Still monitoring the sloppy fall of the rand and how it affects the country’s economic stand, the Organization Undoing Tax Abuse (Outa) alerted that South Africa is an overtaxed and uncompetitive country that is inching closer to junk status
Speaking a while after President Jacob Zuma’s national address, the organization’s chairperson Wayne Duvenage expressed deep concern over the “exorbitant and increasing” costs associated with many large capital expenditure project throughout most state-owned entities in South Africa.
The organization which regarded President Zuma’s nationwide apology as an insult to the nation said his simple apology was not just enough to address the havoc caused on the nation.
“Simple apology is all we received from the head of state, along with a feeble excuse of misunderstandings and misguidedness, with a promise of new focus on policy revision related to state expenditure.”
Outa further linked the sudden rise of tax on citizens to appointments of entities whose main purpose is to extract money out of the system.
Blaming Zuma for taking much interest in his party and friends above the interest of the nation, the organization said this has “reduced our state-owned entities to heightened levels of inefficiency and poorly managed state resources which do not produce the best results at lowest cost for the people of South Africa.”
“We have become an overtaxed and noncompetitive nation and our President, along with the ruling party appear unable to focus their attention on the dire needs and work required to extricate us from our slide into junk status,” Duvenage said.
“It is unfortunate that on many occasions, when the door has been opened to pave the way to recall Zuma, the ANC’s top brass slams it shut every time,” he added.
President Zuma on Friday evening, apologized to the nation saying “It was never my intention not to abide by the Public Protector’s remedial action.” He added that he welcomed the judgment, and that he respects the ConCourt’s ruling and will abide by it.
Reacting to this, Outa’s chairperson Duvenage pointed out that Zuma’s response and that of the ANC was a lost opportunity for significant change and that this will further alienate South Africa from the international investment community.
Meanwhile, the rand which was reported to have slightly grown stronger after Zuma’s public apologies, has now weakened against the dollar in early Monday trade.
This is so despite broad-based greenback losses abroad, partly due to worries about the country’s cloudy domestic political and economic outlook.
According to Fine24, the rand moved down 0.5% at R14.7670 to the dollar by 09:05 as against R14.79 per dollar it traded on Friday .