Johannesburg - Cosatu says it's worried about S&P
Global's decision to downgrade the country to junk status as this would affect
crucial spending across the economy.
The federation said on Tuesday following its special
central executive committee meeting that it was worried that the
government owed more than R2.2 trillion to lenders which was more than 50, 7
percent of the national income.
It was also worried that the government was also paying
R160 billion in interest, which was closer to the amount it pays out in social
grants.
Cosatu's Bheki
Ntshalintshali expressed disapproval in the reason given by S&P to downgrade
the country.
S&P Global said its decision was prompted by the
President Jacob Zuma's decision to reshuffle his cabinet last week, which
included firing Finance Minister Pravin Gordhan and his deputy Mcebisi
Jonas.
It cited political and policy uncertainty as a reason for
the decision to downgrade the country's sovereignty to junk status.
Another rating agency Moody's has also put the country’s
economy under review for a downgrade, with Fitch expected to make its decision
later this week.
Read also: Moody's places SA on review
"We express our disapproval of the credit rating
agency S&P's decision to downgrade the country and we view their reasons
about political uncertainty as interference in our domestic political
affairs," said Ntshalintshali.
"We also hold responsible and culpable the President
Jacob Zuma because it is his inattentive and negligent leadership and
disruptive actions that have emboldened these agencies to interfere in this
country's political affairs," Ntshalintshali said.
Cosatu President Sdumo Dlamini lashed out at rating
agencies and accused them of meddling in the country's affairs.
Although Cosatu would not comment on whether it was right
for Zuma to fire Gordhan, the federation has called for Zuma to step
down.
The ANC's alliance partner said it no longer had
confidence in his leadership, joining the SACP's in its demands for the
same.
Dlamini said Zuma has contacted him and asked to meet
with Cosatu's leadership.
@ZintleMahlati.
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