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06 March 2020 | Story Valentino Ndaba | Photo Stephen Collett
Lesetja Kganyago, Governor of the South African Reserve Bank
Reserve Bank Governor, Lesetja Kganyago, presented a public lecture at the UFS on 4 March 2020.

With a 7% fiscal deficit on the Gross Domestic Product (GDP) projected by the National Treasury for the 2020/21 financial year, it would not take long to arrive at a dangerous level of debt at the rate that South Africa is borrowing. Although the South African Reserve Bank Governor, Lesetja Kganyago, does not consider a debt to GDP rate of 60% a disaster, he did express his concern regarding the country’s fiscal deficits being over 6% of the GDP.

Governor Kganyago presented a public lecture at the University of the Free State (UFS) on 4 March 2020, focusing on how we should use macro-economic policy and its role in our economic growth problem.

Unsustainable policies 
South Africa’s fiscal situation is not about tight monetary policy. According to the Governor: “Weak growth is endogenous in our fiscal problems. We cannot keep doing what we are doing and hope that growth will recover and save us. Growth is low, in large part, because of unsustainable policy.”

Avoiding an impending crisis
To address the problem, as a policymaker with more than 20 years’ experience, the Governor suggested that the recommendations made by Minister Tito Mboweni be taken into consideration. “The Minister of Finance, Tito Mboweni, is a man who says things that are true even when they are unpopular. His message is that we have to reduce spending and he is right to put this at the centre of our macro-economic debate,” said Governor Kganyago.

The state needs a radical economic turnaround strategy which is able to diminish the risk of losing market access and being forced to ask the International Monetary Fund for help. Governor Kganyago is positive that such a reformative tactic would go beyond monetary policy and ensure that the interest bill ceases to claim more of South Africa’s scarce resources. 

News Archive

RC members of Armentum not expelled from residence
2009-05-29

According to a memorandum of agreement that was concluded between the University of the Free State (UFS) and the Residence Committee (RC), the Senior Bond Committee and seniors of the Armentum Residence, the parties involved agreed, among others, that the RC members of this residence would not be expelled from the residence.

This follows an incident during which a first-year student from Armentum, Alex Marais, was injured because of alleged initiation and admitted to the Bloemfontein Medi-Clinic.

According to the agreement, the RC members will resign from their positions and not make themselves available for the next RC election, with the exception of Mr M.J. Pretorius, the RC member for Rag. He will stay on as unelected member of the interim RC. The UFS undertook to pay the RC that is stepping down their honorariums honorariums in August.

The UFS also gave permission to the Residence Head of Armentum, Adv. Bradley Smith, to appoint an interim RC for the remaining period of office of the current RC.

The Senior Bond must also undertake to submit the current rules of the Senior Bond Committee to the Acting Rector, Prof. Teuns Verschoor, before 1 June 2009. The Senior Bond Committee undertakes to comply strictly with these rules, also during Senior Bond activities.

In addition the Senior Bond Committee and the current Residence Committee must submit the following information to Prof. Verschoor before the reopening of the UFS for the second semester :
- The current orientation practices with regard to first-year students.
- Proposals on how the practices can be adjusted to render them enforceable within humane, reasonable, fair and humanitarian limits in order to implement and comply with the objectives of orientation, the exercising of control and the laying down of rules.

The compensating fine that was levied against the tuition fees accounts of senior students of Armentum, which would have been used to contribute to the medical costs of Alex Marais, is now cancelled.

This settlement is final and the parties will not lay any claims against each other as a result of this incident in future.

Media Release:
Mangaliso Radebe
Assistant Director: Media Liaison
Tel: 051 401 2828
Cell: 078 460 3320
Email: radebemt.stg@ufs.ac.za
29 May 2009

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