The departure of Michael Sachs from the National Treasury signalled an erosion of SA’s institutions, economists said on Monday in response to the news that the deputy director-general in the budget office had tendered his resignation. Alexander Forbes chief economist Lesiba Mothata said: "There’s now a clear erosion of the institutional strength that was resident at Treasury." Mothata added that a credit ratings downgrade of SA next week was now a certainty. Credit ratings agencies S&P Global Ratings and Moody’s Investors Service are both expected to review SA’s credit rating on November 24. Both agencies have consistently flagged the country’s institutional strength and commitment to fiscal consolidation. "The government’s behaviour is not consistent with investment grade, but is consistent with junk status," Mothata explained on Monday. "What’s clear is that there are completely different ways of doing things at Treasury, starting with changes in the budget process. Sachs leaving ...

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