DA accused of flouting MFMA

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Ayanda Mdluli

The ANC Caucus in the City of Johannesburg is accusing the DA of flouting the Municipal Finance Management Act (MFMA).

In a scathing attack, the ANC’s Convenor of Governance Geoff Makhubo said he was shocked that the DA has continued to try and solicit a R1.5 billion loan from the Develop Bank of Southern Africa which is “illegal”.

“These illegal acts by the DA were exposed at the Council Meeting which took place on, 20 March 2018 where the DA proposed Council adopts a resolution to secure a loan of R1.5 billion with the Development Bank of Southern Africa (DBSA) without complying with the Municipal Finance Management Act (MFMA).

He claims that the DA failed to comply with the provisions of section 46(3) (b) of the MFMA which states that: A copy of the information statement be submitted to the municipal council at least 21 days prior to the meeting of the council, together with particulars of the essential repayment terms, including the anticipated debt repayment schedule, and the anticipated total cost in connection with such debt over the repayment period.

“Following the MMC for Finance Mr. Funzela Ngobeni’s assertion that the DA had complied with Section 46.3 of the MFMA, it became clear to Council that section 46.3 (b) was not complied with as a condition precedent to entering into a loan agreement. Not even one Councillor of the DA could rise to indicate that they had received the information statement as contemplated in the MFMA, proving that Councillor Ngobeni lied to Council about compliance with the MFMA,” he says.

Makhubo reiterated that the report to secure the R1. 5 billion loan from DBSA was rejected by Council as a result of the DA’s non-compliance with section 46.3 (b) of the MFMA.

“It is also noteworthy that the ANC Caucus in the City of Johannesburg is not against the City borrowing from the DBSA to defray capital expenditure, however, we, as the ANC in Johannesburg will not support any illegal acts of non-compliance with the MFMA,” he said.