Pravin Gordhan has been accused of speaking to the treasury’s management team ‘like they are kids’.
Finance Minister Pravin Gordhan's leadership style has been called into question as treasury employees accuse him of taking a unilateral decision to cut performance bonuses by more than half, while failing to condemn publicly the expenditure on the multimillion-rand upgrade of President Jacob Zuma's compound in Nkandla.
In a letter to staff, treasury director general Lungisa Fuzile justified the cut in performance bonuses, saying: "The amounts paid strike the balance between recognising the hard work of the treasury team in contributing towards the attainment of our government's objectives, and the fact that the South African economy is yet to reach the economic growth rates experienced prior to the global economic crisis, which commenced in 2008."
The decision has angered two major unions in the treasury – the National Education, Health and Allied Workers' Union (Nehawu) and the Public Servants Association of South Africa – which are now mobilising workers to begin strike action.
The unions are challenging the decision, arguing that it was in contravention of government policy.
"From the number of emails received from members on the performance bonus percentages, I can detect huge unhappiness," said Public Servants Association branch chair at the treasury Chris Kruger in an email addressed to members.
"From those emails it is clear that members qualifying for performance bonuses received letters indicating that the amounts to be paid in recognition of their average performance translate into percentages below the threshold as provided for in the policy. The policy is clear that in re-scaling the applicable percentages below 80%, the executive authority must consult with the labour unions through the departmental bargaining chamber," wrote Kruger.
In an email to union members, Nehawu's secretary at the treasury, Themba Mpakati, said: "We ask Nehawu members to mobilise all the affected workers and those sympathetic to the cause of the poor and [the] working-class struggle to join our struggle. We have nothing to lose but our chains. Even during the old times of slavery, we are told that the slaves were at least given [the] fruits of their labour by their masters."
A senior treasury official, who asked not to be named, said the morale of workers was low. "Since he [Gordhan] was appointed as minister, things have never been the same in the national treasury. He brought a management style that is foreign to the team of the national treasury. He sometimes speaks to the management team like they are kids. His leadership style has seen many of the senior treasury employees, including former director general Lesetja Kganyago, leaving."
The official also claimed that Gordhan was out of touch with his staff members.
"All he is focusing on is making sure that he is reappointed as the minister of finance after next year's election. People here say that this is one of the reasons he does not condemn the enormous amount of taxpayers' money that was spent on the president's residence. He [Gordhan] won the first goal politically by being appointed to the national executive committee of the ANC in December last year."
Treasury spokesperson Jabulani Sikhakhane defended the decision to cut the bonuses, saying the payment was not a right, but the outcome of a performance assessment of employees throughout the financial year.
He rejected suggestions that Gordhan was preoccupied with politics and was neglecting his role at the treasury. "There is no basis in fact for insinuation that the minister of finance is behaving in a manner designed to further his political career. Such insinuation is rejected with contempt."
Sikhakhane said that those who blamed Gordhan for the high vacancy rate in the department displayed a gross misunderstanding of its governance structure.
He said Gordhan was not responsible for filling vacancies, except those relating to the positions of the director general and deputy directors general.
"There are only two vacant deputy director general positions [that of the accountant general and that of the head of the intergovernmental relations] and both posts have only been vacant for less than five months. They have been advertised and are in the process of being filled," said Sikhakhane.
Democratic Alliance finance spokesperson Tim Harris said recent replies by the treasury to the party's parliamentary questions revealed a significant vacancy rate at senior levels within the department.
"In particular, 25 senior employees have left the department in the past year," he said.