🇿🇦South AfricaSouthern Africa
Opposition parties raise concerns over Johannesburg's reliance on loans for service delivery
via The Citizen12 min read
Two opposition parties in the City of Johannesburg, the African Christian Democratic Party ACDP and the Democratic Alliance DA, have expressed significant concern regarding the metro's increasing dependence on loans to finance service delivery projects. The ACDP stated that the city has borrowed R5 billion from financial institutions over the past 12 months for infrastructure projects. Chris Rohlssen of the ACDP argues these loans are unnecessary and unsustainable, suggesting the city should instead focus on improving revenue collection, particularly the R71 billion owed by residents and businesses. Belinda Kayser-Echeozonjoku, DA caucus leader in Johannesburg, also voiced concerns about the city's borrowing habits. The DA has taken the City of Johannesburg to court over a R10 billion wage deal approved with the South African Municipal Workers Union Samwu, fearing it will divert funds from service delivery. Kayser-Echeozonjoku criticized the city's growing reliance on loans while simultaneously committing to long-term obligations like the proposed R10 billion Politically Facilitated Agreement, calling it a failure of financial discipline. She also highlighted a lack of accountability, noting that the DA has requested the National Treasury to investigate the use of a R2.5 billion loan from the Agence Française de Développement, emphasizing that borrowed funds should transparently support service delivery improvements, not mask governance failures.
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