The International Monetary Fund’s executive board approval of the R70 billion loan to support South Africa’s response to the impacts of Covid-19 on the economy is reason for concern.
The increased amount of debt, even at a low interest, is worrisome considering South Africa could not even service some of the country’s state-owned enterprise debts.
The IMF loan to support job creation, protection and businesses that are negatively impacted by the Covid-19 pandemic, comes at a time when South Africans are worried about the misappropriation of funds set aside for these very reasons.
While UASA understands that South Africans need assistance in these challenging times, the very real possibility that some of this money might not reach its intended recipients or services, is a thorny issue that needs to be addressed in advance.
We have already seen massive looting of the funds set aside for Covid-19 relief.
UASA would also like to remind government of the fact that the IMF does not just give out money unconditionally. South Africa will need to adhere to all IMF conditions to make use of the funds. However, South Africans have not been informed about the terms and conditions of this loan at all.
As taxpayers we have the right to be informed about this as it is with taxpayer’s money that the loan will be settled over the coming years.
UASA urges Pres. Cyril Ramaphosa to make known the terms and conditions of the IMF loan and to ensure his fellow politicians and people who deal with public funds to act in line with the intended purpose of the loan.
Every cent must be accounted for.
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