Ramaphosa, Mashatile defends Godongwana amid VAT debacle as Mashatile reportedly calls for accountability

PRESIDENT Cyril Ramaphosa’s unwavering support for Finance Minister Enoch Godongwana amid the Value Added Tax (VAT) debacle was reportedly causing internal rifts within the highest levels of government, with Deputy President Paul Mashatile allegedly advocating for the minister’s dismissal. 

The controversy erupted after Godongwana’s proposal to raise VAT by 2% sparked widespread backlash from opposition parties, labour unions, and civil society. The proposal was ultimately withdrawn following a legal challenge, but not before costing taxpayers an estimated R2.3 million in wasted budgetary processes. Godongwana was now expected to re-table the 2025 Budget Review on May 21. 

Sources within the ANC told Daily News that Mashatile has privately expressed discontent over the matter, believing that the president had shielded the embattled minister rather than holding him accountable. 

However, Mashatile’s special advisor Kieth Khoza refuted these claims as “mischief” that sought to “cause divisions within the government”.

“Whoever is behind this is fabricating an untruth and a lie. At no stage did the Deputy President express any views on Minister Godongwana and his role in government. This mischief seeks to cause divisions within the government,” said Khoza.

He added: “This allegation is not based on truth and is therefore rejected.”

According to one insider, the deputy president voiced his concerns during the May Day rally held at Curries Fountain in Durban, where he was among the event's key speakers. 

“The deputy president is not happy at all with how the matter was dealt with,” the source said. “He openly expressed the view that the finance minister should have at least faced some consequences or public rebuke from the president.” 

Another ANC figure confirmed these sentiments, adding: “Many leaders within the party, including Mashatile, feel that the president treated Godongwana with kid gloves.” 

The perception among some ANC insiders was that Ramaphosa’s defence of Godongwana may be tied to political loyalty. During the Phala Phala scandal, when Ramaphosa faced mounting calls to resign, it was senior ANC big hitters like Godongwana and national chairperson Gwede Mantashe who rushed to his defence.

“Ramaphosa is simply returning the favour. Godongwana stood by him during a critical time, and now the president is protecting him in return,” said the informant.

During his speech at the May Day rally in Mpumalanga on Thursday, Ramaphosa said: "This is something that we need to take on board and it doesn't need to lead to a minister of finance resigning or stepping down, no. It should be on all of us to say, what are we learning from all of this?"

Despite the denials, opposition parties have seized upon the VAT controversy, arguing that it reflected a deeper crisis of leadership and policy coherence within the Government of National Unity (GNU). 

Julius Malema’s EFF and the DA both took legal action against the initial VAT hike, leading to a court-ratified settlement that forced Godongwana to withdraw the proposal. 

EFF Member of Parliament Omphile Maotwe called the R2.3 million expenditure “wasteful” and demanded that Godongwana personally cover the costs.

“All of this could have been avoided if the minister had listened to the people,” said Maotwe.

“We told him to adjust personal income tax in line with inflation instead of burdening the poor with a VAT hike. Instead, he pushed forward with a plan that was both unpopular and, ultimately, unsustainable.” 

In the wake of the legal backlash, Godongwana attempted to revise the increase to 0.5%, but that too faced immediate court challenges. Facing increasing political pressure and the potential for a judicial defeat, he eventually settled out of court and withdrew the proposal entirely. 

However, Godongwana defended the move as necessary to plug a R75 billion shortfall in the national budget. 

“The proposal was constitutional and essential,” he said, insisting that tough decisions were needed to stabilise the country’s fiscal position. But the damage may already be done. The Western Cape High Court has since suspended the entire 2025 Fiscal Framework and Revenue Proposals, deepening scrutiny of Godongwana’s leadership. 

The uMkhonto weSizwe Party (MKP), which now serves as the official opposition to the GNU, has tabled a motion of no confidence in the minister. 

The party accused him of promoting “neoliberal dogma” and called for radical shifts in economic policy, including nationalising the South African Reserve Bank and mandating it to pursue employment and growth alongside inflation control. “South Africans deserve a finance minister who will prioritise their needs over market interests,” the party said in a statement.

As Parliament prepared for a contentious re-tabling of the Budget, the political fallout from the VAT debacle continues to unfold, raising questions not only about Godongwana’s future but also about the unity and direction of Ramaphosa’s administration.

DAILY NEWS