South Africa’s cry to be rescued

  • by African Times
  • 28 Days ago
  • 0

Our country will be bankrupt in our lifetime, writes Makhosi Khoza

THOSE who sank our country (to economic ruin) want us to believe, they can rescue it. Really?

South Africa has limited options to pull out of this frightening economic situation. Corruption thrives on populism. Populism is nothing but a rotten rat wrapped in silk. Beware of populists. Corruption has finally claimed the entire South African society as its victims.

South Africa is racing and outpacing economists and political commentators as it is at the edge of a cliff.

  1. Unemployment stands at 27.7% and at 38% if we apply the expanded definition of those who have stopped seeking employment. By the way 58% of these are our youth.
  2. Despite spending over 10% of our budget on education, RSA faces education quality crisis.
  3. Our debt to GDP is now standing at 60% worse than 49% of apartheid inherited debt. As if that was not all the Russians are pushing for the nuclear deal at all cost. In the meantime President Zuma has just auditioned Faith Muthambi who excels in executing anything with destruction in it. However, Russian want someone that can wow the Moscow audience. So Putin wants Mahlobo, who allowed 50 schools to be destroyed in Vuwani. Help us Lord!
  4. The over 18 million of social grants recipients risk not getting their life line support if South Africa defaults on its international financial obligations and if nothing is done. The unlawful deductions continue. Old pensioners are not being paid regularly. Corruption is rampant. Public spending is under serious threat.
  5. The government continues to bail out SOE’s. Do we really need them on our books? These SOEs are nothing but cash cows for corrupt officials and politicians. Isn’t about time we seriously consider privatization of some SOEs? Why are we still keeping SAA in government books? National Treasury transferred R13. 7 billion to SAA.

That is what happens when you have a captured finance minister. Revenue will fall short by R50.8billion. Kahleni bo!

What should we do with the ownership of ESKOM, SA Post Office? Truth be told, let us be practical, if SA Post Office or SAA was owned by Mr. Mokoena and associates would they allow it to be deliberately bankrupted through corruption?

The bottom line matters in the private sector.

Would they hire incompetent board members who are often clueless about how the economy works? I don’t think so. Why wait for March 2018 to dispose some of these national fiscal draining SOEs? I equally feel sorry for Telkom that must sell its stake in order to bring SAA back to life in order to be rescued again.

  1. Why do we have so many Ministers and their deputies? If we are serious about fiscal consolidation, let’s start there. South Africa will do well with 15 competent cabinet ministers. Political power without moral principles is economic disaster. Ask South Africans.

Tough Economic Times Require Pragmatic and Courageous Leadership. It is immaterial who emerges as a leader at the ANC December 2017 elective conference, because we are where we are not just because of President Zuma alone but the entire ANC leadership.

To reach this level of economic deterioration takes years. All the contenders for ANC President have been in the ANC NEC. They allowed this to happen or worse, they were part of it. 2019 is so far under these circumstances. Will we still have a country by then?

South Africans sisengxakini.

Dr Makhosi Khoza is a former ANC MP

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