The ANC Youth League, Cosatu and the DA are just some of the parties that have expressed condemnation of the government’s decision to lend R2.4 billion to crisis-ridden Swaziland.
|||Ann Crotty
The ANC Youth League, Cosatu and the DA are just some of the parties that have expressed condemnation of the government’s decision to lend R2.4 billion to crisis-ridden Swaziland.
After months of speculation and amid reports that the country was close to collapse, the National Treasury yesterday announced that the government had agreed to provide a conditional guarantee for a loan of R2.4bn from the SA Reserve Bank (SARB) to the Central Bank of Swaziland.
The loan will be made available in three tranches starting in August once the negotiations with the relevant parties have been finalised. The second and final payments will be made in October and February.
Repayment of the loan will take the form of a debit order against the Southern African Customs Union (Sacu) account that is held by the Reserve Bank on behalf of Swaziland.
The DA said that the loan, to the sole remaining absolute monarch in Africa, was based on vague and insubstantial undertakings. Yesterday the DA’s Stevens Mokgalapa called on Finance Minister Pravin Gordhan to assure South Africans that the financial assistance to Swaziland would not be used to sponsor King Mswati III’s lavish and indulgent lifestyle.
“Our grant to the Swazi government should go toward improving the lot of the people of Swaziland, who suffer under stifling poverty and political repression,” said Mokgalapa.
In yesterday’s statement the National Treasury referred to Swaziland’s approach to the South African government for financial assistance to alleviate its fiscal crisis.
“The decline in Sacu revenue by more than 60 percent, the delay in taking steps to adjust spending to the new environment, and the lack of fiscal and broader public sector reforms are the main causes of the crisis,” the Treasury said.
While there is likely to be some sympathy for the realisation that South Africa has little choice but to bail out a failing neighbour, there is likely to be widespread condemnation of the fact that the loan does not appear to be subjected to any conditions. The Treasury statement notes that the “loan guarantee is premised on four pillars”. The four pillars, which appear to be vague, include, confidence-building measures to be undertaken by the Swazi government, fiscal and related technical reforms required by the International Monetary Fund, capacity-building support to be provided by South Africa and co-operation in multilateral engagements.
The ANC Youth League said it was “totally opposed to the government’s granting of a loan to the Swaziland monarchy because it is tantamount to giving King Mswati pocket money to squander, whilst the people of Swaziland are suffering, with no rights”.
Cosatu said it was “shocked and disappointed” and was “firmly opposed to any loan which will bail out the cruel dictatorship of King Mswati, and leave his corrupt, anti-democratic regime in power”. It said the South African Treasury failed to acknowledge that the crisis had arisen because of the looting of the economy by the royal family.
The youth league said the majority of the people in Swaziland lived in absolute poverty “whilst King Mswati’s kleptocracy is enriching itself and living lavish lifestyles at the expense of poor people”.
It went on to say that conditions for the loan should include an immediate unbanning of political parties and the release of political prisoners, a commitment to free and fair elections and a mechanism to ensure that none of the money went to the king’s coffers.
Source: http://www.iol.co.za/parties-criticise-mswati-grant-1.1111499
Andy Flower Alastair Cook Horse racing England cricket team Household bills Social networking
No comments:
Post a Comment