Mogajane outlines the impact of Nene’s axing at State Capture

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National Treasury Director-General Dondo Mogajane has echoed the words of his predecessor Lungisa Fuzile on the impact felt by the markets following the firing of former Finance Minister Nhlanhla Nene in December 2015.

He says 148 000 jobs were lost in that year as the Rand suffered knock-on effects as a result of the changes in the department. Mogajane says the recovery of the damage might take longer than anticipated due to the continued slow economic growth across the world.

He is currently giving evidence at the Commission of Inquiry into State Capture underway in Johannesburg.

“A reduction of about R378 billion in the JSE market capitalization… and we also costed the impact to at least 1.1% of that GDP by the end of that year 2017. That for me are the three variables that we looked at in the model that I requested from my teams in the economy sector at Treasury.”

Mogajane says due to the dire situation at the time, they felt it necessary to write a media statement in order to calm the markets, but ironically the office of the president was quiet on the matter.

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