ANC alleges City of Joburg concealing evidence it’s ‘on the brink of collapse’

In a statement on Thursday, the ANC repeated its now long-running allegation that the City of Johannesburg is facing economic collapse.

Speaking for the ANC’s greater Johannesburg region Jolidee Matongo wrote that Mayor Herman Mashaba’s DA-led coalition government had “collapsed the Johannesburg Municipal Council Meeting on Thursday following failed attempts to conceal evidence that the City is on the brink of collapse”.

Matongo alleged that financial reports were withdrawn “without reasons” and that these reports “contain evidence of the potential financial and institutional collapse” of the city.

The City of Joburg has repeatedly maintained that the ANC’s allegations about the city’s finances are nothing more than a smear campaign and that the city’s finances are in order.

However, it now appears the EFF may be boycotting council meetings and their “absence rendered the DA without a partner to successfully push through the reports in Council without objective scrutiny by Council”, according to the ANC.

It’s understood the EFF’s alleged boycotts in Nelson Mandela Bay, Johannesburg and Tshwane are possibly related to unhappiness at the removal of the UDM’s Mongameli Bobani as the deputy mayor of Nelson Mandela Bay. They said on August 24 that “we warn [the DA] that their behaviour in Nelson Mandela will affect all other municipalities where they rely on opposition parties in order to govern; in particular in Tshwane and Johannesburg.” 

The party has not issued a statement about any boycott. However, there was also an unexplained no-show of the EFF in the Tshwane council that delayed the sale of a mayoral mansion, dubbed the “house of corruption”, after the ANC caucus successfully collapsed the council meeting where the auction of the house was to be voted on.

The ANC’s former mayor of Joburg, Parks Tau, called on Thursday for “Johannesburg residents to be informed of the status of the City”.

He reportedly said in council, according to the ANC statement:

“Honourable Speaker and fellow councillors, we requested a caucus on the basis that the DA has requested to withdraw a number of items on the agenda before us so we can assess what items are being withdrawn and can assess the possible reasons these items are being withdrawn.

“We note with concern that the items being withdrawn are significant to the functioning of the City of Johannesburg – starting with the first item which relates to institutional review. The reality is, in fact that this process is being handled in an ad-hoc manner. Because the DA is unable to unleash the tyranny of the borrowed majority, they do not want council to objectively consider these reports, but seeks to erode the administration and the structure of the City of Johannesburg.

“We also know that, in fact, the reason for the withdrawal of Item 2 has to do with that for the past few months there has been evidence of manipulation of recruitment processes by the DA administration. So you do not want Council to consider whether you are being objective in the recommendations you are presenting to Council.

“What is more worrying is in fact, as an encroachment on democracy, you are disabling Council from considering critical oversight reports, of which critical oversight reports have to do with the potential financial ruin of the City of Johannesburg.

“You have spent the past few weeks denying the people of Johannesburg the knowledge and reality that in fact by November 2016 you were already short of R1.4 billion in revenue … that in fact by May 2017 you were already short of R3.3 billion in revenue.

“Now you are withdrawing those items so that the people of Johannesburg do not see them because, in fact, you want to deprive the people of Johannesburg the knowledge of the financial crisis. We think, in fact, it is problematic that these are matters presented for oversight that enables Council to oversee and intervene.

“The presence of the EFF will not change that the City is in a financial crisis. The presence of the EFF is not going to bring back the R3 billion that is short in the City’s revenue. It is not going to change even if you bring the reports next week or any other day. It is not going to change the reality that the Council is justifiable in that these items not be withdrawn.

“In fact, what is more concerning is that this deprives Council of an opportunity to make the appropriate decisions for collective action to be taken in instances where the institution is facing a potential collapse. Now we cannot be party to a situation where the DA seeks to manipulate Council by withdrawing critical items that should be considered by this Council.

“We suggest, Honourable Speaker, that, in fact, these critical items be placed on the Agenda of Council for consideration and oversight. Failure to do that suggests that in fact we do not have reason to be sitting in council.

“In fact, maybe next time we should call the EFF. Like it happened in the last meeting, they were not here and the meeting did not sit. There is another previous meeting where the EFF was not there and again reports were withdrawn. We are sitting with a situation. Maybe next time we should call the EFF to check for permission if they have granted Mayor Mashaba the right to present reports.

“The number of Councillors sitting here constitute almost 90% of the people who were voted in by the people of Johannesburg. These people cannot be deprived of the opportunity to exercise oversight. They cannot be deprived of an opportunity to make correct decisions – simply because you do not want to engage.
So Honourable Speaker, we suggest that the DA reconsiders its position – otherwise we do not see any reason to continue with this Council sitting.”