Cabinet has officially approved a request from ANC officials, for South Africa to pay subscription fees to a Chinese Bank. The agreement will cost the taxpayer R86 million in total, or $5 million. Needless to say, the move is not without its critics.
Taxpayers to fork out $5 million to join Chinese bank
The venture will allegedly allow South Africa to borrow ‘much more money’. But the national debt toll is above the R5 trillion mark. Detractors are worried that expanded government borrowing could be the final nail in our economic coffin.
The ANC see this as an opportunity to ease its fiscal constraints. However, comparisons are already being drawn between this steep investment, and the controversial R50 million ‘donation’ to Cuba during the COVID-19 pandemic.
DA question ‘unacceptable’ ANC deal
Dion George is arguably the loudest voice in opposition. The DA’s Shadow Minister of Finance insists that the money would be much better used for domestic issues. George and his colleagues have vowed to oppose formal ratification, calling the deal ‘unacceptable’.
“The Standing Committee on Finance has approved a request from Cabinet to pay subscription fees to join the Asian Infrastructure and Investment Bank (AIIB). Similar to the R50 million ‘donation’ to Cuba, this significant sum of money would be far better spent fighting poverty in South Africa.”
“If Parliament ratifies joining the Bank, South African taxpayers would need to fork out a minimum fee of $5 million, including $1 million to be paid up front. The ANC’s push to join yet another foreign bank, while also seeking to bankroll an expanded Post Bank, carries no benefit.”
“As the ANC government runs out of money, they will become increasingly desperate to borrow from whatever source they can, to the detriment of South Africa’s economic growth. This is unacceptable, and the DA will resist the formal ratification.” | Dion George