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City of Johannesburg to again table application for R2 billion loan

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The Democratic Alliance-led multiparty government in the City of Johannesburg will again bring an application before council to enable the city to apply for a R2 billion short-term loan from the Development Bank of Southern Africa.

The council will hold an ordinary meeting on Wednesday where a motion of no confidence against Mayor Dr Mpho Phalatse will also be brought before council.

During the previous council meeting, the African National Congress (ANC), Economic Freedom Fighters (EFF) and minority parties voted against the application.

It was rejected by a combined 136 votes of the ANC and its partners against the 81 votes of the DA and its multiparty partners.

The City’s acting Group Chief Financial Officer Sinovuyo Mphakama, “The consequence of the loan not being passed will be that the City is running the risk of not meeting its liquidity. But is so far as the key expenditure that the city incurs. These include bulk purchases of water and electricity, salaries, finance cost, loan redemptions, third party payments which includes payments to service providers, rentals and our fleet.”

Mpho Phalatse accused of needing a loan to cover mismanagement of finances

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