Joburg mayor Amad under fire for prospective R9bn loan as PA admits it backed 'wrong horse'

Joburg mayor Thapelo Amad has been criticised over a prospective R9bn loan which he claims will be used for “service delivery issues” and to develop a “smart city”.

Amad, in an SABC interview, revealed he had secured a prospective loan.

He later clarified that the loan facility mentioned was an example of proposals received and not stated as a “final and concluded deal”.

In a statement, Amad said the loan was mentioned in the context of the interview to demonstrate a collective will of the city leadership to steer Joburg towards growth and development.

“The loan proposal referred to is but one of many unsolicited proposals advanced to the city following widely published reports on the city's financial difficulties following the Covid-19 pandemic and its subsequent economic impact on ratepayers in the city,” said Amad.

He added that there were various discussions under way, with numerous unsolicited proposals from a variety of stakeholders.

After an outcry over Amad's alleged incompetence and a public debate over his ability to lead the country's economic hub, Patriotic Alliance leader Gayton McKenzie said the developments were “embarrassing”.

“We must put the citizens of Joburg first and admit that we backed the wrong horse,” said McKenzie.

The PA leader added Amad was forced to step into a role he was not equipped for.

“Amad was asked to climb a mountain too high for him. It's not just harming Joburg, it's destroying him too.”

McKenzie said they would rectify the “blunder” and apologised to residents. He also called for Amad to resign.

The DA said the mayor might have incriminated himself.

“The executive mayor has no business getting involved in these kinds of administrative processes. This is criminal and requires investigation. The DA caucus in Johannesburg will ensure that this instance of corruption is uncovered and dealt with,” said DA Joburg caucus leader and former mayor Mpho Phalatse.

In a statement, the DA caucus emphasised that section 160(2)(d) of the constitution prohibits anyone being delegated the authority to commit the council to any loan. It said the council had no knowledge of the loan and that council processes could not be bypassed.

“The executive mayor is in way over his head and he should have allowed city officials to manage administrative processes in line with relevant legislation and the constitution. He made his statement on the nation’s public broadcaster.

“At worst, he has potentially committed an act of crime, at best he is unfit to hold office,” said Phalatse.

On Tuesday, ActionSA said it would table a motion of no confidence against Amad to “save the city from embarrassment”. The motion is scheduled to be tabled in council on April 25.

Phalatse said the DA would initiate and support legal, reasonable and democratic efforts to hold the “out of his depth ANC/EFF puppet mayor” accountable.

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