ALBERTON – The proposal for external funding had been referred the Financial Oversight Committee for scrutiny before coming before council for approval.
The oversight committee returned with concerns about the proposed loan, that centred mainly on the municipality’s ability to repay the loan with low collection rates, and its ability to spend the loaned amount.
Opposition parties brought similar concerns to the attention of the council, while making the point that Ekurhuleni has large amounts of cash reserves that could be used, instead of external funding.
Clr Izak Berg characterised taking on the bond with large amounts of money in savings as being irresponsible and illegal. DA councillor and Finance Oversight Committee member Bruce Reid disagreed that the time is right to draw more interest-bearing debt in the present circumstances, and questioned the need for extra money with only two months remaining of the financial year.
Minority parties voiced their misgivings about the bond and voted against its issuing.
Despite the many concerns raised regarding the necessity and prudence of the bond, minority parties were outvoted and the request to issue the sixth municipal bond was approved.
