‘Show us the money’, DA asks City of Johannesburg over R2bn loan spend

The Democratic Alliance (DA) in Johannesburg is demanding to know how the City of Johannesburg spent a R2bn loan from the Development bank of Southern Africa (DBSA).

City took a loan in tough times

Last year the government of local unity led by the ANC took a loan from the DBSA. At the time it had been reported that the City of Johannesburg was in financial difficulties with service providers not being paid. There was also uncertainty about other issues such as the payment of salaries.

ALSO READ: Is the City of Johannesburg too broke to fix Lilian Ngoyi Street?

DA caucus leader Belinda Kayser-Echeozonjoku said it was not clear what the money was spent on. She also demanded answers as to how the money was spent.

“They have to tell us how this money was spent because up to today we are hearing that there are service providers that are still not paid,” Kayser-Echeozonjoku said.

Kayser-Echeozonjoku said the City of Johannesburg was also likely to see a budget re-basement downwards meaning money allocated for certain service delivery projects will now be redirected.

ALSO READ: ‘Idea without a plan’: DA called ‘Dissolution Alliance’ as motion to disband Joburg council rejected

“This will certainly affect service delivery and we had told them that their budget is unrealistic and unfunded,” Kayser-Echeozonjoku said.

She said the City does not even have the funds to rehabilitate Lilian Ngoyi Street also known as Bree Street.

“Where will the money come from they failed to get the money from the province they must tell residents,” she said.

The City of Johannesburg responds

The Citizen questioned the City of Johannesburg about the DBSA loan and the budget re-basement, and this is what they had to say: “The City will duly communicate its plans for the adjustments budget, service delivery targets, expenditure, servicing of loans, performance among others at the appropriate time.”