EFF and IFP concerned about kleptocracy government borrowing more money. Future generations will be the brunt of loan repayments. Picture - iStock.
The Economic Freedom Fighters (EFF) says it has written to Finance Minister Enoch Godongwana and the Chairperson of the Finance Standing Committee, demanding an urgent meeting over the approval of an R11 billion loan from the World Bank.
A joint statement by the World Group and the National Treasury states the loan will assist South Africa to implement the Economic Reconstruction and Recovery Plan.
The party wants a detailed explanation for the basis of the loan, conditions attached and repayment terms.
There are concerns that loans will cost the country its sovereignty, and that the burden of repayment will ultimately fall on the younger generations.
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“The EFF Rejects the irrational and senseless R11 billion World Bank loan to South Africa with contempt. It will only lead to future bondage to the control and ownership of rating agencies, financiers, and the Washington Consensus,” said the party in a statement.
The EFF said National Treasury’s reasons for the loan are unrelated, difficult to follow and purely misdirected in the absence of coherent and clear economic policy reform.
“The so-called Economic and Reconstruction and Recovery Plan, like GEAR, was developed in secret meetings sponsored by neoliberal crusaders deployed by the IMF and the World Bank and a handful of co-opted subordinates.”
The party also criticised the country’s Economic Reconstruction and Recovery Plan, saying it doesn’t serve poverty-stricken black South Africans.
“Some want us to believe that the National Treasury symbolises excellence in state institutions,” said the party.
“The National Treasury claims to be leading economic recovery and reform.
“However, the latest GDP figure of -1.5 per cent decline, unemployment of 34.9 per cent and the collapse of public finances mired by irregular, unauthorised and fruitless expenditure tells a story of incompetence, mismanagement, and the complete government failure.”
“It is a fallacy that the R11 billion World Bank will help poor people in any way.
“The same was said about the R70 billion IMF loan, but parasitic charlatans of the ruling party looted it while hundreds died while waiting for vaccines,” said the EFF.
The EFF is not the only opposition to raise concerns about the World Bank and IMF loaning money to South Africa.
The IFP raised similar concerns, saying that R500 billion of Covid-19 funds was siphoned from state coffers and that government officials looted with impunity.
The late Auditor-general Kimi Makwetu published a report detailing how the R500 billion Covid stimulus package was disseminated
Makwetu’s damning report revealed how government officials sticky fingers unashamedly and brazenly helped themselves to the emergency funds put into place to deal with Covid-19 in South Africa.
To date, there have been no prosecutions over the missing funds.
Compiled by Narissa Subramoney
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