EFF statement on the MTBPS of 2022

26 October 2022

The Economic Freedom Fighters (EFF) is not shocked by the underwhelming and misdirected medium-term budget policy statement presented by the finance minister today. The medium-term budget policy statement presented in the National Assembly where the finance minister tabled the adjustments to the division of revenue and appropriation as well as tax administration laws demonstrates clearly that the people entrusted with dealing with the economic crisis we face as a country do not have practical plans that will grow the economy, create jobs and uplift millions of our people from poverty.

It has been evident to anyone paying attention in the past 10 years that the National Treasury has been failing to manage South Africa's debt. Today, govemment debt is projected to be more than R4.7 trillion, compared to R627 billion in 2008/09. We pay more than R355.2 billion a year to service the debt, and this has become the biggest expenditure item. What is even more disturbing is that South Africa's democracy was founded on unsustainable debt that benefited racist white people, and the ANC government misused the debt incurred in the post-apartheid dispensation.

Consequently, lots of public money was wasted on high budget deficits, and our people do not have anything to show for it. What is even more disgusting is that the only proposed solution to decrease our debt burden and debt service costs is to target the poor and working class while we are told that no budget reductions are being implemented.

The EFF has consistently warned that the ANC has no capacity to table a practical, believable and sound economic plan to lead South Africa into a growth economic trajectory in the medium to long term. While the floods in Kwazulu-Natal did serious damage to the movement of goods in the ports, the 2.1 per cent projected real GDP growth was always a pipe dream.

The so-called clear and stable macroeconomic framework is merely a fool's errand while the aggressive pursuit of privatisation of strategic SOEs disguised as structural reforms is destroying state capacity. The greater competition and efficiency choir at the National Treasury, sponsored by the World Bank and International Monetary Fund, that is rushing to privatise energy, ports and essential services such as water and sanitation, is driven by greed and a misguided belief in the corrupt private sector.

We know that the so-called investment drives and pledges are propaganda to make Cyril Ramaphosa appear as if he is doing something when there is nothing he is doing.

The privatisation of the generation of electricity in the name of creating a competitive energy market is driven by greed and looting of Eskom assets. Any practical and implementable solutions to stabilise the grid to allow the generation of reliable electricity for the economy and affordable electricity for the poor and working class will not come from selling electricity for profit.

It is even more shocking that the Eskom Board can adopt a resolution to suspend power station operation managers yet the incompetent and arrogant Eskom CEO, Andre du Ruyter, remains in the office. The fact that we have entrusted the food packer to deal with a R400 billion debt threatens to collapse the whole fiscus.

The solution to Eskom's problems in the immediate is to review all coal contracts and set aside contracts that are milking Eskom; suspend all contracts with independent power producers; and get competent management to focus on the core mandate of Eskom, which is to produce electricity. We reject the billions of loans that are sourced in the name of just energy transition because we know that there is no genuine pursuit of climate change.

The EFF is not shocked that South Africa has failed to switch from analogue switch off to complete digital migration. Over and above the fact that the switch is happening without any industrialisation benefits, the ANC government does not have the capacity to do anything they are supposed to because of pure incompetence.

Government infrastructure continues to deteriorate without any believable intervention in the immediate. The allocation of R66.7 billion for new and rehabilitation of existing infrastructure is going to waste because the government does not have the internal capacity to maintain infrastructure, let alone a plan. Until the government abolishes tenders for the maintenance of government infrastructure and builds internal state capacity, we will never see improvement.

South Africa fiscal policy continues with its austerity trajectory in the name of a prudent approach. If anything, we know that the target of austerity is teachers, nurses, police, and all other working-class families. The pensionable salary increases of 3 per cent for public servants while politicians enjoy free transport in luxury, housing, water and electricity in state houses is shameful.

The EFF rejects the allocation of R2 billion for rebuilding the colonial figure we use as Parliament. The EFF is finalising the Relocation of the Seat of Parliament Bill that will allow the relocation of Parliament to the City of Tshwane, where Parliament will be more accessible to the majority of South Africans, making it truly a people's parliament.

The continued allocation of crumbs to local government when all municipalities have collapsed is shocking. The allocation of 10.1 per cent of the revenue raised nationally to local government is a confirmation that the ANC wants to collapse municipalities to make way for privatisation of most essential services, as service delivery is the coalface of service delivery.

South Africa currently faces grey-listing by the financial action task force because we have a delinquent president who hides United State dollars in his mattresses and bed. The EFF has consistently raised the problem of illicit financial flows with practical and implementable solutions, including legislative amendment. We know that the ANC government is not interested in addressing the issue of illicit financial flows because they must arrest their president first.

The EFF will make practical and implementable contributions to the tabled bills, in particular the adjustments appropriation bill to ensure that there is adequate allocation for public servants' salary adjustments, education, and health and to ensure that there are no budget cuts in essential services.

Issued by Sinawo Thambo, National Spokesperson, EFF, 26 October 2022