Latest news with #Godongwana
Eyewitness News
11 hours ago
- Business
- Eyewitness News
Godongwana thinks political parties should be wholly funded from national fiscus
CAPE TOWN - Finance Minister Enoch Godongwana is of the view that political parties should be wholly funded from the national fiscus and not have to accept private donations. Speaking to the Independent Electoral Commission (IEC)'s political funding conference in Durban on Thursday, Godongwana said it's unacceptable that some political parties don't submit annual audited financial statements. Godongwana's own political party, the African National Congress (ANC), was among those fined by the Electoral Court last year for falling foul of the law in this regard. The finance minister questioned whether the IEC was the appropriate body to keep political parties in check over their finances, saying it puts the institution at risk of accusations of bias and a lack of independence. "I'm from the ANC. When they do it to us, we say they've been captured. When they do it to another party, they say Ramaphosa has sent them." With a court challenge still pending over plans to double the annual private funding limit to R30 million, while also raising the threshold for declaring donations to R200,000, Godongwana said he hoped the matter was settled before next year's local government elections. He said that the conference should consider the implications of political parties purely being funded by the state. "That raises the question: What is the optimal level of funding and what is the criteria for that? We complain that departments are inefficient. Should we fund political parties for inefficiencies as well?" Godongwana also hinted that if the revenue allowed, more money could be set aside to fund next year's local government election, in addition to the R1.4 billion already allocated in this year's budget.
Eyewitness News
11 hours ago
- Business
- Eyewitness News
SA's greylisting a lesson for govt to operate as a whole, says Godongwana
CAPE TOWN - Finance Minister Enoch Godongwana says government has learnt valuable lessons from being greylisted by the global anti-corruption watchdog, the Financial Action Task Force. This includes increased oversight on whether money guised as political party donations is being used for terrorism activities. Addressing a symposium on political funding in Durban on Thursday, Godongwana said being greylisted had been a good challenge for government. Government's investment and trade prospects were said to have been severely dented when it was greylisted by the FATF in February 2023. Since then, the government has been under the whip to tick off 22 action items to prove it's got a grip on the prevention of money laundering and anti-terrorism financing. The country was removed from the notorious FATF list last week, after introducing new legislation and tightening its financial controls. Godongwana said it was the first time an omnibus bill was tabled, that cut across government departments. 'It was a positive development in that sense, in that it taught us how to operate and work as government, as a whole.' Godongwana says he was being alerted by the United States every six months about South African bank accounts being sanctioned on suspicion of financing terrorist activities.
TimesLIVE
12 hours ago
- Business
- TimesLIVE
Godongwana proposes full public funding for political parties
Finance minister Enoch Godongwana is proposing political parties be fully funded by public money, arguing reliance on private donors undermines accountability. Speaking at the Electoral Commission of SA's (IEC) inaugural symposium on political funding on Thursday, he said: 'In my view, political parties must be fully publicly funded. Political funding for political parties from the public purse carries with it obligations — there's going to be accountability and transparency. The auditor-general must be able to audit for that accountability.' Godongwana said there is need for a funding regime that ensures stability, transparency and participation. However, he cautioned that economic challenges and reduced revenue collection could limit the creation of a common public funding pool. 'Between the 2011/12 financial year to date, we've only given R3bn to political parties,' a figure he cited to highlight underfunding of parties. He also questioned the IEC's role in overseeing political funding, asking, 'Are we not putting the IEC in a position of a conflict?'
The South African
13-06-2025
- Business
- The South African
HOW government ineptitude wiped out R127 billion in TWO months
In unprecedented circumstances for the South African government, the country's predicted GDP fell by R127 billion between March and May 2025. How can anyone forget that Finance Minister Enoch Godongwana under GNU needed three stabs at tabling a fiscal budget in 2025? Initially, the Finance Minister's first Budget Speech was cancelled on 19 February 2025. Until he finally delivered his first address on 12 March 2025. In it, the Minister pegged South Africa's economic growth at an average of 1.8% over three years. Nearly 45% of residents receives some form of SASSA grant, which many argue is creating unsustainable dependency on social welfare. Image: File However, government saw that budget framework overturned in the court proceedings over the controversial VAT increases. And the process needed to begin again. Therefore, on 21 May 2025, Godongwana delivered an updated 2025 Budget. and in it GDP growth had weakened to 1.6% over three years. That 0.2% may not sound like a lot less, but over three years it represents R127 billion, reports Daily Investor . 'Global growth has faltered, and South Africa's economic outlook has also weakened, with GDP expected to grow by only 1.4% in 2025. Since the 2025 Budget Review publication in March, greater uncertainty and trade fragmentation have contributed to a weaker economic outlook,' justified Minister Godongwana. Is GNU helping or hindering South Africa, in light of the 2025 fiscal budget fiasco? Image: File However, on the face of it, aren't' economic circumstances improving? Eskom's power supply to the country is better than ever and fuel prices have been dropping all year. The trade feud with the United States government looks to be in check (for now) and there have been interest rate cuts across the board. So, why the sustained bleak outlook? Critically, the government spends the most money each year on two things: Servicing debt and social welfare. Neither of which create jobs to bring any money back into government coffers. Likewise, the International Monetary Fund (IMF) recently cut its economic growth forecast for South Africa to just 1%. Way lower than the anticipated 1.6%. And if the South African economy only grows by 1%, as the IMF predicts, even this subdued budget will have a big hole. As such, if government is forced to borrow yet more money, the already high debt-to-GDP ratio will only worsen … Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Eyewitness News
12-06-2025
- Business
- Eyewitness News
Godongwana says his budget can't be faulted for not apportioning money to where it's most needed
CAPE TOWN - Finance Minister Enoch Godongwana said his budget could not be faulted for not apportioning money to where it was most needed. Following a second successful attempt at passing the fiscal framework which underpins the national budget on Wednesday, Godongwana said that it was now up to MPs to ensure the money was spent correctly. The budget allocates one trillion rand for infrastructure spending over the next three years. "Is that money going to be used efficiently and effectively. That should be the concern of these members. But you can't fault the budget. If it's not spent properly, that's your duty as Parliament to do your oversight." Parliament's finance committees will now get to work in scrutinising the money bills which allocate money to all spheres of government. ALSO READ: • Parliament gives Fiscal Framework and Revenue Proposals underpinning budget green light • GNU parties support 2025 fiscal framework and budget, opposition parties call it anti-poor
