CoJ votes in favour of R2,5bn loan from French Development Agency
The loan was sought to address the city's financial difficulties.
The Johannesburg skyline. Picture: OLYMPIA DE MAISMONT / AFP
JOHANNESBRUG - The City of Joburg has voted in favour of a R2.5 billion loan from the French Development Agency.
The loan was sought to address the city's financial difficulties.
Voting took place during an extra ordinary council meeting on Thursday morning - where a majority of the parties in council voted for the financial cushion.
The loan was previously rejected three times in council due to fears it would unnecessarily burden the city’s coffers.
Finance MMC Dada Morero said the loan was earmarked for Joburg’s operational costs.
"Today, [Thursday] the councillors of Johannesburg, in their large numbers, have collectively resolved to put the residents of Johannesburg’s interests before their own party-political interests and positions. We are now committing as councillors to ensure that we move with speed to stabilise the finances of the city of Johannesburg."
Meanwhile, ActionSA voted with the African National Congress (ANC) and its partners in favour of the loan after indicating it would be working with the ACN in Joburg and Ekurhuleni on a case- by-case basic
ActionSA caucus leader in Joburg Nombuhle Mthembu explained her party’s position: "As ActionSA we took the decision because we were furnished with all the necessary documents that answered all the questions we had. When you look at the city currently, service delivery is at a halt, we are not in a really good financial space."