Deputy minister quits amid pension funds probe

It is unclear why Mr Godongwana is leaving but he resigns amid an inquiry into the whereabouts of R100m in workers' pension money funnelled to Canyon Springs, a company part-owned by Mr Godongwana and his wife, Thandi.

"I have a lot of work to do in the ANC. For this year, I will be focusing on that," Mr Godongwana said yesterday, refusing to comment further.

Mr Godongwana chairs the African National Congress's economic transformation committee - seen as a key player in determining policy positions to be discussed at the party's policy conference in June.

Business Day understands Mr Godongwana will appear before an inquiry that resumes on January 24. He testified last year but has been recalled to answer more questions.

The inquiry was established after Canyon Springs was liquidated and could not repay the workers' money.

The matter involves Cape asset manager Trilinear, which managed money on behalf of, among others, the South African Clothing and Textile Workers Union (Sactwu). Trilinear chairman Sam Buthelezi and former Sactwu benefits co-ordinator Richard Kawie were arrested on charges related to the alleged defrauding of workers. Mr Buthelezi was given bail of R500000.

Asked whether Mr Godongwana had been pushed out of the government and whether the inquiry into workers' money had something to do with it, presidential spokesman Mac Maharaj said: "He (Mr Godongwana) informed the president he would wish to resign for personal reasons.

"The president asked him to stay on until mid-January."

Mr Maharaj could not say what the personal reasons were, but in a statement yesterday said the president had accepted the resignation and "thanked the deputy minister for his dedicated service and duty to his portfolio and to the national executive ".

Today is Mr Godongwana's last day as deputy minister. President Jacob Zuma said the resignation was a huge loss given Mr Godongwana's expertise, skills and experience.

He has been on the ANC's national executive committee since 1997.

The charismatic former trade unionist became Eastern Cape finance MEC in 1997.

At the time, the provincial government was in such financial shambles that it battled to pay its staff's pension deductions to retirement funds. He was credited with turning around the provincial government's finances but it was back in the red when he was fired in 2004.

After he was fired, Mr Godongwana was named in the report of a commission of inquiry into Eastern Cape maladminstration and corruption.

However, the Eastern Cape High Court found the commission went beyond its terms of reference and failed to seek comment from Mr Godongwana and others it implicated.

In the early 2000s, he was a considered a rising star who could have been a possible successor to Trevor Manuel as finance minister. He missed out on the finance deputy minister's position in 2009. He was made deputy minister of public enterprises in Mr Zuma's first Cabinet, moving to the economic development portfolio in 2010.

Previously he was a general secretary of the National Union of Metalworkers of SA and a leader of the South African Communist Party.

Source: Business Day