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Shockingly, Enoch Godongwana, chairperson of the ANC’s committee on economic transformation, has conceded that the ruling party seems limited in its understanding of the implications of South Africa’s sovereign credit rating to junk status.

Godongwana and his wife were named as defendants in a combined summons back in 2013, which declared that inter alia their conduct in managing the affairs of Trilinear Empowerment Trust, amounted to a "gross breach by them of their fiduciary duties as directors".

SA needed to “pull together” to overcome its economic problems, Godongwana stated over the weekend.

The reality is that most South Africans already want to do all it takes to overcome our economic disasters. The question is: Where does the ANC really stand on this? With all the factions rearing their ugly heads in the ANC, on whose behalf is Godongwana speaking?

The ANC seems to have all the answers, until reality strikes.

Pres Jacob Zuma is directly to blame. His irrational and irresponsible actions made a ratings downgrade by international ratings agencies to junk status a certainty. We can now with 100% certainty expect interest rates to go up, poor to no economic growth, greater unemployment, and higher taxes. The workers and the poor will suffer the most.

What is worse, is that the downgrade will result in a repetitive cycle, which means matters will continually worsen into a downward spiral that will be extremely difficult to get out of.

For as long as we hear irresponsible statements like

• the rand may fall, but we will pick it up again,
• as long as we keep talking about radical economic transformation,
• as long as Zuma insists on not explaining anything, urging South Africans to wait and see,
• and that Eskom will roll out its version of nuclear deal in June

investor confidence will wane.

This will doubtless result in:

• the decrease of workers’ expendable income,
• a lower demand for consumer goods,
• more workers being laid off,
• a bigger burden on the state,
• workers pressing for bigger increases, but having to accept lower offers

A possibly never-ending downward cycle in action resulting in recession to the detriment of all, with the poor – whom the ANC claim to be a priority – bearing the brunt of the suffering.

The ANC is quick to criticise ratings agencies, white monopoly capital, etc., but will need to realise that the world works in a certain way, and not necessarily the ANC way.
 
Since the fall of Apartheid, it has been difficult to address transformation and inequalities in our society. A ratings downgrade has the potential to wipe out all the gains made over the years while the so-called radical transformation agenda of Zuma promises to be a perpetuation of the status quo whereby only a few of his connections will benefit. Wherever he falls short, the Guptas will make up for it.

The only way to stop this is that we must keep up and grow the groundswell of resistance against this one man who is destroying our country. We again call on like-minded organisations to join the protest action every day.

We cannot let this one slip. The situation is serious. Let us unite so that our children can have a future in our country!

Issued by UASA