Submitted by TLU SOUTH AFRICA
Africa should act urgently against mismanagement of country, says TLU SA
The downgrading of the Land Bank by credit rating agency Moody’s Investors Service is simply a symptom of the numerous problems in South Africa, says TLU SA.
The Land Bank announced this week that it would not succeed in restructuring its outstanding debt by the end of November as planned. It is now looking at March 2021 to complete the restructuring. In reaction, Moody’s downgraded the Land Bank’s ratings to Caa1.
“It is time for South Africans to wake up and pay attention to the cause of the country’s collapse on every conceivable level,” says Mr Henry Geldenhuys, the president of TLU SA. “State-owned entities receive ongoing lifelines (from non-existent state funds), supposedly to recapitalise. Sadly, this never solves the problem. It is foolish to continue treating the symptoms, while the root cause remains untreated.
“The ANC government is South Africa’s number one enemy, mismanaging the country through cadre deployment, corruption and greed. As long as the ANC remains in control, collapse will accelerate.”
The downgrade will have a dramatic impact since the Land Bank finances 27% of farmers’ production credit as well as a number of agricultural businesses. The downgrade holds severe consequences for every person in the country because a lack of input cost financing has a direct negative impact on food production.
“We are funding crime and mismanagement by continuing to pay taxes,” says Mr Geldenhuys. “We are literally enabling crime.”
Issued by: TLU SA