ANC's Mchunu says SA is drowning in debt

2015-10-03 19:36
(File: ANC)

(File: ANC)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Durban – KwaZulu-Natal ANC chairperson Senzo Mchunu on Saturday said South Africans were getting deeper and deeper into debt.

Speaking at the two day Provincial General Council at Coastlands Hotel in South Beach, Mchunu said going into next week’s National General Council, the party would focus on policies affecting both the employed and the unemployed.

“Our policy making, implementation and review by nature should always be founded on socio-economic conditions that we see prevailing out there and affecting our people in different ways, this includes the employed and the unemployed,” he said.

He said while the government focused more on the country’s high unemployment rate, there were challenges affecting the employed.

“In December 2014, a report by the Credit Consumer Monitor stated that South Africans are over-burdened by debt. We are increasingly drowning in debt including those that are employed.

“At the time records showed that out of 22.84 million credit active consumers, 10 million have an impaired credit record.”

Garnishee orders

This means that 10 million people have received judgements and bad credit records, said Mchunu.

“The Public Service Commission in 2008 released information that public servants such policeman, nurses and teachers were the ones who were drowning in debt.

“Money collected from public servants was about R1.1bn in 2006 and 2007. If public servants were owing this much alone and they were employed, then you realise that there is a problem.”

Mchunu said government officials on salary levels 6, 7 and 8, were the ones who were served with garnishee orders the most.

“In the 2014-2015 financial year, money collected from employed people by government in KZN alone was R188m.

“The issue that affects policy here is garnishee orders. We need to look at all the laws and regulations pertaining to that policy.”


Mchunu said the government needed to help people in debt.

“There are many areas we need to look at like how the courts apply the law when it comes to garnishee orders.

“Some people get garnishee orders even when they haven’t appeared in court. Sometimes money is taken without your permission, sometimes you are overcharged, sometimes there is duplication and other times once you have paid off the debt, they continue to charge you.

“There are many things that lead to employed people getting deeper and deeper into debt even when they are employed, especially public servants.

“We need to look at whether we have adequate policy, laws and regulations that seek to cover these people, especially public servants, if we are to protect them against what may seem to be unfair policy on garnishing orders.

“We need to look at every section of society that is affected by policy especially those that we take for granted that they are well-off,” said Mchunu.

Read more on:    anc  |  durban  |  economy  |  politics

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.

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.