CoJ council votes against applying for R2bn DBSA loan
The short-term loan application was proposed to council by the Democratic Alliance (DA)-led multiparty government.
JOHANNESBURG - The Joburg city council has voted against applying for a R2 billion loan from the Development Bank of Southern Africa (DBSA).
The short-term loan application was proposed to council by the Democratic Alliance (DA)-led multiparty government.
Earlier, Mayor Mpho Phalatse told reporters that taking short-term loans were standard practice for the City of Joburg but denied claims that the city was broke.
The African National Congress (ANC) in Johannesburg has accused the DA-led administration of running the city to the ground, claiming that it's now struggling to settle its debt and pay salaries.
Phalatse has denied this, accusing the ANC of spreading disinformation.
"This loan is not about the survival of the multi-party government, but to ensure that services are delivered in an uninterrupted manner."
The mayor maintained that the city was in a position to honour its loan repayments, saying a fund set up to pay loans was adequately funded for the next three years.
She lamented the failure of council to approve the R2 billion DBSA loan application, saying the resolution would impact service delivery.
