Tue. Nov 12th, 2019

ANC hit back at Ace Magashule over Reserve Bank comments

ace magashule anc party listAce Magashule has been called a liar by Enoch Godongwana over his comments involving the mandate of the South African Reserve Bank.

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African National Congress head of economic transformation Enoch Godongwana has claimed that Ace Magashule was lying about resolutions made regarding the Reserve Bank at the party’s recent lekgotla.

Expanding the mandate

Earlier in the week Magashule, the ANC secretary general, claimed the ruling party was looking at expanding the mandate of the Reserve Bank to include job creation and gross domestic product growth.

This came about after shocking reports revealed South Africa’s economy had contracted by as much as 3.2% in the first quarter of 2019. The worst performance in more than 10 years.

“The National Executive Committee lekgotla (meeting) agreed to expand the mandate of the South African Reserve Bank beyond price stability to include growth and employment,” he told a press conference at the time.

Magashule’s claims refuted

This sparked some concern around the country as the now infamous reign of former president Jacob Zuma was punctuated by attempts to change the role of the Reserve Bank in the South African economy.

The response from the ANC was swift and categorical, with pretty much everyone leaving Magashule out to dry.

Finance minister Tito Mboweni, who is ultimately responsible for the mandate of the Reserve Bank, started things off by tweeting that there would be no quantitive easing employed and clarified the main focus of the institution.

This was followed up by a statement from Godongwana reassuring the country that no decision had been taken regarding the mandate of the SA Reserve Bank at the lekgotla.

He then followed it up with even stronger words.

“He is lying. None of what he said was resolved by the lekgotla on the Reserve Bank. I called him and he switched off his phone,” Godongwana said, according to IOL.

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