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
Minority parties in the City of Johannesburg have accused Mayor Phalatse of needing the R2 billion Development Bank short-term loan to hide financial mismanagement under her watch.
They say the mishandling of finances has left the City struggling to pay salaries.
Phalatse denied these allegations during a media briefing last week.
The minority parties held a media briefing in Braamfontein on Monday.
Lubabalo Mangwentsu from ATM, part of the minority parties, says this loan is to pay for salaries and service providers who are still not paid after rendering services to the city.
“SMMEs are not being paid, and the reason being given for the loan is the fact that there are cashflow mismatches. When you talk about cashflow mismatches, then it means you’re not paying salaries and SMMEs.”
Mangwentsu has also accused the DA of being corrupt.
“We are dismayed at the conduct of the Democratic Alliance in the governance of the City of Johannesburg. The DA under the stewardship of temporary mayor Dr Mpho Phalatse, is arrogant, corrupt and accusatory. The media has become a theatrical stage of drama and performance for the temporary mayor, Mpho Phalatse, to the detriment of the City and council. Where have you ever heard of a sitting mayor attacking a speaker in public?”
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