Johannesburg - The Federation of Unions of South Africa (Fedusa) on Saturday added its name to those calling for President Jacob Zuma's resignation.
Fedusa is shocked by ratings agency Moody’s Investors Services' decision to downgrade South Africa’s foreign and local currency debt from Baa2 to Baa3 with a negative outlook, the trade union federation's acting general secretary Riefdah Ajam said.
Moody’s downgrading of South Africa followed similar actions by S&P Global and Fitch earlier this year.
At the time, Moody’s placed South Africa on review for downgrading.
"Moody’s has cited the weakening of South Africa's institutional framework; reduced growth prospects reflecting policy uncertainty and slower progress with structural reforms; and the continued erosion of fiscal strength due to rising public debt and contingent liabilities as the principal triggers of the downgrade to Baa3 from Baa2," Ajam said.
Moody’s said there was evidence of systemic erosion of the independence of key South African institutions such as the judiciary, the SA Reserve Bank, and National Treasury.
“How many more times must South African citizens face the wrath and deal with these consecutive blows due to ill-fated decision making?
Fedusa is outraged that our economy and our membership at large have now been faced [with] a double whammy in one week - first the negative contraction of the GDP statistics and now the second nail in the coffin due to the downgrade," Ajam said.
Moody's had cited the abrupt cabinet reshuffle in March as illustrating a gradual erosion of institutional strength. The institutional framework had become less transparent, effective, and predictable.
Policymakers' commitment to previously articulated reform objectives was less certain, Moody’s said.
“Fedusa has continuously emphasised the critical importance of safeguarding National Treasury from all external shocks, but ill-fated decision making is now leading towards plummeting the country into a state of despair. Approximately R500 billion was wiped from the South African economy after former finance minister Pravin Gordhan and his deputy Mcebisi Jonas were fired in a midnight [cabinet reshuffle] by President Zuma that shook the economy.
“What more evidence do we need? Fedusa has lost all faith... in President Zuma's [credibility] and calls on number one to do the honourable thing and save our beloved country. The time has come,” Ajam said.
Moody's had stated that underlying political dynamics which triggered the cabinet reshuffle at midnight on March 31 posed a threat to short and medium-term growth.
African News Agency