Fin24

Cosatu condemns SA's IMF donation

2012-06-19 16:57

Johannesburg - Cosatu condemned the news on Tuesday that Treasury has donated $2bn (about R16.58bn) to an International Monetary Fund (IMF) firewall meant to prevent future financial crises.

"South Africa is one of the most distressed economies in the world, with massive levels of unemployment, poverty and inequality... and should therefore be a beneficiary rather than a contributor to such a fund," Congress of SA Trade Unions spokesperson Patrick Craven said in a statement.

"It seems to be an attempt to show international institutions and big powers that South Africa is one of the 'good boys'."

Earlier, the Treasury announced that President Jacob Zuma had committed some of South Africa's reserves to the IMF at the G20 summit, a meeting of the world's greatest economies, in Los Cabos, Mexico.

The funds would be considered part of South Africa's foreign reserves, Treasury spokesperson Jabulani Sikhakhane said.

Participating countries with no way out of a financial crisis would access the so-called firewall fund through a temporary loan, with conditions, and not purchase agreements to the IMF's general resources account.

Sikhakhane said the funds were committed based on the premise that South Africa's voting power and quota shares in the IMF be reformed, as agreed to in 2010.

Craven said that since 1993 there had been a false assumption that South Africa was a developed country, and fiscal and monetary policy had been based on this assumption ever since.

"The result has been that the already high levels of unemployment, poverty and inequality have become even worse, with massive job losses, especially in the key manufacturing sectors," he said.

Cosatu wanted to know which ANC conference resolutions gave the government a mandate for such a contribution to the IMF.

"Were the alliance partners, or even the ANC NEC (national executive committee) consulted over the decision?" asked Craven.

Cosatu wanted ANC delegates at next week's policy conference to endorse the policy in the ANC discussion paper on international relations, which proposed that the World Bank and IMF be reformed.

"The decision must be reversed and the $2bn used to alleviate the plight of the poorest South Africans and to invest in the restructuring of our economy," said Craven.

Comments
  • kobus.hattingh.5 - 2012-06-19 17:10

    They could have financed the toll roads in Gauteng with that!!!

      shakes.tshabala - 2012-06-19 18:53

      The SPEAR is now applicable. After we saw the SPEAR in SA, is it now time to show the international community that he has BIG BALLS. Lol. We are starving here, unemployment rate is high, Crime is the order of the day etc. What will a financial injection of R16.5bn do to our straggling economy. It seems these politicians don't live in SA. They do not feel and see the wrong. What a shame to see your own people living and starving in difficulties.

      freddy.vanwijk - 2012-06-20 05:08

      I fully agree with the financing of the toll roads. Even now there are roadworks going on between the Snake Valley turn-off and all the way to Midrand and beyond with finances coming from somewhere except e-tolling. Not even coming from the $2 billion thats going to the IMF. The $2 billion could also create jobs what South Africa needs right now instead of giving a handout to the IMF.

      wesley.nel.5 - 2012-06-20 06:38

      Don't worry, there will be 10 court cases and as much appeals before that money flow.

  • Glyn - 2012-06-19 17:20

    Go home Craven man!

      vic.jablowski - 2012-06-19 19:20

      Why, is he speaking the truth, and you are one of his hand-outs

      glenn.chi.9 - 2012-06-20 09:19

      "COSATU wanted to know which ANC conference resolutions gave government a mandate..." This is the problem with this ANC Alliance and their belief that they own the country - this decision was made by GOVERNMENT on behalf of the country, not the ANC and its alliance partners. There is a separation between PARTY and STATE, Mr Craven! PARLIAMENT gives GOVERNMENT mandates, not SACP and COSATU. If you want to be involved in these decisions, run for election in our democratic process, you idiot!

  • Bless Boswell - 2012-06-19 17:35

    A thought ... Has anyone ever wondered how much joblessness has been caused by our government through not payment for services and supplies? Take for example the medical bills that were unpaid since 2005? How many little guys survived that? They were doubtless the employers of many black people with families, commitments and lives to live. The government should make amends to all those who suffered as a result of their ineptitude, and they should dismiss (without all the benefits) the people that were responsible for it. It's a disgusting disgrace

  • imtiaz.osman.5 - 2012-06-19 17:37

    If we have that kind fund in reserve why do we have to borrow money from the IMF and world bank and pay interest. We should have used that money to built infrastructure for eskom instead of increasing the price of electricity which have caused prices basic goods and services to rise and job losses.

      mxeki.maduvula - 2012-06-19 17:55

      100% korekt! But will we ever find da administration that will champion da interests of da citizens in SA?

      mxeki.maduvula - 2012-06-19 17:55

      100% korekt! But will we ever find da administration that will champion da interests of da citizens in SA?

      wesley.nel.5 - 2012-06-20 06:41

      They just want to show off. It is like a bankrupt municipality that spends millions on a funeral, just to show off.

  • mxeki.maduvula - 2012-06-19 17:37

    Thumbs up cosatu! But i dont believe da demons can fight da devil, they belong 2geda. Cosatu

      Keith - 2012-06-19 18:14

      Who let the dogs out again ??

  • AMOTOSO - 2012-06-19 17:40

    it means those on top a enjoing feeding on the blood of the poor, next its our rights they a going to give to the new world order, politics game of the wicked, they rather giv u hand outs than to inpower u shame on them

      Keith - 2012-06-19 18:15

      Amotoso did you not see todays pic of Zuma at the G 20 where they say a family foto?? The VAMPIRE WESTERN FAMILY. So has Zuma sold out brother leader Gaddafi

  • AMOTOSO - 2012-06-19 17:40

    it means those on top a enjoing feeding on the blood of the poor, next its our rights they a going to give to the new world order, politics game of the wicked, they rather giv u hand outs than to inpower u shame on them

  • glencoe.maseko - 2012-06-19 17:42

    I say Let's stop complaining...lets Stand together Black n White and STOP Paying TaX...Lets organise A march

      mxeki.maduvula - 2012-06-19 17:46

      Im ur 1st 2nder man. These fatcats do as they wish with da money that is not theirs.

      mxeki.maduvula - 2012-06-19 17:48

      Im ur 1st 2nder man. These fatcats do as they wish with da money that is not theirs.

      Tonya Neto - 2012-06-19 18:35

      Well said we need to stand together for the greater of this country and people.

  • ndumiso.mncwango - 2012-06-19 17:43

    When they have to pay workers they say they must take money from the poor, but somehow they manage to give money away.

  • Bear - 2012-06-19 17:47

    its 2 billion rand... pocket change when compared to the amount corrupted out of the system yearly... this is a once off donation that will help us by increasing the security of international trade.

      thulani.zondi.7 - 2012-06-19 18:51

      It is 2 billion us dollar.

  • trevor.toye.7 - 2012-06-19 17:48

    I agree, how many RPD houses could be built with R16,5bn. The priorities of this government are screwed, and they can just be lucky the electorate is uneducated enough to still vote them in. They are exploiting the poor

  • nkosingiphile.cofu - 2012-06-19 17:50

    This 16 billion contribution to the IMF is an insult to the government employees who have just been told to accept 6.5 % salary increase because there is not enough money. This leaves us wondering whether is international relation more importent than south africans? If there is one thing as workers we need to protest about is this contribution. It has to be blocked. We cant afford to bail out people whose unemployment rate is lower than ours. If you call what is happening in Europe a crisis then what do you call what is happening here? I gues a catastrophe.

      toofaan.monsoon - 2012-06-19 18:39

      Without in any way denigrating your comment on the 6.5 percent, may I please add that you are relatively fortunate. In the private sector figures are often much lower - amazingly quite often government workers get 6.5 irrespective of whether they perform or not. You're right though - by first world standards, we are in a catastrophe.

  • clive.kihn - 2012-06-19 17:58

    Sounds a lot, but didn't the Auditor General report that something like R30bn has been wasted by govt over the past two years? Peanuts then. And of course Cosatu won't have a word to say should we need a few bucks from the IMF one day.

  • patrick.saunders123 - 2012-06-19 18:17

    and we have cosatu to thank for the high unemployment.

  • dave.ducker.3 - 2012-06-19 18:27

    I agree with Cosatu on this one, surely the money could be better spent creating jobs, financing major projects, or pumping into health care (oh but wait we have the NHS coming) or pumping into education, for that matter setting up a task force to investigate corruption !!! To be honest I don't think we could afford to do that !!! but then again who am I just the tax payer paying my part for this sordid squandering!

  • Sibusiso - 2012-06-19 18:40

    The world needs this money, if the EU economy crashes we crash, so we have to help. Cosatu stick to striking because that's all you know and let economists handle economics. One day we will need the IMF

  • Sibusiso - 2012-06-19 18:41

    The world needs this money, if the EU economy crashes we crash, so we have to help. Cosatu stick to striking because that's all you know and let economists handle economics. One day we will need the IMF

      Rational100 - 2012-06-19 19:19

      @sibusiso....so u sayin anyone of the other 100+ countries of the world who have not contributed to the IMF will not need it in future? Yo claim to economics is probably misplaced if u think 3rd world economies should finance 1st world economies and their self-inflicted financial crisis... By the way, ask yoself why IMF has always been Headed by a European before u spew bile on the matter.

      mathoki - 2012-06-20 08:02

      Sbu. We should borrow them the money, not give them, we might need it soon, after the ancyl has destroyed SA farms

  • boer.afrikaner - 2012-06-19 18:59

    Hell lyk my die ANC RAAK DOMMER BY DIE DAG. Is daar nie genoeg armoede in Suid-Afrika wat die geld nodig het nie.??

  • nowethu.lufundo - 2012-06-19 19:05

    But EC schools and Limpopo have no resources.

  • Glenda - 2012-06-19 19:36

    How disgusting that the spear gives money away! Today I was at the Johannesburg Hospital...lifts broken, computors down, windows broken, run down building and facilities. What about that!!!!!

      Nukki - 2012-06-19 20:31

      so whats new about that, its in all hospitals in SA

  • Rational100 - 2012-06-19 19:57

    The irony in all this is that the IMF could just channel this loot to a country that will subsidise a farmer in Europe who will compete against a farmer in SA for the market. When are going to learn that the failure of the WTO is linked to the EU arrogance on protectionism in their backyard whilst preaching free market economics to us ?????

  • Nuran Mohanlal - 2012-06-19 21:49

    Last line in the news........the money will be returned if sa needs it later.

  • phelejoseph.lenonyane - 2012-06-20 00:53

    I think our tribal leader,JZ and his right hand man,BN have something to do with this donation. R16 billions is lot of money that should have been elsewhere, we have more than 25% unemployment for heaven sake!! If JZ is really looking for a second term and he is busy misusing the state funds, he needs to think again!

  • Andre Van Zyl - 2012-06-20 05:26

    Any other "alliance" would have disintegrated long ago if it's participants had such differing views. Come on Patric, read African history and dont be scared. There is life beyond a liberation movement and liberation movements in Africa generally only last about 20 years before greed and infighting causes them to self destruct. You would make so much more sense if you made the same comments but as a representative of the Labour Party.

  • glenn.chi.9 - 2012-06-20 08:37

    "COSATU wanted to know which ANC conference resolutions gave government a mandate..." This is the problem with this ANC Alliance and their individual beliefs that they own the country - this decision was made by GOVERNMENT, not the ANC and its alliance partners. There is a separation between PARTY and STATE! PARLIAMENT gives GOVERNMENT mandates, not SACP and COSATU. If you want to be involved in these decisions, run for election in our democratic process, you idoit!

  • john.kinghorn.334 - 2012-06-20 12:01

    I wonder how many jobs have been lost in South Africa because of cosatu? Job losses in the manufacturing sector is caused by union demands.

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