Government set to extend Fuzile’s term
THE GOVERNMENT is set to extend National Treasury director-general Lungisa Fuzile’s term when it expires in the middle of next month, according to two people with knowledge of the matter.
Bloomberg yesterday reported that Finance Minister Pravin Gordhan had reportedly recommended the extension of Fuzile’s contract. The Treasury said yesterday that it would make an announcement “as soon as we are finished on government processes”.
Fuzile, a former school teacher and university lecturer, joined the Treasury in 1998 and rose through the ranks.
Prior to his appointment as director-general in May 2011, Fuzile headed the National Treasury’s asset and liability management division. He replaced Lesetja Kganyago, the current governor of the SA Reserve Bank.
Pan-African Capital Holdings chief executive Iraj Abedian said yesterday that Fuzile had headed the Treasury during the most challenging period since 1994.
He said Fuzile had faced both political, as well as economic challenges, compounded by a very unfavourable global economic milieu.
“He has had changing political leadership to work with in the Finance Ministry, and he has been the only (directorgeneral) who had a minister for less than three days,” Abedian said. “In this context, he has proven capable, not only technically, but also shown resilience and principled in the face of political headwinds.”
Abedian said there were compelling reasons to renew his contract as the government could not afford another source of uncertainty in dealing with local and global capital markets at a time when its borrowing requirements were rising.
The country’s credit-worthiness was declining, “and there are clouds hanging over the stability of the political economy framework in the country”, he said.
As the country faces a possible downgrade by rating agencies Standard & Poor’s and Fitch Ratings in a few weeks, many look to the Treasury to assure investors the government can deliver on its promise to affect fiscal policy adjustments including the commitment to narrow the budget deficit to 2.4 percent of gross domestic product by the 2018/19 fiscal year.
This is against the backdrop of high inflation, weak commodity prices, a devastating drought, weak business confidence, interest rate hikes and high inflation.
Statistics SA said yesterday that the annual headline producer price index inflation for final manufactured goods had dipped to 7.1 percent from 8.1 percent in February.
Food product prices rose to 10.5 percent year on year.