CoJ council rejects R2 bn loan application for a second time

This as mayor Mpho Phalatse was at pains to emphasise the importance of the loan for service delivery at a press briefing she held moments before the council sitting on Wednesday. 

One hundred and thirty (130) councillors voted in favour of the loan, while 137 voted against it. 

In the briefing, Phalatse stressed that acquiring a business loan is normal practice that had been employed by the city in previous years. 

The ANC and minority parties in council have accused the mayor of needing the loan to cover up alleged financial mismanagement, a claim Phalatse has rubbished. 

“The disinformation by a corrupt cabal that short-term loans are unacceptable and that it somehow proves that the city is broke is unjustified and a political powerplay at best,” she said. 

“It must be noted that although illegally installed, the government led by councillor Dada Morero also recognised the possibility of a cashflow mismatch that could affect the city, so much so that councillor Morero and his cabal were ready to table the same report before council which was signed by the then illegal MMC for finance Margaret Arnolds,” Phalatse continued. 

ALSO READ: Phalatse confident in Joburg ability to repay R2bn DBSA loan

In a statement, Finance MMC Judy Suddaby expressed disappointment, echoing Phalatse’s claim that the opposition councillors of placing their political aspirations ahead of service delivery.  

“The no-vote for a second time disappointed me, it is short-sighted, especially since the MPG (multi-party government) had clearly shown it was a normal business decision to assist the City's cash flow at this time. This action confirms that the ANC and the minority party coalition don't have the residents and businesses of Joburg at the centre of their decision making.” 

At the same time, the city’s group CFO Sinovuyo Makamba assured staff that the city would be able to pay salaries in November and December.