Cape Town – Ratings agency S&P Global Ratings on Monday downgraded South Africa to sub-investment grade and said a massive Cabinet reshuffle shortly after midnight on Friday has put policy continuity at risk.

The decision follows a Cabinet reshuffle which claimed the jobs of Finance Minister Pravin Gordhan and his deputy Mcebisi Jonas.

Barely 24 hours into his new job as Minister of Finance, Malusi Gigaba clarified two important aspects of his new appointment which represent major shifts from his predecessor. Both aspects of the new Gigaba era should leave South Africans concerned and calling for greater scrutiny than ever before on government, political analyst Daniel Silke earlier wrote on Fin24.

“Firstly, Gigaba unambiguously placed the highly contentious nuclear power build project firmly back on the agenda.

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“The second aspect of the first 24 hours of Gigaba’s reign is perhaps more worrying. At his first media briefing, Gigaba expressed a more populist view of not only economic policy but also his world view,” Silke wrote.

The rand reacted immediately to trade at R13.71/$. By 17:53 it changed hands at R13.67 to the greenback.

S&P said the executive changes initiated by President Jacob Zuma have put at risk fiscal and growth outcomes.

“We assess that contingent liabilities to the state are rising,” the global ratings agency said in a statement.

S&P lowered the long-term foreign currency sovereign credit rating on the Republic of South Africa to ‘BB+’ from ‘BBB-‘and the long-term local currency rating to ‘BBB-‘ from ‘BBB’.

It also lowered the short-term foreign currency rating to ‘B’ from ‘A-3’ and the short-term local currency rating to ‘A-3’ from ‘A-2’. The outlook on all the long-term ratings is negative.

In addition, S&P lowered the long-term South Africa national scale rating to ‘zaAA-‘ from ‘zaAAA’, and affirmed the short-term national scale rating at ‘zaA-1’.

“The downgrade reflects our view that the divisions in the ANC-led government that have led to changes in the executive leadership, including the finance minister, have put policy continuity at risk.

“This has increased the likelihood that economic growth and fiscal outcomes could suffer. The rating action also reflects our view that contingent liabilities to the state, particularly in the energy sector, are on the rise, and that previous plans to improve the underlying financial position of Eskom may not be implemented in a comprehensive and timely manner.

“In our view, higher risks of budgetary slippage will also put upward pressure on South Africa’s cost of capital, further dampening already-modest growth.”

Source: http://www.fin24.com

BY BAKANG MOKOTO

The PEC of the African National Congress in Bokone Bophirima held its ordinary meeting in Moretele sub-region on Friday. The provincial secretary, Dakota Legoete said the PEC meeting received a political overview from its chairperson, Supra Mahumapelo and discussed amongst other issues the state of the organisation, preparations for regional
conferences, preparations for the June national policy conference as well as current political developments.

“The PEC also welcome the Cabinet reshuffle as announced by the President of the Republic of South Africa, Jacob Zuma. We congratulate the new appointees and support them in their new
responsibilities. We acknowledge the prescription as stipulated in the Constitution of the Republic,” Legoete said.

He further said the provisions of Section 91 solely gives the State President the prerogative to appoint and relieve Cabinet Ministers in order to ensure that the mandate of the ANC government as given by the electorate is implemented successfully.
“It is our belief that the decision to reshuffle Cabinet is in the best interest of the country. This will assist the government to further strengthen the radical socio-economic transformation programme through the implementation of the National Development Plan (NDP).

“We hope that this decision will benefit the people of our country, especially on the provision of quality and sustainable services. We have confidence that all the new deployees in their respective portfolios will perform their responsibilities with diligence and selflessness. The Constitution of the country and its mandate will be fulfilled as outlined in the ANC’s 2014 Election Manifesto,” he said.

Legoete added that the PEC discussed the recent developments that took place at the funeral of stalwart, Ahmed Kathrada, who originates from Schweizer Reneke in Mamusa Local Municipality. He said Uncle Kathy as Admed Kathrada was affectionately known, has been an embodiment of the principles and values of the ANC.

“We are however, concerned that what transpired at his funeral was contrary to what he stood for and what he taught us. The conduct of some speakers, in particular the former Deputy President, was an abuse of the platform. They blatantly disrespected the legacy of Uncle Kathy and used his funeral to plough seeds of division in the organization.

“They launched an attack on the President instead of using the relevant organisational protocol to air their grievances. We have mandated the PEC Officials to engage our National Officials on the recent developments instead of raising them through public spats. The  PEC pleads with all members and leaders of the ANC to refrain from playing to the gallery because that only succeeds in strengthening the agenda of the opponents of the National Democratic Revolution,” he said.
Legoete added that all ANC members and structures need to focus on the organisation’s
policy discussion documents in preparation for the June conference and on service delivery to the people.

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BY KEDIBONE MOLAETSI

The Portfolio Committee on Tourism and Rural Environment and Agricultural Development will be conducting pre-public Hearing Stakeholder Workshop on the MINERAL AND PETROLEUM RESOURCES DEVELOPMENT AMENDMENT BILL [B15D – 2013] from the 03 – 10 April 2017 in the Rustenburg Local Municipality.

North West Provincial Legislature spokesperson, Namhla Luhabe said: “The bill aims to amend the Mineral and Petroleum Resources Development Act, 2002, as amended by the Mineral and Petroleum Resources Development Act, 2008 (Act No.49 of 2008).

“So, as to remove ambiguities that exist within the Act, to provide for the regulation of associated minerals, partitioning of rights and enhance provisions relating to the regulation of the mining industry through beneficiation of minerals or mineral products, to promote national energy security, to streamline administrative processes, to align the Mineral and Petroleum Resources Development Act with the Geoscience Act, 1993 (Act No. 100 of 1993), as amended by the Geoscience Amendment Act, 2010 (Act No. 16 of 2010),”  Luhabe said.

She further said the workshop will to provide for enhanced sanctions, to improve the regulatory system and to provide for matters connected therewith. Luhabe added that the Committee is conducting workshops on the bill with communities in mining areas to solicit impressions on the Bill and to inform them on how the Bill affects them, as well as get valuable inputs from these affected communities.

The Workshops are scheduled as follows (four areas per day):

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