‘They will eat that money’ — R7.6bn World Bank loan to SA raises corruption and affordability concerns

A R7.6 billion loan granted to SA by the World Bank has raised questions and concerns about possible corruption.

Some are concerned whether SA needs the loan and whether it needs it can afford to repay it.

The World Bank and the National Treasury announced in a joint statement Monday that they have reached a financial agreement to strengthen SA’s Covid-19 program and healthcare system .

The loan was granted at the request of the government for assistance in funding vaccine procurement contracts and to help it “create the fiscal space needed to strengthen its healthcare system and ensure the financial and institutional sustainability is required”.

The loan will finance the procurement of 47 million Covid-19 vaccine doses purchased by the government.

More than 36 million vaccines have been delivered t administered last year of introduction. More than 33,000 vaccinations have been administered in the last 24-hour cycle.

Ismail Momoniat, Acting Director General of the National Treasury, welcomed the loan.

“SA welcomes this €454.4 million loan from the World Bank to support Covid-19 vaccination as the spread of the virus continues to pose a threat to SA’s citizens, health system and economic recovery.

“The loan is part of the government’s effort to reduce debt servicing costs by using cheaper sources of financing through multilateral development banks, while also supporting the healthcare system in responding to Covid-19. 19 through the introduction of vaccines, important research and treatment measures.”

During the year there were several investigations and arrests related to personal protective equipment (PPE) and other shady contracts Covid -19 pandemic.

Flamboyant businessman Hamilton Ndlovu was recently ordered to repay 158 million rand to the state after using front companies to supply PPE supplies to the National Health Laboratory Service (NHLS) to deliver. although they have no experience in the field.

TheSpecial Court said NHLS officials bent the rules in favor of the fronting companies and Offers found worth R172 million awarded to the controversial businessman and his affiliated companies were unlawful and void.

The arbitration panel ordered the NHLS to terminate Ndlovu, his companies and his affiliated companies Add individuals to the Restricted Suppliers Database.

Here are some responses to the loan:

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