Minority parties in the City of Johannesburg have accused Mayor Mpho 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.
As the battle for the Johannesburg’s mayoral position heats up, minority parties in the city have now accused the incumber Phalatse of needing a loan from DBSA to hide the city’s financial woes.
The mayor wants council to table and approve a R2 bilion short-term loan with the Development Bank.
But 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.
“SMME’s 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?”
A former councilor from the United Independent Movement, Kevin Reddy, has questioned the timing and urgency of the loan.
“It is with grave concern that an MMC was not in a position of bringing to our attention that the city was in a financial predicament and they required a short-term loan of R2 billion. Why suddenly there’s an urgency that this report has to be tabled and has to be approved by council? Now we need a loan of R2 billion. Who negotiated this loan?”
Phalatse was ousted during a motion of no-confidence last month. However, she was reinstated following a High Court judgment that found that her removal was illegal.
The court might have brought Phalatse back to the mayoral seat, but Kabelo Gwamanda from Al Jama Ah says she can still face a possible no-confidence motion as a new date just needs to be set.
“The City of Johannesburg is faced with a financial crisis. So, the motion will be represented at the appropriate time by the proposal of the motion. But I can confidently say that we, as the majority currently, which is the minority opposition parties, the ANC and the Economic Freedom Fighters, are of the strong view that we do not want Mayor Phalatse as a mayor, and we are going to remove her as such.”
Last week, the Programmes Committee met to set a date to table a no-confidence motion. They later withdrew it. It’s still possible a new date for such a motion will be set
