale said this latest development raised further concerns over the politicization of the Treasury and budget process and sends the wrong signal to the people of South Africa.
Click here to watch more:
