Bank loan

EFF calls for urgent meeting with Godongwana over World Bank loan



The Economic Freedom Fighters (EFF) say they have written to Finance Minister Enoch Godongwana and the Chairman of the Standing Finance Committee, demanding an urgent meeting on the approval of an 11 billion rand loan from the World Bank.

A joint statement from the Global Group and the National Treasury says the loan will help South Africa implement the economic reconstruction and recovery plan.

The party wants a detailed explanation of the basis of the loan, the conditions attached and the terms of repayment.

Some fear that the loans will cost the country its sovereignty and that the burden of repayment will ultimately fall on younger generations.

ALSO READ: SA Takes Low-Interest Loan From World Bank To Boost Covid-19 Response

“EFF rejects with contempt the irrational and senseless World Bank loan of R11 billion to South Africa. This will only lead to future subservience to the control and ownership of rating agencies, financiers and the Washington Consensus,” the party said in a statement. declaration.

The EFF said the National Treasury’s reasons for the loan are irrelevant, difficult to track and purely misguided in the absence of coherent and clear economic policy reform.

“The so-called reconstruction and economic recovery plan, like GEAR, was crafted in secret meetings sponsored by neoliberal crusaders deployed by the IMF and World Bank and a handful of co-opted subordinates.

The party has also criticized the country’s economic reconstruction and recovery plan, saying it does not serve poverty-stricken black South Africans.

“Some would have us believe that the National Treasury symbolizes excellence in state institutions,” the party said.

“The National Treasury claims to be at the forefront of economic recovery and reform.

“However, the latest GDP figure down -1.5%, unemployment down 34.9% and the collapse of public finances bogged down by irregular, unauthorized and unsuccessful spending tell a story of incompetence, poor management and total failure of government.”

Kleptocratic government can’t trust money

“It is a mistake to believe that the 11 billion rand from the World Bank will help the poor in any way.

“The same was said about the 70 billion rand loan from the IMF, but parasitic quacks from the ruling party looted it while hundreds died waiting for vaccines,” the EFF said. .

The EFF is not the only opposition to worry about the world Bank and IMF lend money to South Africa.

The IFP raised similar concerns, saying R500bn of Covid-19 funds had been diverted from state coffers and government officials looted with impunity.

The late Auditor General Kimi Makwetu has released a report detailing how the R500bn Covid stimulus package was delivered

Makwetu’s damning report revealed how government officials shamelessly and brazenly tapped into emergency funds set up to deal with Covid-19 in South Africa.

To date, no legal action has been taken for the missing funds.

Compiled by Narissa Subramoney

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