But this conditions are silent about democratic reforms On Fri, Mar 9, 2012 at 5:49 PM, teresa debly <tde...@yahoo.com> wrote:
> Here are Gordhan's loan conditions but it seems the son of the sly fox may > have even outwitted the ANC? > > The loan guarantee is premised on four pillars. [Four pillars, is that a > hint to the comrades?]They are: > > > - Confidence building measures to be undertaken by the Government of > the Kingdom of Swaziland; > - Fiscal and related technical reforms required by the IMF and to be > implemented by the Government of the Kingdom of Swaziland; > - Capacity building support to be provided by South Africa; and > > > - Co-operation in multilateral engagements. > > BUT "Swaziland is on course to get R2.4-billion from South Africa without > any political conditions via a one-off back-door payment in the form of a > windfall from the regional customs union -- it has been claimed. " > > http://mg.co.za/article/2012-03-03-swazi-payoff-overinflated > > Swazi pay-off 'over-inflated' > > Negotiations for the loan, which was announced in August last year, had > stalled due to King Mswati III's apparent reluctance to accept democratic > reform in his country where political parties are banned and he rules with > absolute power. > > But Swaziland's Coalition of Concerned Civil Organisations (SCCCO) claims > the kingdom will get the money instead via an inflated payment from the > Southern Africa Customs Union (Sacu) and this will take away the need for > Pretoria to impose political conditions on the loan -- an assertion > strongly disputed by the South African Treasury. > > Sacu economists have forecast a near-doubling of imports into the region > and thus a greater tax income for union members. > > Sacu payments are done in advance, based on forward-looking estimates, and > had the loan deal been signed off, disbursements and repayments were due to > have been made via Sacu, which Pretoria said last year was a way to ensure > Swaziland did not default. > > Swaziland's Anglican Archbishop, Meshack Mabuza, who heads up the SCCCO, > said they suspected there had been deliberate over-estimation so that extra > funds could be released to Swaziland without questions being asked. > > "We believe these estimates are over-inflated in order to give the > R2.4-billion to Swaziland without any political or fiscal conditions," he > told the *Mail and Guardian* this week. > > "We just don’t see how with the current economic climate being so weak > that regional imports are going to grow so rapidly," the bishop added. > > South Africa's 2012 Budget Review reports a strong recovery of imports and > regional trading conditions boosting transfers within the customs union to > R42.2-billion in 2012/13, up from R21.8-billion the year before. > > Under the formula for revenue distribution Swaziland will receive > R7-billion, a substantial increase on the R2.6-billion it received in 2010 > and the R2.9-billion in 2011 and well above forecasts for 2013 and 2014, > which are around the R5-billion mark. > > Mabuza said: "It just seems very suspicious that Swaziland should be > getting so much more this year. We know there is R1-billion which was > unpaid last year that is coming now, but still, we are concerned that this > is a way of substituting a loan with political conditions with no-strings > attached cash." > > He added: "And of course this does not solve Swaziland's core problems, > which relate to poor financial management and an under-developed economy > due to poor governance. This is simply a sticking plaster." > > *’Incorrect’* > South Africa’s Treasury spokesperson Bulelwa Boqwana disputed the SCCCO's > claim as "factually incorrect". > > She told the *M&G*: "Sacu revenue shares are approved by a Council of > Ministers [trade and finance] from the five Sacu member countries." > > These approvals were determined, she said, by "forecasted collection for > customs and excise duties" and that the revenue-sharing formula had three > components, which were "intra-Sacu trade, GDP size and population, and a > development component and the calculated difference in the forecast payment > and actual collections for the previous period". > > Boqwana added that the over-inflation of payments would not be possible > because they would not "align with the forecasts", adding: "It would be > detected by the Council of Ministers, and by implication, would result in > an increase in the revenue shares to all member countries, including South > Africa." > > If a payment was over in one financial year, she noted, there would be a > need to "recover the over-payment in 2012 in 2014 [two years later] when > forecast payments and actual collections are reconciled". > > Swaziland shares Sacu revenues with Botswana, Namibia, Lesotho (which, > along with Swaziland, are known collectively as BNLS) and South Africa, > responsible for the lion’s share of the imports. > > The BNLS countries are heavily dependent on Sacu revenue and it was the > large fall in Sacu money which was the main trigger for Swaziland's recent > liquidity crisis. > > Trade expert and director of Pretoria-based consultancy DNA Economics, > Matthew Stern, explained: "The Sacu payments system is extremely volatile > and very dependent on customs revenue from imports. > > "Over the last few years we have seen imports fall sharply due to the > slowdown in the South African economy which is the main importer of high > value goods like cars and luxury items. > > "We are seeing imports rising now but they could easily drop off very > quickly, just as they have done and that has a big impact on countries like > Swaziland and Lesotho which depend heavily on Sacu." > > > > > > ------------------------------ > *From:* Rebone Tau <rebone.ramphom...@sa-liaisonoffice.co.za> > *To:* "sa-swaziland-solidarity-eom-forum@googlegroups.com" < > sa-swaziland-solidarity-eom-forum@googlegroups.com> > *Cc:* "sa-swaziland-solidarity-eom-forum@googlegroups.com" < > sa-swaziland-solidarity-eom-forum@googlegroups.com> > *Sent:* Thursday, March 8, 2012 11:31:34 AM > > *Subject:* Re: [SSN Forum] SWAZILAND CULTURAL BOYCOTT > > What are the conditions of the loan Malefo? > > > -- > NEW!!!! SSN FORUM IS ON FACEBOOK!!!! > You received this message because you are subscribed to the Swaziland > Solidarity Network Forum Google Group. > Visit the group home page at > http://groups.google.com/group/sa-swaziland-solidarity-eom-forum for more > options, pages and files. > To post to the group, send email to > sa-swaziland-solidarity-eom-forum@googlegroups.com or reply to this > message. > To unsubscribe, send email to > sa-swaziland-solidarity-eom-forum-unsubscr...@googlegroups.com > -- NEW!!!! SSN FORUM IS ON FACEBOOK!!!! You received this message because you are subscribed to the Swaziland Solidarity Network Forum Google Group. Visit the group home page at http://groups.google.com/group/sa-swaziland-solidarity-eom-forum for more options, pages and files. To post to the group, send email to sa-swaziland-solidarity-eom-forum@googlegroups.com or reply to this message. To unsubscribe, send email to sa-swaziland-solidarity-eom-forum-unsubscr...@googlegroups.com
