Pay back the Budget money, EFF tells Godongwana

The Economic Freedom Fighters (EFF) has demanded Finance Minister Enoch Godongwana bear the costs associated with the R2.3 million wasted on his ill-fated Budget Speech in February.

The Red Berets MP Omphile Maotwe made the call almost a week after the EFF and the DA took Godongwana to the Western Cape High Court over his first attempt to increase the VAT. The minister settled out of court with the DA and the EFF on the issue to set the VAT hike aside, with the court subsequently ratifying the agreement.

Maotwe, whose party had called for Godongwana to step down due to the Budget delivery fiasco, described the R2.3 million, which was spent preparing for the Budget, as wasteful expenditure. 

“All of this was avoidable had the minister simply listened to the millions of South Africans who rejected the VAT increase and demanded an inflationary adjustment to personal income tax to protect workers from bracket creep.

“We will demand that the minister personally pay for this wasteful expenditure, and that it be deducted from his salary,” said Maotwe.

Parliament had made all necessary preparations for the Budget to be delivered on February 19 despite calls from various parties, including the DA, to be postponed due to disagreement over the VAT increase. 

However, on the day of the event, Godongwana took to the podium as expected, but surprised the nation by announcing the postponement of his speech due to political pressure.

The expenses for the aborted Budget were revealed by Godongwana, who was known for imposing austerity measures in the government, in response to Maotwe’s parliamentary questions. 

The money was spent on printing documents, catering in Cape Town and Pretoria, translation, a sign language interpreter, a live reads radio station, English and Zulu language podcasts, and editing. 

In his response to Maotwe’s question of who would be held responsible for the financial losses, Godongwana said “N/A (not applicable)”.

National Treasury did not respond to questions this reporter sent to its spokesperson, Cleo Mosana, although the department's email automated system had acknowledged the questions. Mosana had also promised to respond.

National Assembly spokesperson Moloto Mothapo said there were no costs associated with rescheduling the delivery of the revised Budget Speech. 

“Unlike the SONA, which is a ceremonial sitting involving joint sittings of both Houses, formal invitations, special protocol arrangements, and extensive logistical coordination, the Budget Speech is delivered during an ordinary plenary sitting of the National Assembly.

“It does not require any special ceremonial arrangements beyond what is already budgeted for the routine sittings of the House,” said Mothapo.

When approached for comment, Freedom Front Plus's DR Corné Mulder said the Budget fiasco had financial implications “all round”.

They also suspended the 0.5 VAT increase pending Parliament’s final determination on the matter.

“The Minister of Finance shall pay 50% of the costs of the Democratic Alliance on the Scale C, such costs to include the cost of two counsel(s).

“The Speaker of the National Assembly and Chairperson of the National Council of Provinces shall pay 50% of the costs of the Democratic Alliance, jointly and severally, on Scale C, such costs to include the cost of two counsel(s),” read the judgment.

The ruling was the same when it came to the EFF’s legal costs. 

Instead of increasing tax, the DA proposed an amendment to the fiscal framework to reduce consolidated expenditure by R13.5 billion in 2025/26, R29.844 billion 2026/27, and R1.616 billion in 2027/28.

The EFF proposed the adjustment of personal income tax brackets in line with inflation, saying this would protect workers from being unfairly pushed “into higher tax brackets due to the rising cost of living”.

The Umkhonto weSizwe Party recommended an increase in wealth and corporate taxes and “a cut to the executive and costly patronage, and an end to corruption and fruitless expenditure”.

Following the flip-flopping on the Budget, Economist Dawie Roodts told the Daily News this week that “in the 40 years I have analysed this country’s budgets, I’ve never seen a finance minister make such a serious misstep”.

Godongwana has since faced political calls for his resignation, although he maintained in a statement released on April 27, immediately after the court ruling, that his decision to increase the VAT was constitutional and appropriate “given the limited options available to balance fiscal sustainability with service delivery needs”. 

Cape Times