Calls for Joburg mayor to step down after R9.5bn loan scandal

Mayor for Joburg, Thapelo Amad.Picture: Timothy Bernard African News Agency (ANA)

Mayor for Joburg, Thapelo Amad.Picture: Timothy Bernard African News Agency (ANA)

Published Apr 12, 2023

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The government of local unity in the City of Johannesburg is falling apart after another public scandal involving Joburg mayor Thapelo Amad.

Since his swearing-in in January, Amad has made a number of blunders that have placed the municipality in a bad light. Now the coalition partners seem to have lost faith in the mayor after an interview with the SABC in which he announced the securing of a R9.5 billion loan which he claimed was for “smart city” and “service delivery”.

But the MMC for finance, Dada Morero, said he knew nothing about this loan. The city has just received a R2bn loan from the Development Bank of Southern Africa (DBSA). The short-term loan was meant to pay service providers and to ensure that service delivery continues in the city.

Some political parties have been angered by Amad’s inability to explain what the loan was for, some have called for a motion of no confidence, while others have called on the mayor to step down. The DA in the City of Johannesburg has also asked for an investigation into this loan.

Patriotic Alliance (PA) leader Gayton McKenzie said the believed that Amad had bitten off more than he could chew. The PA also expressed its unhappiness with the coalition in the City of Johannesburg.

“We must put the residents of Joburg first and admit that we have backed the wrong horse. Thapelo Amad has been asked to climb a mountain too high for him. It’s not just harming Joburg, it’s destroying him too. We will rectify this blunder. Amad should resign now,” McKenzie said.

Meanwhile. ActionSA said it would be bringing a motion of no confidence against the mayor based on a number of poor decisions, including the proposed loan.

“Amad has shown his inability to understand the basics of a loan agreement in a television interview. Since Amad’s election, service delivery in Johannesburg has rapidly deteriorated with heaps of rubbish filling our city’s streets,” ActionSA caucus leader Funzi Ngobeni said.

ANC provincial secretary TK Nciza told “The Star” that the ANC still believed in Amad’s leadership. At the same time he said the minority parties in the City of Johannesburg had been the ones that proposed Amad to succeed Mpho Phalatse as mayor.

“We give a right to the minorities to give us a mayor. When there are problems with the mayor, no, it’s the mayor of the ANC. Even now it is the ANC that must answer for a minority mayor and it is the minority parties that we give a right to to give us a mayor,” Nciza said.

“The Star” understands that the ANC is widely divided on Amad’s role as mayor. It appears that the national structures of the party were not in support of the coalition arrangement in the City of Johannesburg.

Amad was expected to deliver the State of the City Address (Soca) next week, but it appears that the date for the event had been moved to May 5. It was not clear if the latest developments played a role in this decision.

On the other hand, the ANC in Johannesburg continued to insist that Amad was a temporary mayor.

In a statement the City of Johannesburg said the remarks by the Mayor were made in reference to the various discussions under way; and the numerous unsolicited proposals that have been directed to the City from a variety of stakeholders.

“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 and the city,” the city said.