Treasury chief resigns

National Treasury has expressed sadness at the resignation of its budget chief, Michael Sachs.

Yesterday, the department confirmed Sachs’s decision to leave his post although the actual reasons for his departure were still not clear.

Finance Minister Malusi Gigaba hailed Sachs for his excellent service and commitment to both the national budget, as well as the department over the years.

“Both the director-general and I are aware of protecting the integrity and transparency of the budget system and process, and ensure that all tax and expenditure decision processes continue to be run by the Treasury and Minister of Finance, and continues with the consultative process introduced by the first democratic government,” Gigaba said.

While Sachs will not immediately leave the department as part of ensuring a smooth handover, his decision was viewed as having the potential to further weaken the National Treasury.

In a statement, the department reiterated that there were senior, experienced officials who are capable.

“Mr Sachs works with many knowledgeable technocrats who he has also helped groom over his years at the department,” the statement read.

The DA said Sachs’s resignation during the middle of a fiscal crunch would plunge the budget process into a crisis.

DA spokesperson for finance David Maynier said Sachs’s departure might have been triggered by chaos in decision-making on the budget.

“The shock resignation of veteran budget office head Michael Sachs, which is a huge blow to National Treasury, confirms our fears that decision-making on budget priorities, and the budget itself, have now been centralised under President Jacob Zuma,” Maynier said.

The resignation comes in the wake of reports that Zuma’s son-in-law, Morris Masutha, is among those who are reportedly putting together a R40 billion budget-busting plan for higher education, with Zuma’s blessing.