The EFF has fired back today at the South African government from the R1 billion “donation” that had been received from Johann Rupert that is to go towards humanitarian efforts to fight COVID-19.
The EFF party are describing this fiasco as a ‘sophisticated loan shark scheme’ in which Johann Rupert will indebt SMME’s in the country and long term profit from the National Disaster.
As of April 2019, Johann Rupert had an estimated net worth of $5.4billion, the “donation” given during the crisis is merely spare change for the man but the EFF is claiming that the act of kindness is not what it seems.
“Rupert is using one of his subsidiaries, Business Partners, a risk finance company to set up a sophisticated loan shark scheme that will indebt SMME’s and ensure he secures long term profits from a national disaster. He has set up a fund that he claims will help sustain small and medium business during the 21-day lockdown initiated to curb the spread of the Coronavirus. This fund will be managed by his company and small and medium sized businesses are invited to apply for aid which will have repayable loans after a one year period. The R1 Billion fund he set up and intends to finance with the profits he makes through his monopoly company Remgro, which will increase its revenue during this crisis as a result of the massacre of the informal retail sector, must be rejected with the contempt it deserves” said the EFF.
In the statement the party has said that all forms of aid should be administered by the central governments to prevent “greedy capitalists” taking advantage of businesses during this tough time. The allegations are that the “donations” given are being hidden as aid packages but in reality, they are merely ways for the business to capitalize on interest payments after the one year.
The problem that arises with the current setup is that the funds are not monitored and centralized by the government giving free reign by the businessman Rupert to bend and change rules, if the funds are centralised the transactions become transparent and businesses know exactly where they stand.
The EFF have pledged that SMME’s do not apply for the loans from Rupert as it will leave them in huge debts, they went on further to instruct the Government to disclose further details on the funds and how it will combat the “rapid spread of the Coronavirus and the economic devastation on our people”
EFF Statement on Exploitative Loans from Johann Rupert Disguised as Donations Towards COVID-19 pic.twitter.com/Tf9Ojo4m8X— Economic Freedom Fighters (@EFFSouthAfrica) March 31, 2020