By: Natasha Archary
The Democratic Alliance (DA) has called the African National Congress’ (ANC) R86 million contribution to the Chinese Bank an expense that will cost hungry households.
In a statement released on Tuesday, 22 November, the DA says no one benefits from the ANC joining a foreign bank. Instead, hard-pressed South African households who are battling to put food on the table will feel it.
“If Parliament ratifies joining the Chinese Bank, South African taxpayers would need to fork out a minimum fee of $5 million, or roughly R86 million, which includes $1 million which is to be paid immediately.
Another $4 million would be callable by the Asian Infrastructure and Investment Bank (AIIB) at any time. This equates to roughly R85 million that needs to be paid to the bank in the short run.”
The DA calls the ANC’s decision to join forces with the Chinese Bank similar to the R50 million donation the government made to Cuba. Money that could have been used to alleviate the plight of vulnerable South African citizens.
But, according to the DA, the ruling party chooses to waste money on bailing out failed state-owned enterprises that, due to years of corruption, cadre deployment, and mismanagement, find themselves hopelessly bankrupt.
As a founding member of this new bank, South Africa will be able to borrow even more, despite national debt expected to exceed R5.6 trillion within the next 3-years.
The DA intends to resist the formal ratification of the deal and finds the move unacceptable.
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