Moody's Visiting SA in the Middle of Political Dramas: Downgrade

SOUTH AFRICA - In Brief 18 Mar 2016 by Iraj Abedian

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South Africa's sovereign credit rating is under review. The risk is a junk-status downgrade! Earlier this week, the Moody's team arrived in SA in the midst of a huge political drama engulfing the President and some of his corrupt dealings with the Gupta family business-a diversified business group built on friendship with President Zuma! Since 2009, there has been much speculations and rumours about the improper business links between the President's family and the Gupta family. Over the past few months, however, this has taken a new turn- the Guptas are accused of "the President's Capture", appointing Ministers and other high profile executives within the public sector and the state-owned enterprises (SOEs). In the political discourse, the analysts and the commentators talk about 'the capture of the state'! The Secretary General of the ANC speaks of the rise of "mafia state". The Minister of Finance, spitting fire, raising the clarion call, rallying the nation and the business sector in particular, to fight poor governance and avoid a junk-status downgrade. He is all too conscious of the socio-political implications. Curiously, he himself is targeted by the forces within the Zuma network with a view to stall his initiative and undermine his success. No doubt, the Moody's team has arrived at a time that there is a ground swell of discontent within SA, pushing back against the spread of corruption and the abuse of executive powers by no other than the President and his family. Within the governing ANC Alliance, the quiet discontent of the past few years has burst open, and the President's hold on the party and its labour and Communist Party partners seem to be fading aw...