Finance minister Tito Mboweni’s taking to social media to vent must be an irritation to some in the Union Buildings, as it exposes the shortcomings in President Cyril Ramaphosa’s administration. The centre is not holding.
Two days after the news that ratings agencies had downgraded SAA further into junk territory, Mboweni asked on Twitter: "OK, what should we do on SAA?" Followed by: "OK, do we need a national airline? Maybe that should be the question? Is it?"
This was after, amid fierce criticism, Mboweni allocated a further R10.5bn to the restructuring of the airline, following a cabinet decision to save SAA, which has been a drain on the national fiscus for years.
Mboweni earlier responded to the unexpected Fitch and Moody’s downgrades, with a negative outlook, as "painful".
Politically, the downgrades mark a clear message that ratings agencies do not have confidence in Ramaphosa’s administration to cut debt and grow the economy.
Thus far, there is little indication that individual ministers have a grasp of the current fiscal situation. Think of the ban on alcohol and tobacco during the lockdown and communications minister Stella Ndabeni-Abrahams’s approach on the SABC. When unpopular decisions are taken, the National Treasury is attacked and blamed. In the end those decisions are, at times, not implemented for political reasons.
Public sector trade unions have been on the warpath since Mboweni said the government could not afford to implement the third leg of the three-year 2018 wage agreement — a matter to be fought in the courts next week. But Ramaphosa and public service & administration minister Senzo Mchunu have been avoiding union requests to talk things through.
Mugwena Maluleke, chief negotiator for Cosatu-aligned unions, recalls the last time SA faced a dire financial crisis, under former president Nelson Mandela. He says Mandela called the unions before any confrontation over policy arose, explained the situation and informed them of the only way he could see to address the problem. Unions did not like it, but they were taken along in the process.
In his first term, Jacob Zuma took unions along too, but turned on them in his second. Then he also turned on the Treasury. It was in this era that the Treasury’s standing was eroded by the culling of senior public servants and bureaucrats.
Under former president Thabo Mbeki, with Trevor Manuel as finance minister and Tito Mboweni as Reserve Bank governor — the infamous "three Ts" — there was a clear centre, which mostly held.
The Treasury was accustomed to people disagreeing with its approach, but it largely enjoyed the support of the president and so was able to push through tough, unpopular but necessary decisions.
Ministers also did not publicly criticise each other. Once decisions were taken in the cabinet, they would take collective responsibility for those decisions.
Even unions got the message, says Maluleke. "Thabo was clear, he is governing and the government will take decisions … a ‘we were elected so we will take decisions’ kind of approach." Unions opposed Mbeki’s "authoritarian style", but they knew where they stood.
During the current crisis, there is deep uncertainty in all quarters. Ministers are seemingly absent in times of crisis or overreach their powers, collective decisions are being undermined or go unimplemented for lengthy periods. It’s a mess.
What is needed is leadership that is aware of the seriousness of the problem and one that is able to take the tough decisions to pull SA out of the swamp. Ramaphosa’s current approach is not good enough.
PODCAST: Finally, an SOE chairman standing up to political bullying