Citizen Reporter
1 minute read
31 Mar 2020
3:05 pm

EFF rejects Mboweni’s ‘flirtations’ with IMF and World Bank for funds to fight Covid-19

Citizen Reporter

The party cautions that such a move will worsen the country’s socioeconomic conditions.

Finance Minister Tito Mboweni has come under fire from the DA over his admission that part of the IMF loan could be used to pay salaries. Picture: Emmanuel Croset

The EFF has said that it rejects Finance Minister Tito “Mboweni’s flirtations” with the IMF and the World Bank to take loans to finance the fight the coronavirus outbreak.

“It is now indisputable that the involvement of the IMF and World Bank in different countries has led to massive reductions in social expenditure, particularly healthcare, education, social development, housing, and salaries of public servants,” the EFF said in a statement.

The party accused Mboweni of pursuing right-wing, neoliberal “and decidedly dangerous” economic policies.

The EFF said the minister’s austerity budgeting “and so-called structural reforms” would weaken the state’s capacity “to lead a developmental trajectory that should necessarily develop South Africa’s productive economic sectors, create jobs, defeat poverty and reduce inequalities”.

The party demanded that government “reprioritise all its expenses towards stabilisation of healthcare” in the country.

The EFF suggested that the cabinet should be cut by 50% and that all deputy ministers should be removed to refocus funds towards the country’s healthcare.

“Government should not take advantage that we are all united in the fight against coronavirus outbreak, and now begin to engage in catastrophic activities such as taking dangerous loans from the IMF and World Bank, which will certainly come with macro-economic conditionalities.”

(Compiled by Makhosandile Zulu)

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