ASHA SPECKMAN: 'So what?' attitude to AG will help to sink us
Kimi Makwetu's reprt should be a concern... it highlights nearly R80bn of irregular income
Auditor-general Kimi Makwetu could have a career in the movie business if he is ever so inclined. His audit report on government departments and institutions reads like the script of a horror movie. It had me wondering what it means for SA's remaining investment-grade credit rating. If we do lose Moody's investment-grade rating, the government's creditworthiness will sink further into the abyss of junk, a status that other countries rated sub-investment grade have found results in higher borrowing costs and weaker currencies. This would hurt already burdened South Africans who are eager to see the back of a tough year that included a VAT hike, an unprecedented surge in fuel prices and retrenchments. S&P Global Ratings and Fitch Ratings have already graded SA junk. The impact of that was muted, because the economy was still able to benefit from a global appetite for emerging-market assets. But should Moody's become the third agency to rate us junk, many investors will have to dump So...
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