Australian news, and some related international items

In South Africa- deep suspicion about the nuclear deal, as SA heads for financial armageddon

flag-S.Africafinancial-meltdownSA heads for financial armageddon, Fin 24 2017-02-26 06:02 – Justin Brown State finances face stormy times as the private sector braces itself for a possible switch in finance ministers amid spluttering tax collections, low growth, tax hikes and deep suspicion regarding the nuclear build.

Prince Mashele, a senior research fellow at the University of Pretoria, said at a PwC post-budget speech event on Friday – where Finance Minister Pravin Gordhan was conspicuously absent – that, depending on which ANC faction dominated, the next two to three weeks would be crucial in determining what would happen in the finance ministry.

Following the swift swearing-in of former Eskom CEO Brian Molefe as an ANC MP this week, Mashele pointed to the possibility of his becoming either finance minister or deputy finance minister…….

Mashele said that once Molefe was installed at Treasury, he was likely to sign off on a nuclear deal with Russia that would mean South Africa would never again enjoy the benefit of cheap power prices.

“Your grandchild and great-grandchild will pay through the nose [for the nuclear deal],” he added.

The plan by the Guptas, who are close allies of President Jacob Zuma, to install their preferred candidate as finance minister was put on hold – but not abandoned – when former finance minister Nhlanhla Nene was replaced by Des van Rooyen, whom the president reluctantly axed after pressure from the business sector, before Gordhan was placed in the position.

“They want Molefe to enter Treasury,” Mashele said, adding that Gordhan was “under siege” from Zuma and the Guptas, who were fighting court battles with him…….

March 6, 2017 - Posted by | Uncategorized

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