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'Market-calming' Cabinet

May 11 2009 09:56 Troye Lund

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Cape Town - President Jacob Zuma's new cabinet reflects a shrewd shake-up and a dramatically different approach to finance, economic policy planning and monitoring government performance.

While he appointed South African Revenue Services chief Pravin Gordhan using special constitutional provisions available to him to appoint a maximum of two ministers who aren't members of parliament, Trevor Manuel has been elevated to a powerful, over-arching government planning commission in the office of the president.

Aside from a finance ministry, a new ministry of economic development will focus on economic policy making and ensure that departments follow a coherent and consistent policy, especially when it comes to trade policy which has tended to be at odds with economic policy as seen by the finance ministry.

This will be led by former general secretary of the Southern African Clothing and Textile Workers (Sactwu), Ebrahim Patel. Sactwu and the labour movement in general have welcomed Patel's appointment, especially seeing that its main gripe with former Thabo Mbeki's regime was that labour views were excluded, particularly when it came to economic policy.

In his first press briefing as state president at the Union Buildings, Zuma said he expected a positive reaction from the markets to the decision to replace Manuel with Gordhan who was responsible for turning a moribund tax collection agency around.

"I cannot predict the markets; I think the markets react to a number of issues, not only cabinet appointments, depending on how they feel and what is their mood. I think the markets are going to react very positively, normally."

Zuma rejected questions about Manuel having been moved because of criticisms about him having become too powerful.

"Trevor is being given a new structure, a very powerful structure that will draw up the national plan. He understands government inside out," Zuma said. He stressed that Manuel's understanding of government coupled with his efficiency would mean Manuel would bring meaning to the promise to make government more efficient and do so "with flying colours".

Manuel's job will be to come up with a national plan, which will have take a holistic view of the work of government and how to implement it. The planning commission will also be tasked with monitoring and evaluating government programmes and officials.

Zuma said: "Following extensive research on international models on how government in other parts of the world plan and monitor performance, we have decided to establish a national planning commission which will be based in the presidency. This would enable us to take a more comprehensive view of socio-economic development in the country."

Working alongside Manuel's planning commission inside the presidency will be another new ministry focused on monitoring and evaluating the progress of each department with a special focus on co-ordinating work between the three spheres of government.

This ministry will be headed by ANC National Executive Committee member, Collins Chabane who has also been instrumental in the ANC's transitional committee reviewing ways in which to boost the Zuma administration's efficiency quota.

In line with his overall statements about getting government working better and getting the "era of hard work" going, Zuma has also moved former Minister of Health Barbara Hogan to public enterprises. Before her appointment to the ailing Health Department, Hogan excelled as a member of parliament's finance committee.

Zuma said that she had been moved to public enterprises, which presides over entities which are notorious for functioning below par, as part of an ANC mission to move "capable comrades" into areas where "specific focus" was needed.

Former deputy minister in the Department of Trade and Industry and communict party central committee member, Rob Davies, has been promoted to minister of the department.

Revamp continues

The finance and economic arms of government were not the only ones that Zuma re-organised.

  • The Department of Minerals & Energy has been split into two separate departments headed by a minister each. Mining under Susan Shabangu and energy under Dipuo Peters.
  • The Department of Education will be split into separate ministries, one for basic education (headed by former Gauteng Education MEC Angie Motshekga) and the other for higher education & training (led by SACP general secretary Blade Nzimande).
  • The Department of Housing will be called the Department of Human Settlements to take on a more holistic focus and will be headed by business tycoon Tokyo Sexwale.
  • There will be a new Department of Rural Development and land affairs (led by former Eastern Cape MEC for agriculture Gugile Nkwinti).
  • The Department of Water Affairs & Forestry becomes the department of water & environmental affairs and will be headed by former minister in charge of minerals and energy Buyelwa Sonjica).
  • The new Department of Tourism will be headed by minister Mathinus Van Schalkwyk.
  • Agriculture becomes Agriculture, Fisheries & Forestry and will be led by former Western Cape MEC for agriculture and land reform Tina Joemat-Peterson.
  • The Department of Provincial & Local Government becomes Cooperative Governance & Traditional Affairs and will be headed by former minister in charge of provincial and local government Sicelo Shicheka.
  • A new ministry has been created for Women, Youth, Children and People with disability will be led by Noluthando Mayende-Sibiya who was president of the National Education Health and Allied Workers Union.

- Fin24.com

 
 
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