Following the release of a damaging Section 89 panel report into the saga, Ramaphosa faced an onslaught of criticism from the political fraternity.
President Cyril Ramaphosa in Parliament on Thursday, 29 September 2022. Picture: GCIS.
JOHANNESBURG – Fitch Ratings warned that President Cyril Ramaphosa’s Phala Phala scandal added risk to the country’s policy outlook.
Following the release of a damaging Section 89 panel report into the saga, Ramaphosa faced an onslaught of criticism from the political fraternity.
Some of the criticism over the report included mounting calls for the president to step down.
The report found there was prima facie evidence against the president after he failed to report the theft of foreign currency from his Limpopo farm in 2020.
It added that Ramaphosa might have breached the Constitution, broken anti-corruption laws and his oath of office.
The rating agency warned that political instability and a sketchy policy outlook could further weigh on short-term investment prospects if they weaken business sentiment.
Despite the warning, the United States-based credit rating agency said broad policy continuity was the likely outcome, even if Ramaphosa resigned.
According to Fitch Ratings, Ramaphosa’s potential successor was likely to emerge from a moderate wing of the African National Congress, rather than the radical economic transformation faction – which pushed for more populist approaches.
Ramaphosa filed papers at the Constitutional Court to review and set aside the report.
Meanwhile, Parliament is expected to debate the matter on 13 December.
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