Monday, 12 September 2011

‘LOAN WILL NEVER BE PAID BACK’

Mail and Guardian, South Africa

9 September 2011

SOURCE

Face it: R2.4bn 'loan' to Swaziland is a gift, says Cosatu

The Congress of South African Trade Unions says it is impossible that the R2.4-billion bail-out lent to Swaziland's Central Bank by the South Reserve African Bank could ever be repaid, and it should be called a "gift".

Cosatu's deputy president Zingwisi Losi, who was detained and then deported by Swazi police after she addressed a union protest in Siteki on Wednesday (7 September 2011), addressed a small media gathering in Newtown, Johannesburg on Friday.

Losi said that the Swazi government owed R70-billion to the International Monetary Fund (IMF) and the World Bank, and would not find the money to repay the R2.4-billion loan.

She said that Swaziland's King Mswati III already
tried to lay claim to the cash meant for the running of the country.

The Mail & Guardian also reported on Friday that part of the loan was to be paid to a company
with links to the Swazi royal family.

The South African government has stood security for the loan and Finance Minister Pravin Gordhan has assured critics that governance and financial reforms were part of the deal.

To read the full report from the Mail and Guardian, click here.

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