Home South Africa City of Johannesburg re-applies for 2 billion rand loan – SABC News

City of Johannesburg re-applies for 2 billion rand loan – SABC News

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Johannesburg’s multi-party Democratic Alliance-led city government will re-apply to council to allow the city to apply for a R2 billion short-term loan from the South African Development Bank.

The council will hold a regular meeting on Wednesday, which will also see a vote of no confidence in Mayor Dr Mpho Falatse.

During a previous council meeting, the African National Congress (ANC), the Economic Freedom Fighters (EFF) and minority parties voted against the application.

It was rejected by 136 votes from the ANC and its partners to 81 votes from the DA and its multi-party partners.

Acting Chief Financial Officer of the City Group, Sinovuyo Mfakama: “The consequence of not providing the loan will be that the City risks not securing its liquidity. But these are still the main costs borne by the city. These include bulk purchases of water and electricity, wages, finance charges, loan repayments, payments to third parties which include payments to service providers, rent and our fleet.’

Mpho Palace was accused of needing a loan to cover financial mismanagement

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