‘It’s not personal’: Masondo addresses Godongwana tensions

Deputy Finance Minister David Masondo has dismissed suggestions that his relationship with Finance Minister Enoch Godongwana has broken down over the governance crisis at the Public Investment Corporation (PIC).

Godongwana says their differences are limited to aspects of the governance of the state asset manager and that they continue to work well together.

His remarks come after African National Congress (ANC) secretary general Fikile Mbalula weighed in on the PIC saga during a media briefing last week Tuesday, saying a deputy minister must “stay in your lane” and warning that there “cannot be chaos” where a minister and deputy minister are at odds.

Mbalula also suggested that if such differences cannot be resolved, “someone must go”.

Responding to questions from Sunday World, Masondo rejected suggestions that the dispute centred on a personal rift between himself and Godongwana, saying the focus should instead be on restoring stability at the PIC following the appointment of a new board.

“The President has provided guidance on the PIC matter, and we must all support the newly appointed Board and its Chair, Seiso Mohai,” Masondo said.

“The less negative noise surrounding the PIC, the better for the institution, its shareholder and workers and the economy as a whole. This will enable the organisation to regain the stability it enjoyed for years following the Mpati Commission, until the past eight months.”

Masondo argued that the debate around the PIC had incorrectly been framed as a clash between himself and Godongwana, when the real issue concerned the governance relationship between the finance minister, as shareholder representative, and the PIC board.

“In terms of governance, unlike in a government department, where the principal political relationship is typically between a Minister and a Deputy Minister, the governance relationship at the PIC is between the shareholder, represented by the Minister of Finance, and the Board, even when the Board Chair also serves as the Deputy Minister,” he said.

“Reducing matters relating to the PIC to the relationship between the Deputy Minister and the Minister of Finance, rather than the governance relationship between the Minister, as a shareholder, and the Board, is incorrect.”

The comments come after weeks of tension over the PIC, triggered by the former board’s decision to place chief executive Patrick Dlamini on precautionary suspension following a whistleblower complaint.

The move exposed differences between the board and Godongwana after legal advice obtained by the board found that the board was legally allowed to suspend the chief executive without the minister’s approval. Godongwana subsequently questioned whether the board had exercised proper judgement before taking such a significant decision and expressed disappointment that he had not been informed beforehand.

Mbalula’s intervention added a political dimension to the dispute, with the ANC secretary general saying that ministers and deputy ministers should not be seen to be fighting publicly.

However, Masondo insisted there was no broader breakdown in his working relationship with Godongwana.

“I have no working relationship problems with the Minister of Finance. We have had healthy different views on some aspects of the PIC. Our Board exercised its fiduciary duties in accordance with law. Other than our different views on the PIC, we work well together on many areas of the finance department,” he said.

Masondo pointed to several recent engagements as evidence that the pair continue to work together despite their differing views on the PIC.

“This week, we concluded the process of interviewing candidates for senior management positions at the National Treasury, and together we met with various stakeholders, including the South African Reserve Bank. I also met with municipalities on the minister’s behalf to discuss the release of their equitable share. Work continues as normal. It is not personal, it is about the people of South Africa.”

The exchange comes just days after the Cabinet appointed a new eight-member PIC board chaired by deputy minister in the Presidency for Planning, Monitoring and Evaluation Seiso Mohai.

The appointments are aimed at restoring governance and stability at the state-owned asset manager following weeks of turmoil that culminated in the resignation of the previous board, including that of Masondo.

The deputy minster said all stakeholders should now rally behind the new board to enable the PIC to return its focus to managing the country’s public investments.

“The president has provided guidance on the PIC matter, and we must all support the newly appointed Board and its Chair, Seiso Mohai. The less negative noise surrounding the PIC, the better for the institution, its shareholder and workers and the economy as a whole. This will enable the organisation to regain the stability it enjoyed for years following the Mpati Commission, until the past eight months.”