The DA has expressed concern at how long it took finance MMC Dada Morero to get the buy-in of opposition parties in his R2.5bn French loan bid.
Despite the about-turn, DA caucus leader Belinda Echeozonjoku said it was concerning that intricate details about the cash injection were only being revealed now, on its third attempt to obtain approval.
“The loan item has once more been tabled, this time with all the requisite information for council to make an informed decision on the item.
“It is, however, concerning that this information is only made available when some parties are negotiating for positions in exchange for support for the loan, as has been widely reported.”
This is after political parties in the City of Johannesburg have had a change of heart, voting in favour of the controversial R2.5bn French loan that they had previously rejected on two occasions.
“We have been very clear that good governance is non-negotiable and it is for this reason that we requested more details to be made available to councillors to make an informed decision,” Echeozonjoku said.
The DA, EFF and ActionSA were among the major parties that previously rejected the motion, with 118 councillors voting against the loan, 111 voting in favour and three abstaining.
However, on Thursday, an overwhelming majority of 246 councillors gave the green light for the city to get this cash injection to aid its ailing finances.
To aid the city's crippled coffers, Morero vowed to embark on an “aggressive revenue collection process”.
“This is an attempt to increase our revenue collection rate from 36% to a 90% target which will then ensure the city is able to fund its capex (capital expenditure) projects and be able to support its opex (operating) expenditure.”
With the loan, the city plans to fix, replace and upgrade roads, bridges, water pipes, wastewater plants and the power grid.
Morero urged residents to play their part in rescuing the finances of the city by paying for the services they consumed.
Echeozonjoku noted the city's revenue enhancement efforts.
“This will greatly assist the city to honour its financial obligations under strained circumstances.”
The DA had also written to the finance minister,National Treasury and Cogta to monitor the loan and ensure it is used for its intended purpose.
The DA caucus leader urged the city to take the decisions to write off some debts owed to the city under review, saying there cannot be zero consequences for those who placed the city in a more difficult position than it needed to be in.
“The DA maintains that negotiating positions in exchange for support of loans or any items brought before council, like a surcharge write-off, is not in the best interest of the residents of Johannesburg. This council cannot claim to be an informed decision-making body, that holds residents’ best interests at heart while playing cheap politics for positions,” she said.
ActionSA. the third largest party in council with 44 seats, says it gave the loan a nod after Morero played open cards, providing the council with the critical details required to carefully consider the proposal.
The party has recently indicated its interest in working with the ANC under strict conditions, which include the removal of Johannesburg mayor Kabelo Gwamanda and the scrapping of the controversial R200 prepaid electricity surcharge in exchange for its issue-by-issue vote in council.
Nobuhle Mthembu, party caucus leader, echoed the sentiments around the city bolstering its revenue collection efforts.
“This is to offset the future need to increase the city's already significant debt burden. As a reminder, the city finds itself borrowing R2.5bn despite R8.071bn being owed to the city by 50 of the largest power users.”
ActionSA welcomed the commitment from Morero to review the R200 electricity surcharge, after immense pressure from residents.
“We expect the MMC to implement this review in compliance with the Municipal Finance Management Act prescripts that deal with the process to adjust the budget of the municipality, which takes place around February.
“Furthermore, we would like to emphasise that in supporting the (French) loan, we do so with full recognition of the vital need to prioritise service delivery in Gauteng.”
In addition, Mthembu said their loan support conditions include the axing of Gwamanda.
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