For the second time in a month, the City of Johannesburg council has voted against the borrowing of a R2 billion short-term loan from the Development Bank of Southern Africa. During the Ninth Ordinary Meeting on Wednesday, 137 councillors voted against it while 130 voted in favour.
The motion to borrow money that would go towards the city’s operational costs and was to be paid back in June 2023, was first tabled on 11 November wherein it was rejected.
Member of the Mayoral Committee (MMC) responsible for Finance, Julie Suddaby argued that the loan is necessary to keep the City’s cash flow healthy. The City doesn’t have a credit card, this is required to solve the cash flow problems,” she told the council.
Suddaby also spoke on the vehicles which were seized by Avis. “Vehicles were returned to Avis because contracts expired not because payment were not made, we made it clear that there is a cash flow mismatch and everyone who owns a salary understands what that looks like,”
On Tuesday night the ANC announced that 93 trucks ‘used for service delivery’ by Joburg Water were taken by Avis describing this as ‘another sad day’ in the City of Joburg Municipality. Last week ANC Caucus leader Dada Morero first highlighted that 400 cars were being seized due to the City’s failure to pay; other reports showed 2500 cars taken as well.
“Amongst the over 400 vehicles currently being withdrawn are a significant portion of vehicles utilised by the Johannesburg Metro Police Department’s Highway Patrol, By Law Enforcement and High-Risk Units. The Pikitup and Johannesburg Water fleets are also amongst the affected vehicles,” he said in a statement.
“Last week, another of the City’s Fleet Service Providers, Afrirent, withdrew its services due to non- payment by the City. These developments are shattering evidence of the DA’s disastrous management of the City and its coffers.
“Never before, have we witnessed such gross maladministration that threatens to leave the City of Johannesburg bankrupt and unable to provide services to its residents,’ Morero said. Meanwhile Joburg Mayor Mpho Phalatse will know her fate on Thursday as the council plans to go ahead with the motion to remove her. But the motion may fail as minority parties, the ANC and the EFF struggle to find common ground.
