Fears new Gigaba aide will shift heat

Some in the alliance say the minister’s adviser may deflect the debate away from state capture

ANC economic transformation head Enoch Godongwana has questioned the rationale behind the appointment of Chris Malikane as Finance Minister Malusi Gigaba’s economic adviser, saying his views were in conflict with those of government policy.

Some in the ruling alliance believe Malikane was imposed on Gigaba by the controversial Gupta family and supporters of President Jacob Zuma to divert attention from state capture and towards the “radical economic transformation” debate. The latter debate has become a proxy policy battleground among factions in the ANC ahead of the party’s elective conference in December.

Said a senior alliance leader: “There is a convergence in the emergence of this rhetoric together with the employment of [public relations firm] Bell Pottinger by the Guptas. People see [this] as a deflection of the state capture debate to this rhetoric about radical economic transformation, white monopoly capital and the Ruperts [family, headed by billionaire Johann Rupert].

“That’s one aspect to it. Another aspect is being utilised as a platform for mobilisation for [the ANC] conference,” said the leader.

Godongwana said Malikane’s appointment came as a surprise to him because Malikane had been the only person in the National Planning Commission who had objected to the National Development Plan (NDP). Other members of the commission included Deputy President Cyril Ramaphosa and former finance minister Trevor Manuel, as well as Planning, Monitoring and Evaluation Minister Jeff Radebe and businessperson Bobby Godsell.

“Professor Malikane will be conflicted in the sense that he did not support the NDP, which is current government policy, and he is supposed to be advising the minister how to implement government policy, which among other things is the NDP,” said Godongwana.

In an abridged version of a paper by Malikane, published by the Sunday Times, he advocated for isolating the “enemies of the people, the white monopoly capitalists who own mining, banking, other industries and a disproportionate share of the land and credit based black capitalists”. He called for the expropriation of banks, mines and insurance firms and the nationalisation of land without compensation.

Godongwana had expressed his unhappiness with the axing of Pravin Gordhan as finance minister, but this week said he was so far comfortable with the direction Gigaba was taking. “I’m happy with the posture he is taking, which is consistent with what a minister of finance should represent,” said Godongwana.

Malikane’s appointment as Gigaba’s adviser may have reinforced fears that government policy would change, but Godongwana said he was confident this would not be the case.

“There is nothing that will impact on ANC policy. ANC policy is formulated by members of the ANC in properly constituted structures. For us, the deployee is the minister of finance [Gigaba], who has to implement ANC policy which is developed from time to time,” said Godongwana.

Earlier this week, Gigaba issued a statement distancing himself and the treasury from Malikane’s utterances, saying they were “not necessarily government policy” and that the minister would continue to be guided by the policies of the ANC.

In a press briefing ahead of his trip to attend the 2017 Spring meetings of the World Bank Group and the International Monetary Fund in Washington, DC, Gigaba said he had told Malikane to “keep quiet and allow me to do my work”.

The advice that Malikane supplied would “never detract” from the policies of the ANC and the Cabinet, said Gigaba. Nevertheless, the country should not be agitated by people who hold different views, especially if they stem from “an abhorrence” for poverty and inequality, he added.

Malikane could not be reached for comment on Thursday.

Despite Gigaba’s reassurances that there will be no sharp departure from established fiscal policy, investors appear to be taking a wait-andsee approach.

Gigaba briefed asset managers in Cape Town last week. Aeon Investment Management chief investment officer Asief Mohamed who attended the meeting said: “[Gigaba] says what investors want to hear; the question is whether he is going to walk the talk.”