Zuma's sacking of Nene cost SA 148 000 jobs, 1% of GDP - Treasury DG

2018-11-23 15:42
Former finance minister Nhlanhla Nene.

Former finance minister Nhlanhla Nene. (Photo: Netwerk24)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Treasury director general Dondo Mogajane told the judicial commission of inquiry into state capture that when Nhlanhla Nene was removed as finance minister in 2015, there was a reduction of about R378bn in market capitalisation on the JSE.  

"Business confidence was at its lowest following Nene's removal," he told inquiry chairperson, Deputy Chief Justice Raymond Zondo on Friday. 

At the time, Mogajane was the deputy director general for public finance at National Treasury.

"You say in paragraph 4 that there were serious adverse consequences flowing from the removal of Minister Nene and I'd like you to get there and explain to us in your own words what those consequences were," evidence leader advocate Vincent Maleka said to Mogajane.  

Based on National Treasury's modelling of the micro economic impact of Nene's axing, Mogajane said: "There was indeed what I term [a] catastrophic fall of the rand at the time and the impact was that we saw about 148 000 jobs lost in terms of the model we ran. We saw a reduction of about R378bn in the JSE markets capitalisation. We also costed the impact of at least 1.1% of GDP by the end of ... 2017."

Mogajane said the period nominated for calculation of their model was from the announcement of Nene's exit, until his replacement, before the Asian market opened that Sunday.    

He said the impact of Nene's removal could still be felt, even today.  

"Can you, in National Treasury, confirm the extent of business and associated revenue the Gupta-owned entities received from government?" Maleka asked. "Can you model that revenue stream, especially in 2015?"

Mogajane said he would not be able to give the cost structures, but added that he had already requested staff to model the expected cost and revenue.

"I have asked our chief procurement office, together with our financial management office, to model the cost and the revenue that would have been accrued to the Gupta empire ... I will certainly make it available to the commission." 

Nene was replaced by Des van Rooyen who in turn, was replaced by Pravin Gordhan (now public enterprises minister) just days later.

NEXT ON NEWS24X

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

 
/News
Traffic Alerts
Traffic

Jobs in Cape Town [change area]

Jobs in Western Cape region

Reporting Accountant

Cape Town
Network Finance Professional / Prudential
R310 000.00 - R360 000.00 Per Year

IT Manager (contract)

Cape Town CBD
Communicate Cape Town IT
R330 000.00 - R458 000.00 Per Year

Cluster Financial Manager

Cape Town
Network Finance
R950 000.00 - R1 000 000.00 Per Year

Property [change area]

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.