We have lost faith in Zuma - Fedusa after Moody's downgrade

(Picture: Supplied)
(Picture: Supplied)

Cape Town - The Federation of Unions of South Africa (Fedusa) says it has lost faith in President Jacob Zuma following Moody’s downgrading of South Africa’s sovereign credit rating to one notch above junk status on Friday.

Moody’s placed South Africa's credit status on review earlier this year when other ratings agencies Standard & Poor and Fitch both took the step to downgrade South Africa's outlook.

It placed the country at investment grade Baa3 with a negative outlook on Friday.

“How many more times must South African citizens face the wrath and deal with these consecutive blows due to ill-fated decision making?" acting general secretary Riefdah Ajam said on Saturday.

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Fedusa was outraged that the country's economy and its membership at large have faced a double whammy in one week: first the negative contraction of the GDP statistics and now the "second nail in the coffin" due to the downgrade, Ajam continued.

Moody’s Vice President Zuzana Brixiova earlier said the abrupt Cabinet reshuffle in March illustrate a gradual erosion of institutional strength, and the institutional framework has become less transparent, effective and predictable.

“Fedusa has continuously emphasised the critical importance of safeguarding National Treasury from all external shocks, but ill-fated decision making is now leading towards plummeting the country into a state of despair."

Approximately R500bn was wiped from the South African economy after former Finance Minister Pravin Gordhan and his Deputy Mcebisi Jonas were fired by President Jacob Zuma, Ajam claimed.

“What more evidence do we need? Fedusa has lost all faith and credibility in President Zuma and calls on Number 1 to do the honourable thing and save our beloved country. The time has come”.        

The union hoped the recent appointment of Dondo Mogajane as the new Director General at the National Treasury would move towards projecting a renewed outlook for South Africa’s financial markets and the economy overall.

He has had a good, long-standing senior role at the Treasury as well as a senior advisor capacity role at the World Bank.

“Mogajane was a diligent member of Team South Africa and FEDUSA believes his appointment will allow him to contribute towards much needed higher levels of inclusive growth.

"The federation certainly hoped the Mogajane’s appointment would bring a new sense of confidence in South Africa by credit rating agencies and investors,” Ajam added.

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