Charity begins at home

President Jacob Zuma had committed $2 billion of South Africa's reserves to the IMF at the G20 summit, a meeting of the world's greatest economies, in Los Cabos, Mexico.


These funds will remain part of our foreign reserves, currently standing at just under $48 billion. 


Participating countries with no way out of a financial crisis would be able to access these funds through a temporary loan, with conditions.

The funds were committed based on the premise that South Africa's voting power and quota shares in the IMF would be reformed, as agreed to in 2010. It now seems we have to pay to get what was already agreed upon 2 years ago. 

Cosatu has demanded to know which ANC conference resolutions gave the government a mandate for such a contribution to the IMF. It is not clear whether even the ANC (national executive committee) was even consulted over the decision.

In an announcement late Monday, the IMF said China was offering $43bn, Brazil, Russia, India and Mexico $10bn each, $5bn from Turkey, and smaller sums from a handful of other up-and-coming economies. 

China's contribution was the most keenly awaited. The world's second-largest economy has the largest pile of foreign reserves, $3.2 trillion. Although this seems like an enormous of amount of money the reality is that it equates to just over 1.3% of their foreign reserves whereas South Africa's commitment is almost 4% of our total reserves. Someone has to relook at their maths before we jump in boots and all.

China's contribution fell below only Japan's $60bn and German's $54.7bn, but was ahead of France and all other donors. 

The largest economy, the United States, is not contributing, despite its huge voting power on the IMF board. 

While Washington has insisted Europe has enough resources to resolve its problems itself, it is also clear that the deeply divided Congress is in no mood, given the US economic problems, to contribute rescue funds for others. 

I personally think the United States has it right. Charity begins at home. With 24% official unemployment and nearly 50% of the population living in poverty do we really have the right to commit funds from our piggy bank when so many of our own people are living on the breadline.

If the $2 billion is so easily allocated, then maybe we could have avoided the e-tolling debacle and paid off some of our own bills.

The week that was...14 June 2012

   A really interesting few days in South Africa with Bheki Cele, ex Commissioner of Police being fired, President Zuma reshuffling his cabinet just before Manguang and the baby Boks scraping to win to get into the under 20 Rugby World Cup semi's.

Bheki Cele on Thursday became the third high-profile casualty of the police lease saga when he was fired by President Jacob Zuma.

Cele was sacked eight months after he was suspended by Zuma after Public Protector Thuli Madonsela laid the blame for the controversial police office lease deals at his door.

He has been replaced by Mangwashi Phiyega, the country's first woman police chief, who is a relative outsider to police circles, which has immediately raised objections from the DA who are unhappy with her lack of policing experience.

She is currently the chair of the presidential review committee on state owned enterprises, and deputy chair of the independent commission on the remuneration of office bearers.

Phiyega has considerable management experience, she has been a trustee of Nelson Mandela's foundation and an executive at Barclays-owned banking group Absa.

   For those involved in the e-tolls debacle, the price has been their jobs. The transport minister, Sibusiso Ndebele (to correctional services)n  and his deputy, Jeremy Cronin (now deputy minister  of public works, have both been replaced in the wake of the Gauteng e-tolls debacle after President Jacob reshuffled his cabinet on Tuesday.

The reshuffle on Tuesday, the third in as many years, followed a special ANC national executive committee (NEC) meeting on Monday, where Zuma received a massive boost after the NEC decided with a clear majority to reject efforts by expelled ANC Youth League leader Julius Malema to have his sentence overturned.

By appointing some key backers into vacant positions, without sacking anybody, Zuma was seen to have strengthened his hand.

   Other changes include, Lindiwe Sisulu moved from the defence ministry to public service and administration to replace the late Roy Padayachie. The move has been seen as a demotion as she is said to have harboured sympathies for Malema

   Nosiviwe Mapisa-Nqakula is the new defence minister, while Sibusiso Ndebele has taken up her position as correctional services minister.

   Public Enterprises Deputy Minister Ben Martins will replace Ndebele as minister of transport.

Oh, and on a positive note, the baby boks showed great heart by beating the English, with four second half tries, gaining a spot in the Under 20 Rugby World Cup semi-finals. SA will be playing Argentina while New Zealand faces Wales in the other semi-final - GO THE BABY BOKS!