SA could walk the same road as Greece

2015-08-27 06:00

GREECE, with a population of 10,5 million people, owes the European Central Bank (ECB) $360 billion. Why would a country borrow such exorbitant sums without a strategy to service such debt?

The money borrowed was intended for specific projects, which should have generated income channelled to repaying the debt. This did not happen. Instead, they borrowed more. Maybe it’s time countries’ borrowing were subjected to financial statements, as are businesses applying for credit. Liabilities can be scrutinised to help countries manage debt repayments. This will avoid countries having to implement austerity measures and stringent economic reforms, which have a detrimental effect on citizens.

DA leader Mmusi Maimane says South Africa is following the same trajectory as Greece, with a pervasive culture of corruption. When the politically connected are implicated in crime, the perception is they will be protected from prosecution, as this has happened on many occasions.

Unlike in Greece, tax collection in SA is efficient. However, there have been dismissals and resignations of senior SARS personnel, some to prevent investigations into the tax bills of the connected. If SARS loses its independence, SA will walk the same path as Greece.

SA cannot blatantly ignore the signals that led to Greece becoming almost bankrupt. SA has to concentrate on creating more entrepreneurs to create jobs and expand the economy.

Impediments to entrepreneurship must be eliminated.


Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.