The Democratic Alliance says Malusi Gigaba new Finance Minister must start by rejecting to bailout parastatals in order to re-establish trust with rating agencies.
The party says "rating agencies totally have no trust for Malusi and describe Malusi as a presidential minion who is ready to take any instruction from Zuma no matter how damaging to the economy.
The ratings agency is the latest to downgrade South Africa to junk status, after Standard & Poor’s Global downgraded the country last week.
The DA’s David Maynier says, “To reestablish trust the minister will have to show the rating agencies that he’s serious about avoiding further downgrades in the future by delivering quick means, starting by saying no to bailouts for all the SOEs.”
Maynier says it’s not good enough for the minister to simply concede the ratings downgrade is a setback.
“The minister needs to roll up his sleeves and get into the fight to avoid further ratings downgrade. The minister’s number one priority should be avoid the nightmare scenario massive forced selling on our debt triggers a massive meltdown which will spare nobody, rich or poor.”
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