Johannesburg - The finances of the City of Johannesburg have come under the spotlight once more as minority parties slammed the DA for allegedly plunging the city into a fiscal crisis.
The parties told members of the media that the city was owed R40 billion by residents and businesses. The parties, which included the African Transformation Movement (ATM), Cope, and Al-Jama-ah, said the DA had wiped off the debt of some businesses and private schools in affluent areas but wasn’t collecting enough revenue.
The minorities also spoke out against a R2 billion loan that mayor Mpho Phalatse said was needed to ensure that services continue to be delivered in the city.
Phalatse had accused the speaker of council, Colleen Makhubele, of blocking a report that was essential in ensuring that the city’s refuse collectors are able to continue collecting refuse.
The minority parties said they were suspicious of the request for the R2 billion loan from the Development Bank of Southern Africa (DBSA).
ATM councillor Lubabalo Magwentshu said the loan matter was a clear indication that the DA had failed to run the metro. He said there was no indication of how the municipality would even pay back the money.
"This is what is happening right now. SMMEs are not being paid. We are told that there are cash flow mismatches. The DA must answer why they want this short-term loan as a matter of urgency," Magwentsu said.
Al-Jama-ah leader Kabelo Gwamanda said the minority parties would not support the DA’s effort to get the DBSA loan. The report was expected to be presented at the next council sitting.
"I am not going to speak on behalf of the ANC and EFF. On behalf of the minorities, we did not vote for the DA budget, which was anti-poor. We are not going to assist them to have the City of Johannesburg find itself in a mess like the one it’s in," Gwamanda said.
Gwamanda said plans were afoot to launch another motion of no confidence in Mayor Phalatse.
With the failure of the first motion of no confidence, the minority parties were planning to back the latest attempt with different reasons behind the motion.
He said the motion had to be approved in a programming committee meeting before it could go to council.
"We are of the strong view that we do not want Mayor Phalatse as a mayor, and we are strong on that," Gwamanda said.
The minority parties reminded the media that they played a big role in the revolt that now threatens the future of the DA in the metro.
The City of Johannesburg is expected to have another media briefing concerning the state of the municipality’s finances on Wednesday.
The Star