The National Treasury said on Monday it could not confirm reports that the head of budget, deputy director-general Michael Sachs, had resigned.
"For the moment we cannot say anything, but we will release a statement before the end of business today," a spokesperson said.
Media reports said Sachs, a Treasury veteran of 10 years, walked out in protest last week at interference by the Presidency in the budget process, notably around the issue of funding free tertiary education.
South Africa's rand is plummeting today on reports that Zuma has taken control of Treasury's budget process to push through a R40bn free-tuition plan. Budget chief Michael Sachs has resigned; more resignations expected.
— Geoffrey York (@geoffreyyork) November 13, 2017
The Sunday Times reported at the weekend that Sachs threatened to quit if Zuma were to drive through a plan to divert R40 billion from existing budget allocations to fully subsidise tertiary education for families with a combined annual income of less than R350 000.
From a technocratic perspective, resignation of Michael Sachs is arguably as much of a blow to National Treasury as the removal of the finance minister. Let that sink in... https://t.co/BTxPwzFn68
— on the periphery (@peripheralecon) November 13, 2017
National Treasury’s role in keeping a lid on government spending and finding the best ways to grow the economy has taken a back seat to the Presidential Fiscal Committee, Fin24 reported.
DA finance spokesman David Maynier said on Monday: "The shock resignation of veteran budget office head, Michael Sachs, which is a huge blow to National Treasury, confirms our fears that decision-making on budget priorities, and the budget itself, have now been centralised under President Jacob Zuma.
The capture of @TreasuryRSA is complete. Zuma's cronies now control everything. Sad day for SA. So long Michael Sachs.
— Stu Pen Diss (@StueyMax) November 13, 2017
"We now have: a “Presidential Fiscal Committee” making decisions about the budget at the expense of the Minister’s Committee on the Budget; a “Mandate Paper” setting out budget priorities, in terms of a new budget prioritisation framework, compiled by the Department of Planning, Monitoring and Evaluation, at the expense of National Treasury; and that is not to mention rogue elements, such a Morris Masutha, who are reportedly peddling a R40 billion budget-busting plan for higher education, with the support of President Jacob Zuma.
"What this means is that in the middle of a 'fiscal crisis', which Michael Sachs himself described as the most challenging since the global financial crisis, decision-making on the budget has been plunged into chaos.
Treasury's Deputy Director General responsible for budget, Michael Sachs has reportedly resigned in protest against President Zuma's Free Education. pic.twitter.com/rOzdq3NrWo
— Entrepreneur Zone (@SayEntrepreneur) November 13, 2017
"And it seems that National Treasury are slowly being 'defanged' and reduced to 'bookkeepers', with declining influence over budget priorities, and the budget itself, under President Jacob Zuma.
"That is why I will write to the chairperson of the standing committee on finance, Yunus Carrim, requesting him to schedule an urgent hearing on this matter before the end of recess in Parliament.
"We can only hope that there is no snowball effect and that other senior officials at the apex of the system hold steady do not resign from National Treasury."