SA's downgrade to junk status has split the ANC‚ says MK veterans' council

The Umkhonto weSizwe Military Veterans Council steering committee says the ANC has been divided even further following the recent downgrades of South Africa’s sovereign credit rating to junk status and subsequent downgrading of the country’s banks.

The downgrades came in the wake of a cabinet reshuffle that saw President Jacob Zuma sack widely respected former finance minister Pravin Gordhan and his deputy‚ Mcebisi Jonas.

"We think the reason why we are now proposing again an urgent reconsideration of the ANC is because of the present political situation where the crisis in the African National Congress has been divided even more... the ANC is divided right at the top.

• Gigaba explains ‘radical economic transformation’ to investorsA special Cabinet meeting is due to take place on Wednesday to address the recent credit ratings downgrades by S&P and Fitch.

"There is a motion of no confidence that has been proposed and there are branches calling for the president to step down. There have been unprecedented activities following the downgrades by the rating agencies‚" said deputy minister of justice and correctional services Thabang Makwetla.

He was speaking at the historic Liliesleaf farm in Rivonia‚ Johannesburg‚ on Thursday to communicate the committee’s views on the crisis engulfing the ANC.

• Fitch follows S&P in downgrading South Africa banks after sovereign moveRatings agency Fitch downgraded five South African banks on Tuesday in a widely expected move, days after it cut the country's credit rating to sub-investment grade.

Makwetla's‚ remarks come as Zuma unexpectedly recalled Gordhan from an international investor roadshow ahead of his sacking‚ sparking calls for the president to resign or be removed from the opposition‚ civil society groups‚ and key members of the ANC.

There have already been two marches across the country calling for Zuma to step down. However‚ those calls have hit a brick wall as the president has seemed unfazed by the calls when he appeared at various recent public events.

Makwetla‚ who is also Member of Parliament‚ said he would not be voting with opposition parties in the motion of no confidence against Zuma as they would not be told by opposition parties what to do.

• Downgrades could cause recession — but we don’t really know, says ANCWhile the ANC acknowledges that it does not yet know the full economic effect of SA’s credit ratings downgrades to junk status, the party has conceded that a recession is a possibility.

"Only ANC members can correct what is wrong within the ANC. The initiative to correct what is wrong in the ANC should always lie with ANC members themselves and I'm not convinced that there is another approach that we can take on the matter‚" added Makwetla.

Political parties were due to debate a motion of no confidence in Zuma on Tuesday‚ April 18‚ but the vote has since been moved to May.

• Fitch downgrade a vote of no confidence in Gigaba‚ says DAFitch’s downgrade of South Africa is a vote of no confidence in Finance Minister Malusi Gigaba’s ability to hold the fiscal line and stabilise debt‚ the Democratic Alliance says.

The MK veteran’s council steering committee has previously called for the ANC’s national executive committee to be disbanded and for an interim leadership to be appointed‚ using the party’s "Eye of the Needle" policy framework as a guideline.

The "Eye of the Needle" document‚ which was drafted in 2001‚ outlines the attributes that will help to identify a true leader in the party.