Gigaba thanks Tito Mboweni for ‘excellent’ job at Brics Bank

Cape Town – Finance Minister Malusi Gigaba thanked former SA Reserve Bank governor Tito Mboweni for his “excellent” two-year term on the Brics New Development Bank (NDB) board.

This comes after Treasury decided not to renew Mboweni’s role as a non-executive director on the board, and instead replaced him with Treasury director-general Dondo Mogajane.

“In a letter formally informing Mr Mboweni of the decision, Minister Gigaba has thanked Mr Mboweni for his excellent representation of the government of South Africa as a member of the board and chair of the audit, risk and budget compliance committee with commendable professionalism and dedication,” National Treasury said in a statement on Friday.

This week, Mboweni said he was “fired” from his role, saying his two-year stint was renewable.

“I served for two years and at the time of my appointment, I was told, via a letter from Minister Nhlanhla Nene, that the term was a renewable one. But alas, this has not been the case,” he wrote on Facebook. “Fired, you might say! It's OK. They are the government of the day after-all. They can do as they wish.”

However, Treasury said the decision was line with other members of the bank and was a cost saving for government.

“The nomination of Mr Mogajane by the Minister of Finance Malusi Gigaba and subsequent appointment will ensure that no additional costs are incurred further by government in remunerating an appointment from outside of public service while also enhancing strategic alignment and collaboration between the government of South Africa and the Bank,” Treasury said.

Treasury said the bank confirmed Mogajane was appointed as the new director representing South Africa.

“This follows the expiration of Mr Tito Mboweni’s term of service as Director of the NDB in early July,” Treasury said. “Mr Tito Mboweni commenced his term as South Africa’s Director at the NDB on 03 July 2015, for a 2-year term, which ended on 02 July 2017.”  

In addition, Treasury said Deputy Finance Minister Sfiso Buthelezi was appointed as the alternate governor of the NDB for South Africa. Treasury’s deputy director-general for economic policy Monale Ratsoma, in his capacity as acting deputy director-general for International and Regional Economic Policy, will continue to serve as alternate director of the NDB for South Africa.

“These appointments are also in line with the practice from the other founding members of the Bank whose representatives are from their countries’ Ministries of Finance and Treasury departments,” Treasury said.

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