Nzimande lashes downgrade celebrants

SACP general secretary Blade Nzimande File picture: Thobile Mathonsi

SACP general secretary Blade Nzimande File picture: Thobile Mathonsi

Published Apr 10, 2017

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SACP general secretary Blade Nzimande has lashed out at cabinet colleagues celebrating the country’s economic downgrade to junk status by rating agencies.

Nzimande, while addressing the Cosatu shop stewards workshop at the Coastlands Hotel in Durban yesterday, said those celebrating lacked understanding of how the country’s economy worked, and the negative impact the downgrade would have on workers.

Two rating agencies, Standard and Poor’s Global and Fitch, have downgraded the economy to junk status.

“There are those going around saying that it’s a good thing the economy has been downgraded. That when it’s rebuilt, it will be rebuilt with local investors: what is that?” asked Nzimande.

Minister of Water and Sanitation Nomvula Mokonyane was reported to have said the downgrade was a positive step, and that when Western investors returned they would do so on “our terms”.

Dudu Myeni, board chairperson of SAA and a close friend of President Jacob Zuma, reportedly said, “let the rand fall and rise and emerge with the masses”.

Nzimande said: “The Public Investment Corporation (PIC), which is responsible for investing the pension money for workers, makes up 12.5% of the JSE.

“That is a big part of worker’s money that will be going down the drain. They say if the economy falls, it’s the rich that will suffer. The rich will simply retrench workers. It will be the workers who will suffer.

“They forget that pension is the only asset the workers have and should be protected,” he said.

Nzimande said the majority of the country’s economy was driven by the workers’ savings. He said he was not impressed with lack of action from Cosatu in light of the challenges

facing the country.

“Cosatu needs to get closer to this situation, this is workers’ money. They should look closely at the State capture allegations. I would go as far as to call for a general strike.”

He criticised the recent cabinet reshuffle, saying it was tantamount to abuse of power.

“We removed Thabo Mbeki because he was using his prerogative to appoint ministers to marginalise his opponents. We are seeing a repeat of that.

“The prerogative does not just belong to the president, or premiers or mayors. It is the prerogative of the whole alliance,” said Nzimande.

Cosatu general secretary Bheki Ntshalintshali said they were disappointed with the lack of consultation.

ANC provincial chairperson Sihle Zikalala, who arrived late to wild cheers and left soon after delivering his speech, emphasised the need for the alliance partner to solve their problems in a disciplined manner.

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