Cases for Cash? For an 8th straight day South Africa has reported the 4th most daily new COVID19 cases (chart below) which has helped push SA into 5th place worldwide, eclipsing many countries far more populace and undeveloped than itself, like Indonesia, Pakistan, Nigeria, Bangladesh, Mexico, etc. Even more remarkable is that 4 of the top 5 most infected countries are BRICs countries – all of them are in the top 5 except China, where it all started, coincidence? Even though China is the most populace country in the world? Did the access and clout that Chinese citizens have in BRICs countries help spread the virus? Or does the fact that South Africa and India have received 1 BILLION dollar Covid Loans from the BRICs Development Bank explain the high figures?
The Board of Directors of the New Development Bank (NDB) approved a USD 1 Billion Emergency Assistance Program Loan to South Africa last month after approving one for India earlier. While the program is allegedly aimed at supporting the ANC Government of South Africa in its efforts to contain the spread of Covid-19 and reduce human, social and economic losses caused by the coronavirus outbreak, the ANC’s spin, translation and implementation of that, means almost certainly that most of the money ends up in cadre’s pockets. Indeed CCP-virus has been the biggest windfall ANC could ever have imagined! Possibly bigger than the 1994 scramble of nations to throw cash at mandela in return for false virtue headlines!
The Program should contribute to providing critical healthcare resources and strengthening the social safety net in South Africa yet everyday headlines show the exact opposite happening, like the bankrupt Eastern Cape Health Department, where babies are dying due to corruption. The positive impacts should include trying to improve the resilience of public health sector and health emergency response systems, and facilitating socio-economic recovery. Expensive sounding words, which will come to naught, and our grandchildren will still be paying off these loans to China – we have to pay but when were we consulted? Or China will claim assets in lieu?
“The NDB is fully committed to supporting its member countries in the time of calamity. The Emergency Assistance Program Loan to India was approved in quick response to the urgent request and immediate financing needs of the Government of India in fighting Covid-19,” said Xian Zhu, the bank’s chinese vice president and chief operations officer.
In its Statement on Response to the CCP-virus outbreak, the NDB Board of Governors welcomed the establishment of an Emergency Assistance Facility to meet the emergency needs (like luxury vehicles?) of the member countries of the Bank. Emergency loans to the member countries could be used to finance direct expenses related to the fight against the Covid-19 outbreak and provide support to governmental measures contributing to economic recovery.
National Treasury welcomes the approval of the loan and together with NDB are working on final technical and administrative requirements. Final details on the loan will be published once all processes have been concluded.
The NDB was established by Brazil, Russia, India, China and South Africa (BRICs) to mobilize resources for infrastructure and sustainable development projects (allegedly), in BRICs and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development (i.e. the spread of Chinese communist influence). The NDB received AA+ long-term issuer credit ratings from S&P and Fitch and AAA foreign currency long-term issuer rating from Japan Credit Rating Agency (JCR).
