ActionSA national chairperson Michael Beaumont has launched a scathing critique of South Africa’s government of national unity (GNU), declaring its instability rooted in a “fundamental lack of a coalition agreement”.
Speaking to Sunday World, Beaumont said the party was not eager to jump onto the GNU bandwagon even if an invitation was to be issued following its conditional support of the budget recently in Parliament.
This comes amid speculation from opposition benches in Parliament that it was possible that ActionSA, Bosa, and Rise Mzansi may stand to gain ministerial posts in President Cyril Ramaphosa’s anticipated cabinet reshuffle as payback for their cooperation in passing the budget.
However, Beaumont argued that the absence of a formalised pact between the ANC and DA has created a governance vacuum, with conflicting interpretations of the GNU’s “statement of intent” derailing critical processes like budget consultations.
“You cannot use a budget process to negotiate structural issues that should have been resolved upfront,” Beaumont asserted, referencing the contentious 0.5% VAT increase set for May 1.
“When a president is voted in by multiple parties, he cannot behave as if he’s the 100% shareholder. Those days are gone.”
His remarks follow ActionSA’s conditional support for the fiscal framework, which hinged on Treasury exploring alternatives to tax hikes – a demand now central to coalition renegotiations.
The VAT increase has emerged as the flashpoint in coalition tensions. Bosa leader Mmusi Maimane revealed his party is exploring legal avenues to reverse the hike, stating: “We need clarity on whether this requires a revised fiscal framework or legislative intervention.”
However, he cautioned against austerity-driven solutions: “South Africa’s gross capital formation is critically low. We need a growth plan, not just expenditure cuts.”
ActionSA has doubled down, refusing to entertain further talks unless the VAT increase is scrapped.
“Our participation hinges on removing these burdens on South Africans,” Beaumont emphasised, though he left the door open for future negotiations. “If the GNU collapses, we’d listen to proposals but only after addressing structural flaws.”
The DA’s potential exit from the GNU looms large.
An ANC national working committee insider noted, “If the DA leaves, Bosa and ActionSA could form a 204-seat majority, but it’d be unstable.”
The DA faces mounting criticism for initially backing the VAT hike, with one veteran league member accusing it of “disingenuity” as its ministers “benefit from the very budget they rejected”.
In its submission to the discussion, the ANC Veterans League has urged realism in fiscal reforms, warning that scrapping the VAT hike without alternative revenue streams would force “major austerity measures”, including cuts to policing, healthcare, and public
sector jobs.
“Improving tax collection and trimming the wage bill are medium-term solutions. The VAT increase now seems inevitable,” the league stated.
Their proposal calls for urgent state reconfiguration: reducing ministries, overhauling SOEs, and combating corruption.
