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Shivambu wants finance minister to name domestic lenders who loaned SA R1.8-trillion

24 April 2022 - 12:00
EFF deputy president Floyd Shivambu says the current administration is a 'directionless government'. File photo.
EFF deputy president Floyd Shivambu says the current administration is a 'directionless government'. File photo.
Image: MASI LOSI

EFF deputy leader Floyd Shivambu has expressed dismay over finance minister Enoch Godongwana not naming domestic lenders from whom SA has loaned R1.8-trillion.

Godongwana revealed SA’s gross loan debt has increased from R2.5-trillion in 2017/18 to R4.3-trillion in 2021/22.

He said government borrowed an additional R1.8-trillion from both domestic and international investors.

Godongwana made the revelation in reply to a written parliamentary question from Shivambu following the EFF’s request for details on government’s loans from domestic and international financial institutions. 

Godongwana said government’s gross borrowing requirement was being financed through the issuance of domestic short- and long-term loans, foreign currency long-term loans  and cash balances.

“Domestic short- (Treasury bills) and long-term loans (bonds) are issued to market participants in the primary market (primary dealers and other financial institutions) through weekly auctions.

“The market participants buy the bonds on behalf of their clients, which include pension funds, foreign investors, insurers, monetary institutions, other financial institutions and individuals, to name a few,” he said.

Taking to social media, Shivambu criticised Godongwana for not disclosing the names of the domestic lenders, saying it was a parliamentary obligation to do so.

“The money was borrowed from rapacious lenders, not investors. Mr Godongwana hasn’t disclosed the names of the domestic lenders despite a parliamentary obligation to do so.

“What’s tragic is that the entire R1.8-trillion didn’t lead to economic growth,” said Shivambu, called the current administration a “directionless government”. 

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