The national Treasury moved to secure maximum market stability ahead of the Budget next month when it announced its new director general and two key senior positions. Incumbent Lesetja “Congress” Kganyago takes over just as the final touches are put on the Budget, which will be unveiled on February 18.
He has been a dead cert for the top job, though the Treasury still advertised the position. He beat 22 applicants for the position. Kganyago’s appointment is the reaping of a succession-planning harvest at the Treasury. Kganyago said he sees the appointment as a culmination of a process that began in 1999, when he was asked to lead the process of consolidating the departments of finance and state expenditure into the national Treasury. He described the appointment as an “honour to lead the concentration of some of the finest minds in economics and finance”. He sees his most immediate challenges as being to improve efficiencies within the department, to “harness interdepartmental relations and maintain Treasury’s good image” and make Treasury “the first port of call for young professionals in economics and finance”.
Kganyago was previously deputy director general for economic policy and international financial relations.
While other government departments are facing a brain drain to the private sector, Kganyago says the revolving door at the Treasury is swinging inward. Because of the experience it offers, it has been able to attract top young financial talents who are willing to take salary cuts.
Announcing the appointment, Minister of Finance Trevor Manuel spoke of a man he recruited to the African National Congress’s economic policy unit as a bookkeeper for the then-Northern Transvaal region. The chairperson of the region was government spokesman Joel Netshitenzhe, who was also present at the announcement, who had to be persuaded to allow Kganyago to move. This is where the partnership between Manuel and Kganyago began, over 12 years ago.
Kganyago takes over from former director general Maria Ramos, who now heads Transnet. Manuel would not be drawn into speculation whether these appointments are made with the expectation that he will be retained as the treasury’s political head. “I serve at the pleasure of the president,” he said, “and besides, these are not lifetime appointments.”
Two other key positions were filled. Noted deal-maker Phakamani Hadebe takes over as deputy director general responsible for asset and liability management. Previously chief director in the division, Hadebe takes over from Brian Molefe, who now heads the Public Investment Commission.
Hadebe’s division is responsible for the government’s highly regarded debt-management services. He says that over the past year and a half, 18 countries — among them Canada, Sweden, the United Kingdom as well as Israel and Namibia — have been to South Africa to seek advice on this function.
Hadebe says the department will be more proactive in managing risk and assets for government and parastatals, such as South African Airways. The airline faces hedging losses and has been technically insolvent, requiring the government to guarantee its debt.
Finally, former spokesman Logan Wort becomes chief operating officer of the National Treasury. This is a new post and one becoming increasingly popular in government departments.
Wort will still be responsible for the department’s communication function, but will now advise the director general on Treasury operations and business processes.