ANC blamed for Moody's 'severe' downgrade of Mangaung
Cape Town - The Democratic Alliance in Mangaung on Wednesday laid the blame for Moody's downgrading of the metropolitan municipality to B3 at the door of the African National Congress.
Hardie Vivier, the DA's caucus leader in Mangaung, which includes Bloemfontein, Thaba Nchu, Botshabelo, DeWetsdorp, Wepener and Van Stadensrus, said the step reflected the "reckless governance failures of the ANC in the metro".
"This downgrade is a sad testimony to the culture of maladministration and poor governance that has been the hallmark of the tenure of ANC mayor Olly Mlamleli. It is extremely unusual for Moody's to issue such a severe downgrade, except in circumstances of great concern for the state of governance, which clearly the ANC has delivered," Vivier said.
He said it had become normal for residents to go without water for several days every month and road repairs and refuse removal had become less and less frequent in the metro.
"This credit rating downgrade will undoubtedly turn away what investment the metro may have attracted, constricting the local economy and jobs."
The debt rating downgrade three notches deeper into sub-investment territory to B3 deems investment in the metro "speculative" because of the high risk of a default. Moody's cited Mangaung's rapidly declining liquidity position as the reason for its decision.
African News Agency (ANA)