Cape Town – The African National Congress (ANC) national spokesperson, Mahlengi Bhengu-Motsiri, has defended Finance Minister Enoch Godongwana against calls for his resignation, stating that such a demand would only be justified if there were clear evidence of him failing to adhere colonel to specific policies, laws, or ethical standards.
Her remarks come in response to the Economic Freedom Fighters (EFF) and other opposition parties, including the MK Party, demanding Godongwana step down following a Western Cape High Court ruling on April 27, 2025, which suspended a proposed 0.5% Value-Added Tax (VAT) increase and overturned the National Assembly’s resolution adopting the Joint Standing Committee on Finance’s Fiscal Framework and Revenue proposals.
The EFF’s Statement on the Withdrawal of the 2025 Budget and the VAT Hike
-Furthermore, the EFF calls for the immediate resignation of the Minister of Finance and the Director General of the National Treasury. This entire budget fiasco should be a reflection for the Minister of… pic.twitter.com/12mkwdOTDC
— Economic Freedom Fighters (@EFFSouthAfrica) April 24, 2025
The VAT hike, initially set to raise the rate from 15% to 15.5% starting May 1, 2025, was intended to address a fiscal shortfall but faced significant public and political opposition due to its potential impact on South Africa’s struggling households amid sluggish economic growth.
Speaking during an interviews with SABC news, Bhengu-Motsiri emphasised that no evidence suggests Godongwana violated his oath of office, saying, “Any resignation that gets occasioned must be triggered by a particular policy, a particular law or a particular ethical standard. So we are not certain that is correct because there’s never been a time where the current minister of finance did disobey his oath to office unless we can be presented with that particular thing.”
She welcomed the court’s ruling, which halted the VAT increase and required Godongwana to table new budget instruments from scratch, as a step toward ensuring proper parliamentary processes.
(Courtesy of SABC News)
The ANC’s support for Godongwana was further reinforced by ANC chief whip Mdumiseni Ntuli, who highlighted the party’s role in persuading the minister to reverse the VAT hike, according to City Press.
ANC secretary-general Fikile Mbalula, also dismissed calls for a reshuffle, asserting that Godongwana’s position remains secure.
“He has done the job that was expected of him. He has consulted political parties and those who chose not to engage him, did not engage him. We engaged with political parties. Others told us to get rid of so and so, and then we will talk,” EWN quoted Mbalula as saying during a media briefing last week.
Godongwana himself has maintained that he will not resign, asserting that his constitutional duty is to propose money bills, regardless of their popularity.
In an interview with Reuters on April 24, 2025, he said, “My job is to introduce money bills – nothing says they must be popular.”
The reversal, however, has created a R75 billion revenue shortfall, prompting Godongwana to draft a revised fiscal framework and explore alternative revenue sources or spending cuts.
The National Treasury acknowledged the need to revisit expenditure decisions and scrap measures intended to cushion low-income households from the VAT increase.
The VAT saga began with Godongwana’s budget speech on February 19, 2024, which proposed a 2% VAT increase, later revised to 0.5%. The proposal faced immediate backlash, with the EFF rejecting it outright and the DA warning it would disproportionately harm the poor.
Public discontent, coupled with legal challenges from the DA and EFF, led to the court’s intervention.
The ruling has raised questions about the administrative challenges businesses face due to the late reversal and the government’s ability to address the budget gap without further economic strain.
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Compiled by Betha Madhomu
