Cope supports Mboweni’s ‘junk status’ warnings

The Congress of the People (Cope) on Wednesday appeared to place some of the blame for the country’s perilous economic status on the electorate.

“Cope is really astonished that the people of our country have allowed government to drift to this point of danger‚” the party’s Dennis Bloem said in a statement.

“One would have expected strident and unrelenting criticism from those who understand macroeconomics.”

This came as the opposition party said it was “relieved that someone of the stature of Tito Mboweni is strongly urging the government and the people of South Africa to act as ‘a dark cloud‚ mist or fog is gathering upon us as a country’ ”.

The former Reserve Bank governor on Tuesday told a graduation ceremony at the University of the Witwatersrand – where he is an honorary professor – that the country “dare not” deviate from fiscal consolidation and its commitment to spending ceilings announced in the budget‚ and if the country does not maintain a credible fiscal stance it will be at risk of being downgraded to junk.

“Mboweni made it clear that South Africa ‘cannot afford to become junk status’. It most certainly cannot‚” Bloem said on Wednesday.

The party also said that someone like former Finance Minister Trevor Manuel “should also do the same to heighten our collective response”.

“Mboweni‚ furthermore‚ is supporting what Cope and many others are demanding: government must demonstrate that it is very serious about economic growth and about taking serious steps to propel it‚” said Bloem.

“From Cope’s perspective‚ we will never tire of criticising the bloatedness of government and the evaporation of resources on consumption-side expenditure.

“Cope urges fellow South Africans to speak out now. Mboweni is right to warn of the dire consequences of a junk bond status for South Africa.

“If South Africans do not heed all of the warnings now being given‚ millions will lose out in ways we cannot even imagine.”