John Matisonn: GNU talks on a knife edge after hitting major obstacle

The Democratic Alliance (DA) may withdraw from coalition talks after an offer for the Trade and Industry ministry was replaced with Tourism, a lesser portfolio. This dispute threatens the formation of a new Government of National Unity (GNU). The DA's demand for substantial control, including deputy finance responsibilities, highlights tensions with the ANC. In contrast, a coalition in KwaZulu-Natal formed smoothly, excluding former President Zuma's MK Party, showcasing the complexity of South Africa's political landscape..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..Join us for BizNews' first investment-focused conference on Thursday, 12 September, in Hermanus, featuring top experts like Frans Cronje, Piet Viljoen, and more. Get insights on electricity and exploiting SA's gas bounty from new and familiar faces. Register here..By John Matisonn.The Democratic Alliance has threatened to withdraw from coalition talks for a new government, after an offer that included Trade and Industry among the DA's six ministries was downgraded to an offer to replace it with tourism, a much more junior portfolio. .___STEADY_PAYWALL___.The problem emerged after it appeared the parties were ready to announce agreement on what they are calling a Government of National Unity (GNU), but is really more accurately described as a multi-party coalition, since it excludes the third and fourth biggest parties..The parties had come close to agreement, after the DA demanded 12 and the ANC offered them only three and an announcement was expected. Then the DA heard that trade and industry was withdrawn and took it as a sign of negotiation in bad faith..At stake could be DA participation in provincial governments as well, since the DA has said it requires an "all or nothing" agreement for both national and provincial affairs..Difficulties continue in setting up government in Gauteng for the same reason as at central government – the unwillingness of key players in the ANC to accept the reality of their reduced power, by trying to maintain their ideological stance in all relevant ministries..Since 1994, Trade and Industry has been in the control of leftwing ministers taking the position with the blessing of the ANC's alliance partner, Cosatu, the largest trade union federation. A strong DA minister in this post would be set on cutting red tape and facilitating new economic activity..A similar problem has delayed agreement on a coalition government for the most commercially important province, Gauteng, where local ANC leaders would prefer a coalition with the EFF and/or the MKP. .Read more: Democratic Alliance initiates talks to form new government.On Sunday the Gauteng premier, Panyaza Lesufi, was intent on announcing a new executive without consulting the DA, until the national ANC reined him and demanded his media conference announcement be postponed..The ANC has agreed to give the DA six ministries and an equal number of deputies, but another sticking point was the exact role of the deputy finance minister, which the DA insisted on. Deputy ministers' responsibilities normally depend entirely on what their minister allocates them. .Deputy finance ministers in the past have chaired the Public Investment Corporation, the largest investment institution in South Africa, overseeing major public service pension funds. One deputy minister, Gill Marcus, who later became governor of the Reserve Bank, was also given responsibility for the South African Revenue Service (SARS)..Only the KwaZulu-Natal provincial executive was announced smoothly and has begun its work. Since the ANC is only the third largest party, with only 17.22 % 0f votes in the province, the IFP gained the premiership, and appointed two DA MPCs to senior positions, Finance and Public Works, three to the ANC , three IFP members to join him on the executive, and one to the NFP, giving it a single vote majority in the legislature..Perhaps one reason for the quick and practical resolution of the coalition agreement was that they have kept out former President Jacob Zuma's MK Party with 44.91% of the votes, so those who have come together and kept them out of power realise they cannot afford bickering in their coalition ranks. .The province retains a high presence of police and military, after authorities feared a repeat of public violence that broke out in July 2021 after Zuma was imprisoned to serve his sentence for contempt of court, and 350 people died. .A massive intelligence failure prevented security forces preparing for this outbreak..Read more: SA's GNU is not a 'social democratic consensus': Ivo Vegter.The national coalition talks, which have brought in ten parties, is a head-spinning moment for South Africans. It includes the liberationist Pan African Congress whose main policy plank is land restitution and the Freedom Front +, a white Afrikaner nationalist party largely representing conservative white farmers..No sooner had the FF+ joined than they announced that they had reached agreement with the ANC to "recognize the status" of Orania, the white territory started by the family of apartheid architect Hendrik Verwoerd..The FF + claimed this agreement was in accordance with Section 235 of the constitution provides for the recognition of the right of self-determination "as a community and language". The ANC has denied it has recognized Orania..However, the relevant section provides only for recognition of the notion of "the right of self-determination of any community sharing a common cultural and language heritage, within a territorial entity in the Republic or in any other way, determined by national legislation.".This issue seems to be a storm in a teacup..The posturing phase of the negotiations is probably nearly over, but of key importance will be exactly what portfolios opposition ministers get..All indications are that once in the jobs, they will be engaged in substantial contestation over the changes they want to make. The DA has asked for control of the appointments of directors-general in the departments they head, but it is not clear whether the ANC will accept that..It looks as though many questions about how to share power remain unanswered, opening the way for numerous battles to come..Read also:.Election '24: Navigating the era of coalition politics in SA – KatzenellenbogenThe United States fears unstable coalition rule in SA…ANC invokes Madiba in pursuit of government of national unity

John Matisonn: GNU talks on a knife edge after hitting major obstacle

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