EFF statement on the appointment of Ismail Momoniat as National Treasury Acting Director-General

8 June 2022

The Economic Freedom Fighters rejects the appointment of Ismail Momoniat as National Treasury Acting Director-General with the contempt it deserves. The white capitalist establishment was able to capture and control the National Treasury and South Africa's macroeconomic policy through people like Ismail Momoniat, who continues to serve the interests of capitalists at the expense of workers and the poor majority of South Africa.

Momoniat was appointed by the apartheid government with the intention of co-opting a faction of the ANC to perpetuate the apartheid economy and has dedicated his time to micromanaging the National Treasury on behalf of the rogue unit of Pravin Gordhan and the white capitalist establishment.

The EFF has previously warned South Africans about the toxic control of Momoniat, including the micromanagement of the former Director-General Dondo, deputy ministers and ministers. Momoniat has successfully managed to micromanage taxation and financial sector legislation at the behest and benefit of the largely white-owned financial sector that continues to exclude and exploit the majority of black people. The National Treasury practices an undemocratic approach to policy formulation because of central figures like Momoniat, who were central to all National Treasury presentations in Parliament, including in areas of the department with equally senior officials but were undermined and subordinated to Momoniat.

Momoniat was central to National Treasury efforts to undermine transformative and progressive legislative proposals in Parliament. The EFF introduced the Banks Amendment Bill to allow state-owned entities to apply for banking licenses and the South African Reserve Bank Bill to nationalise the Reserve Bank, and Momoniat was at the forefront of undermining these proposals. He also undermined efforts inside the National Treasury to establish a state bank, even though the former Minister of Finance and the Deputy Minister had put forward a practical proposal to acquire South African Reserve Bank shares in African Bank as a launch-pad to form a state bank.

The EFF has previously called out Momoniat, and he was defended by the white media establishment. The continued presentation of the National Treasury as competent and an example of public sector excellence is misguided and false praising of white-dominated department, particularly those critical units within the National Treasury such as economic policy, and asset and liability management. This is made worse by the revolving door for senior managers between the National Treasury, regulatory bodies and financial institutions, particularly banks, that amounts to policy and regulatory capture. Momoniat appointed Katherin Gibson as a consultant to draft the Financial Sector Regulatory Bill, and she was falsely paraded as a Chief Director. Today, Gibson was appointed as Deputy Commissioner of the Financial Sector Conduct Authority, which Momoniat will micromanage.

The EFF is aware that there are plans to keep Momoniat in the National Treasury beyond his retirement date of August 19, 2022, and this appointment is part of the plan. Young professionals at the National Treasury are skilled and should be allowed to do their jobs without being micromanaged by Momoniat on behalf of Pravin Gordhan's rogue unit and to protect the white capitalist establishment.

Issued by Sinawo Thambo, National Spokesperson, EFF, 8 June 2022