Media is creating impression that Phala Phala saga causing economic instability: Godongwana

Finance Minister Enoch Godongwana says should President Cyril Ramaphosa resign, the country’s economic policy won’t change.

Godongwana has stressed that it is not ideal for the President to resign but if he did, that would not create economic instability in South Africa.

The rand and government bond prices fell sharply on Thursday as investors digested news that Ramaphosa may be impeached following a panel of experts’ findings against him.

Ramaphosa’s future hangs in the balance, after the Section 89 Independent Panel report found preliminary evidence that he may have violated his oath of office and committed misconduct.

Godongwana has told the media on the sidelines of ANC NEC meeting at NASREC, south of Johannesburg, to stop causing panic about reports of economic instability in the country.

“The stability has never been affected, it’s only you who are impacting a sense of instability. But the rand was affected, it was because you guys are creating an impression that there’s instability. I explained the rand moved from R17.60 to R17.35. I’m not saying there’s no leadership instability. From 2005 we’ve been having a crisis of this nature and it has never impacted on the micro variables and the stability of the economy. I’ve not met the President; I don’t know whether he wants to resign or not. I have not spoken to the President about such issues.”

Parliament must act with urgency

However, Business Unity South Africa (BUSA) earlier said the country cannot afford further erosion of confidence and instability, at a time when business is committed to work with government.

BUSA represents several big business entities in the country.

BUSA says the country needs a capable government that can fulfill its governance role ethically and efficiently.

In a statement, it said ongoing efforts to address ethical and moral challenges within government have been negatively impacted by the findings in the report.

BUSA is urging the Speaker of Parliament to expedite the processing of the report through Parliament and act with extreme urgency.

The organisation says the country needs clear direction in the next few days, so that a clear message is sent to citizens, investors, and others.

Reacting to the Finance Minister’s utterances, the Black Business Council says the Phala Phala issue is definitely causing uncertainty in the markets but stressed their confidence in the country’s financial institutions.

Black Business Council CEO Kganki Matabane on the Phala Phala saga:[embedded content]