Gi­gaba to al­lay fis­cal fears

The Citizen (KZN) - - NEWS -

Fi­nance Min­is­ter Malusi Gi­gaba, pic­tured, is set to meet sovereign credit rat­ing agen­cies and in­vestors in Wash­ing­ton this week as he tries to quell fears about the coun­try’s po­lit­i­cal and fis­cal un­cer­tainty.

This comes as Gi­gaba has de­manded that the Pub­lic In­vest­ment Cor­po­ra­tion (PIC), the coun­try’s big­gest in­vestor in the econ­omy, re­veal its in­vest­ments and the peo­ple it has funded in what is be­lieved to be a fresh bid to oust the PIC boss Dr Dan Matjila.

Al­le­ga­tions of mis­use of funds, to­talling al­most R1.9 tril­lion, in PIC cof­fers has sent jit­ters through South African mar­kets, with op­po­si­tion po­lit­i­cal par­ties and trade unions voic­ing their con­cerns about and protest­ing against the “hi­jack­ing” of work­ers’ pen­sions.

Gi­gaba and the Na­tional Treasury’s di­rec­tor-gen­eral Dondo Mo­ga­jane will lead a se­nior del­e­ga­tion to rep­re­sent South Africa at the 2017 an­nual meet­ings of the In­ter­na­tional Mon­e­tary Fund (IMF) and World Bank Group that takes place un­til Sun­day.

Treasury said yes­ter­day that Gi­gaba, Mo­ga­jane and Gov­er­nor of the Re­serve Bank Le­setja Kganyago would have meet­ings with the in­vestor com­mu­nity and rat­ing agen­cies.

The agenda in­cludes a statu­tory meet­ing of the IMF and the devel­op­ment com­mit­tee of the World Bank Group, meet­ings on the side­lines with fi­nance min­is­ters and cen­tral bank gover­nors of the G20, G24, Brics and the Com­mon­wealth, and bi­lat­eral meet­ings with min­is­ters of fi­nance from ad­vanced economies, emerg­ing mar­ket and de­vel­op­ing coun­tries.

“It is im­por­tant that we con­tinue to en­gage these stake­hold­ers to dis­cuss in­ter­ven­tions on how they can sup­port South Africa’s devel­op­ment process, and to demon­strate our com­mit­ment to­wards ad­dress­ing their con­cerns and restor­ing con­fi­dence through the 14 con­fi­dence-boost­ing mea­sures, over and above the coun­try’s po­ten­tial to chart an in­clu­sive growth and eco­nomic re­cov­ery pro­gramme,” Treasury said in a state­ment.

Gi­gaba’s del­e­ga­tion will also hold meet­ings on strength­en­ing the con­stituency of­fice in the World Bank and forg­ing eco­nomic part­ner­ships as South Africa shares a con­stituency of­fice with An­gola and Nige­ria that is rep­re­sented by a South African ex­ec­u­tive di­rec­tor at the board of the Bank.

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