148,000 jobs lost after Nene’s 2015 axing - Mogajane
Treasury director-general Dondo Mogajane says according to Treasury's analysts and investigators 148 000 jobs were lost, and there was a reduction of over R300 billion in the JSE’s markets capitalisation.
Mogajane says according to Treasury's analysts and investigators 148,000 jobs were lost, and there was a reduction of over R300 billion in the Johannesburg Stock Exchange’s markets capitalisation.
Mogajane testified at the inquiry in Parktown on Friday.
Nene was fired and replaced by Des van Rooyen who only served in office for a few days.
#StateCaptureInquiry Mogajane says when Des Van Rooyan came to greet treasury staff, he kept on saying “hi hi hi, I just wanted to say hi. I wanted to tell you this place is going to change, we will be accessible to rural areas”— EWN Reporter (@ewnreporter) November 23, 2018
The firing, which became known as “Nene-gate”, sent the rand into a tailspin forcing Zuma to reverse his decision to appoint Van Rooyen and replace him with Pravin Gordhan.
Mogajane says he instructed his team at National Treasury to assess the impact of "Nene-gate" and the consequences were dire.
“The catastrophic fall of the rand, about 148,000 jobs were lost in terms of the model that we ran. We saw a reduction of about R378 billion in the JSE’s market capitalisation and we also costed the impact to at least 1.1% of GDP by the end of that year.”
N.B #StateCaptureInquiry Mogajane says he had a close working relationship with Jacob Zuma’s COO in Presidency Laleka Kaunda. He says when Nene was fires & Des Van Rooyan appointed, Kaunda sent him message saying “we didn’t see it coming, it’s tough”..— EWN Reporter (@ewnreporter) November 23, 2018
He says the impact of Nene’s axing is still being felt even now.
“I don’t think we were ever able to recover in the way that we had lost the market capitalisation of about R370 billion, the JSE has never recovered to that level, so the impact we’re still experiencing it today.”
He says business confidence was also at its lowest.
(Edited by Thapelo Lekabe)