Date: Wed, 29 Jul 1998 09:23:12 +0100
Reply-To: Forum on Labor in the Global Economy <LABOR-L@YORKU.CA>
Sender: Forum on Labor in the Global Economy <LABOR-L@YORKU.CA>
From: Anna Weekes <samwu@WN.APC.ORG>
Subject: Scrap the odious apartheid debt!
Scrap the odious apartheid debt!
By Linda Ensor, Business Day
29 July 1998
CAPE TOWN - Legislation to increase state debt by R936m to relieve
provinces of their apartheid debt legacy was tabled in Parliament
However, the memorandum to the Inherited Debt Relief Bill stressed that
debt servicing costs for this fiscal year would not rise as a result of the
debt being incorporated into the national debt portfolio.
"Provision has already been made for the additional servicing cost
resulting from the national sphere of government having effectively assumed
responsibility for the discharge of the inherited debts," the memorandum
The debts, as of March 31 1995, consisted mainly of bank overdrafts,
outstanding liabilities and amounts owed certain pension funds.
The bill follows a cabinet decision last year to relieve affected provinces
of their inherited debt. It would also compensate Mpumalanga and the
Northern Province for the debt repayments already made.
In terms of the interim constitution, the Eastern Cape inherited debt of
R597m - the bank overdraft of the former Transkei - Mpumalanga R58m, North
West R189m and Northern Province R92m.
The bill stipulated that the transfer to the provinces would be subject to
the terms and conditions imposed by Finance Minister Trevor Manuel.
The final inherited debt figure was determined with much difficulty because
of missing accounting records and an absence of supporting documentation.
For more information on the campaign to scrap the apartheid debt, please
contact Brian Ashley at the Alternative Information and Development Centre