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DA objects to proposed spending of IMF loan

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The DA has issued a statement objecting to the government’s proposed spending of the R70 billion IMF loan, which is partially set to be allocated to the ailing SAA and salary payments.

The Democratic Alliance (DA) released a statement on Friday, 23 October 2020, expressing its strong opposition to the proposed spending of the R70 billion loan from the International Monetary Fund (IMF). This follows the party’s letter to the IMF objecting to Minister of Finance, Tito Mboweni’s intention to allocate yet another R10 billion to the embattled parastatal, South African Airways (SAA).

The DA has now come out against Mboweni proposing to allocate a portion of the loan to pay the salaries of public servants, despite his earlier position on the matter. According to the DA, “Mboweni appears to have abandoned the position he took in his February budget presentation to rationalise the unsustainable public wage bill, and is now willing to use debt to finance salary payments to government employees.”

Read the full statement below.

Sabelo Makhubo
[email protected]

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