ActionSA Joburg Caucus Rejects Request to Acquire R2.4 Billion Loan

ActionSA Joburg Caucus, on Tuesday, 31 October 2023, rejected the request by the ANC/EFF coalition to procure a R2.4 billion loan from the Development Bank of Southern Africa. The caucus based its decision on the basis that the time given to evaluate the information was limited. 

Section 71 of the MFMA requires the accounting officer to produce and submit monthly budget statements by no later than 10 days after the end of the month. At the Council meeting held on Tuesday, the Finance MMC, Cllr Dada Morero said that the Section 71 reports are still being prepared, effectively admitting to the breach of the law.

The Joburg ActionSA caucus believes it is financially irresponsible to make financial decisions relying on limited information. The Section 71 report contains amongst other things the actual revenue, actual expenditure, variations in revenue received against projected revenue for the month and the projected revenue and expenditure for the rest of the financial year.

ActionSA is of the view that these reports should have been tabled together with the request for this loan to enable councilors to assess the need for the loan. As a responsible caucus, we reserved our support for this loan pending the tabling of all relevant pieces of information that would enable councilors to evaluate the need for the acquisition of the R2.4 billion loan.

ActionSA is committed to financial prudence, and we will continue to guard against the ANC and EFF’s irrational natural instincts to acquire debt without demonstrating the need. At a time when our residents are faced with tough economic realities, it is irresponsible to plunge the city further into debt at the expense of ratepayers.