While it is never spelt out on a Cabinet organogram, a finance minister is usually the most powerful person in a democratic government after the president.

Their authority over the national fiscus gives them far more actual power than a deputy president or even a home affairs or international relations minister.

This was one of the reasons for the tension between former president Jacob Zuma and Finance Minister Pravin Gordhan at the height of the State Capture era. Gordhan had been put into that position by ANC figures trying to rein in Zuma after he overstepped with his Weekend Special appointment of Des van Rooyen.

Godongwana appears to have no such problem.

He was the first finance minister in 25 years to change the inflation target, heâs the first to steer a Budget through a coalition government and, more recently, he withheld municipalitiesâ equitable share at a scale not previously seen.

He has clearly been able to rely on President Cyril Ramaphosaâs support through all of that.

PIC proof

The latest developments at the Public Investment Corporation (PIC) provide clear proof of this. Despite David Masondo remaining as deputy minister of finance, Godongwana felt confident enough to strip him of his role as PIC chair. Coupled with a Sunday Times report that Ramaphosa ordered Masondo to resign or face dismissal, this strongly signals Godongwanaâs growing political clout.

That said, it should be remembered that Masondoâs political position was weakened by two major factors.

First, as Daily Maverickâs Lindsey Schutters has explained, it appears the decision by the board chaired by Masondo to suspend Patrick Dlamini as PIC CEO was illegal. Masondo was clearly on the wrong side of this dispute.

And second, Masondo was in that position partly to represent the SA Communist Party, which is in the process of withdrawing from the Tripartite Alliance on its singularly stupid route to oblivion.

Consequently, Godongwana is now poised to reshape the PIC.

Any incoming chair â or potential new CEO â will understand that Godongwana holds the power to remove them, both as ârepresentative of the shareholdersâ and through his solid authority. This reality will likely keep them aligned with his agenda, giving him a critical window to restructure the institution.

The statutory requirement for a deputy minister from the economic cluster to chair the PIC is clearly failing. Overhauling this setup requires legislative reform â a process that demands not just time, but political will.

Godongwana appears to possess both the authority and the resolve to drive these changes. He would probably secure broad backing, with ANC MPs falling in line and the DA supporting any reform that curbs political interference. Establishing a stable, durable framework for the PIC could become a defining legacy.

Council crackdown

While Godongwana has taken a firm stance at the PIC, he has been even more assertive in his handling of local government. His decision three weeks ago to withhold equitable share allocations from mismanaged municipalities raises sharp questions.

Granted, there is a compelling case against handing money to councils notorious for waste and mismanagement â a reality obvious to anyone living outside Cape Townâs well-serviced pockets. However, his legal authority to freeze these funds was always going to expire on Friday, 31 July 2026. Beyond that date, withholding the cash would constitute a breach of the law, making this a short-lived tactic that forces the Treasury to release the funds anyway.

Furthermore, as economist Duma Gqubule noted on 702 on Wednesday morning, taking such action in an election year makes little strategic sense, as it primarily shines a spotlight on ANC-led councilsâ failures.

The same is true of his treatment of Joburg. Godongwanaâs letter to Joburg Mayor Dada Morero earlier this year telling him the city was running an unfunded budget and instructing him to withdraw the R10-billion wage increase for Samwu members was stinging in its tone. It seemed almost designed to be leaked.

When it did become public, it put Morero and his administration under intense pressure, along with negative publicity mere months before the local polls.

While the aim might have been to ensure that Morero changed tack and thus improve the ANCâs chances in the polls, that surely would have been a forlorn hope.

This leads to fertile ground for conspiracy theories, particularly when Luthuli House is clearly keeping Morero in office while Loyiso Masuku is the leader of the ANCâs Joburg region.

Of course, it could just be that Godongwana feels he has a duty to protect government money and that he had finally reached the point of absolute frustration.

Who can blame him?

That must also mean that now, after accepting that the councils must receive their money anyway, Godongwana has no instrument with which to force municipalities to waste or steal less money.

The only option left for the government is different levels of intervention, which is surely an unappealing prospect.

Succession

Powerful finance ministers inevitably raise a critical question: who replaces them when they step down?

In this case, Ramaphosa is certainly not going to hand the portfolio to Masondo after his fallout at the PIC. Meanwhile, the other deputy minister, Ashor Sarupen, hails from the DA â and given the immense authority of the ministry, the ANC is unlikely to surrender the post to a coalition partner (even if it becomes a major bargaining chip in future coalition talks).

This could explain Godongwanaâs assertiveness â he is well aware that he is hard to replace. As a result, he has the political breathing room to press forward with his priorities.

Next week, Godongwana will mark five years in the second-most powerful job in our politics. He may now want to use his accumulated power, and the next few years, wisely. DM