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.”
Suid-Afrika moet dringend optree teen wanbestuur van land, sê TLU SA
TLU SA is dit eens dat die afgradering van die Landbank deur die kredietgradering agentskap Moody’s Investors Service bloot ‘n simptoom van die vele probleme in Suid-Afrika is.
Die Landbank het vandeesweek aangekondig dat dit nie daarin gaan slaag om uitstaande skuld teen einde November te herstruktureer soos voorheen beplan is nie. Dit sal waarskynlik nou eers einde Maart plaasvind. Moody’s het die Landbank in reaksie tot Caa1 afgradeer.
“Dit is nou tyd vir Suid-Afrikaners om wakker te skrik oor die oorsaak van die land se ineenstorting op feitlik elke moontlike terrein,” sê mnr. Henry Geldenhuys, die president van TLU SA. “Keer op keer word staatsinstellings reddingsboeie aangebied (met fondse wat nie uit die staatskas beskikbaar is nie) en word daar geherkapitaliseer. Telkens slaag dit nie. Dit is dwaas om aan te hou om die simptome te probeer behandel terwyl die oorsaak nie opgelos word nie.
“Die ANC-regering wat die land wanbestuur deur kaderontplooiing, korrupsie en gierigheid is die nommer een vyand van Suid-Afrika. Terwyl die ANC aan bewind bly, sal die reeds benarde situasie bloot versleg.”
Die afgradering hou dramatiese gevolge in aangesien verskeie landbou-ondernemings asook die produksiekrediet van 27% van boere deur die Landbank gefinansier word. Dit hou beslis ernstige gevolge vir elke persoon in die land in aangesien ‘n gebrek aan finansiering ‘n direkte negatiewe invloed op voedselverskaffing het.
“Ons is dan besig om misdaad en wanbestuur te befonds deur ons belastings wat betaal word,” sê mnr. Geldenhuys.
