ITUMELENG MAFISA AND NOXOLO MIYA
Joburg Mayor Mpho Phalatse yesterday stormed out of council chambers after councillors rejected a R2 billion short-term loan from the Development Bank of Southern Africa (DBSA).
Phalatse and the multi-party government tried to convince council that the loan was imperative in ensuring the city was able to meet its day to day obligations, such as payment of suppliers. Difficulties in getting the loan approved have seen the municipality having some leased vehicles repossessed.
The Joburg Metro Police Department (JMPD) had been affected with more than 20 vehicles being taken away. The Star understands that Johannesburg Water would also fail to carry out some functions with some of its fleet also being affected.
The ANC in council yesterday questioned if the mayor was sailing a sinking ship. But the multi-party government insisted that the municipality would be able to pay salaries and 13th cheques despite financial problems.
Finance MMC Julie Suddaby said the problem was a “cash flow mismatch”. She refused to say the city was broke.
“The vehicles were returned to Avis because the contract had expired, not because we couldn’t pay. We are one of the few municipalities in the country that does not owe Eskom and Rand Water. We may have a credit card to tie us over but the city doesn’t,” said Suddaby.
During a vote, 130 councillors voted in favour of the DBSA loan, while 137 voted against it. Some councillors had concerns about the repayment plan of the loan.
Before the council meeting, Phalatse announced the municipality was going on a vigorous drive to collect monies owed to the city by businesses and residents.
Gauteng Health Department owed the municipality R240 million in unpaid rates and services, Phalatse said. The municipality had been in touch with the premier’s office to try to resolve the matter, but there hadn’t been any response.
“On November 15, the city wrote to Gauteng Premier Panyaza Lesufi, outlining debts owed to the city by provincial departments and entities. That correspondence has not been responded to; hence we commenced with the termination of services,” said Phalatse.
Meanwhile, a motion of no confidence was pending for the mayor with the opposition bloc having prepared two solid motions, expected to get her out of power. The EFF was expected to be kingmaker in the vote of no confidence but it is understood that tough negotiations were taking place between all parties.
Despite needing EFF support, Phalatse said the DA FedEx had decided the DA wouldn’t work with the EFF. It was a decision of the DA; not Helen Zille.
The Star