FEDUSA

The Federation of Unions of South Africa (FEDUSA) believes that the Monetary Policy Committee (MPC) missed a golden opportunity today to start the New Year off with an economically positive boost.

“It is becoming evident that the MPC is not taking account of the Finance Minister’s letter to the SARB Governor last year, in which he explicitly requested the Committee to be more flexible in their approach and also include other issues when considering the repo rate.  A further cut in interest rates is needed to increase consumer spending which increases aggregate demand and creates a platform for sustainable economic growth and job creation. The reality our situation is that while we are not stuck in a recession, South Africa is not growing fast enough to address the serious structural problem of mass unemployment,” stated FEDUSA General Secretary, Dennis George.

FEDUSA maintains that inflation targeting is important for the purpose of price stability; however this one goal cannot be pursued relentlessly to the determent of sustainable economic growth and job creation.

Continue reading FEDUSA BELIEVES MPC MISSED GOLDEN OPPORTUNITY

The Federation of Unions of South Africa (FEDUSA) is calling for an interest repurchase rate cut of at least 100 basis points in order to effectively stimulate the South African economy and begin to address the serious issue of unemployment.

“While the Monetary Policy Committee (MPC) is currently meeting to asses South Africa’s price stability, FEDUSA would remind them to fully take account of the Finance Minister’s letter to the SARB Governor last year, where he explicitly requested the Committee to be more flexible in their approach and also include other issues when considering the repo rate.  We cannot afford to maintain interest rates at the current level if we are really serious about stimulating the economy and creating jobs,” stated FEDUSA General Secretary, Dennis George.

FEDUSA has in the past and will continue to call on the South African Reserve Bank (SARB) to firstly broaden the scope of the MPC’s mandate, which is currently geared only at inflation targeting, and secondly to pursue a model of fiscal stimuli as opposed to fiscal austerity.

Continue reading FEDUSA CALLS FOR 100 BASIS POINTS CUT

The Federation of Unions of South Africa (FEDUSA) is very disappointed by the findings of Auditor-General Terrence Nombembe’s report of financial irregularities, poor financial controls and poor reporting by departments in the 2010/2011 financial year end audit.

“We must applaud the good work being done by the office of the Auditor General and support his calls to prevent wasteful expenditure, improve supply chain practices and ensure adherence to the Public Finance Management Act (PFMA). FEDUSA is pleased that the Auditor General is keeping departments on their toes and has conducted investigations into the financial affairs of at least 23 departments and 48 public entities,” stated FEDUSA General Secretary, Dennis George.

FEDUSA fully supports the Auditor General’s report that recommends vacant positions be filled with competent staff in all government departments and public entities. The report continues to say that effective audit committees should be in place to ensure effective governance structures in the form of internal audits and risk management.

Continue reading FEDUSA CONDEMNS WASTING OF TAX PAYERS MONEY