Baloyi accuses ANC government of financial mismanagement

The leader of Xiluva political party Bongani Baloyi says the Minister of Finance Enoch Godongwana has confirmed the government’s financial mismanagement, and put the blame on the ANC government.

Baloyi said this after Godongwana delivered the 2024 Budget Speech.

Baloyi stated that the ANC-led government has proved its inability to manage state finances. He made reference to the National Treasury. It announced that it would tap into the Gold and Foreign Exchange Contingency Reserve Account (GFECRA). This to the tune of R150-billion over the three-year period.

National Treasury has been forced to tap into the GFECRA to help pay down spiraling government debt.

Minister’s speech says it all

“[This was] confirmation by Finance Minister Enoch Godongwana regarding the ANC government’s inability to effectively manage its finances… The necessity to tap into GFECRA for R150-billion highlights significant concerns. These are concerns about the country’s fiscal management.

“Utilising such reserves should be a measure of last resort. Depleting them could potentially impact the country’s ability to weather future financial crises or fluctuations in global markets.

“The mismanagement of the economy has had severe repercussions on the country’s overall well-being. Whether due to corruption, inefficiency, or inadequate policy implementation,” said Baloyi.

Investor confidence

He added that the mismanagement led to a decrease in investor confidence and reduced economic growth. It will also lead to a rise in unemployment and a strain on public services.

“The continuous failures of Eskom to provide reliable electricity to South Africans and businesses have had detrimental impacts on daily life. Economic activities, and overall development in the country have also suffered as a result.

“The persistent power outages not only disrupt essential services but also hinder productivity, investment, and job creation. Addressing Eskom’s challenges requires urgent and decisive action from the government. This is to improve infrastructure, governance, and operational efficiency in the energy sector,” he said.

He also questioned government’s R2-billion conditional grant over the medium term to fund the roll-out of smart prepaid metres. This when South Africans continue to be in the dark.

Baloyi has jumped ship from the DA and ActionSA to form Xiluva. He also stated that the inefficiencies and challenges faced by Transnet had halted exports and imports. The politician added that the whole mess had a detrimental impact on South Africa’s economy.

Corruption, mismanagement

“The mismanagement, corruption, and operational disruptions with Transnet not only drive up costs for businesses. They also undermine the country’s ability to compete on a global scale and attract investment.

“The minister should have told us how they will deal with systemic issues plaguing Transnet. This is paramount in restoring confidence, improving efficiency. It will ultimately drive economic growth,” said Baloyi.

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