MunicipalNews

Mogale City ANC borrows another R100 million

And with no means of paying it back, the City could crumble beneath its residents' feet

Mogale City’s municipality sought a quick fix for their financial shortfall by the approval of a R100 million overdraft facility during a Special Council meeting on Friday, 22 June.

This exorbitant debt amount comes on top of numerous existing overdraft facilities and loans with various service providers.

During her speech in council, Freedom Front Plus councillor, Amanda de Lange, opposed the overdraft facility, referring to the dire financial state of the municipality due to gross financial mismanagement. After she refused to retract her statement, the Speaker of Council, Noluthando Mangole, ordered De Lange to leave the council chamber.

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This happened shortly after a DA councillor was also ordered to leave the chamber, leaving the council with less than a quorum of councillors.

In her speech, De Lange objected to the fact that the Municipal Manager was not present at the council meeting to report to council on the conditions of agreement and total repayment costs reached between Mogale City and the service provider as required.

She also queried the fact that there were no supportive documents contained in the item and stressed that these were imperative if council was to make a sound decision.

Also read: Mogale part of a R500 million financial crunch

With the opposition party’s numbers diminished, the Speaker called for a vote on the approval of the overdraft. After the counting process, the Speaker announced a 10-minute caucus before she announced the outcome of the vote. The Local Government: Municipal Systems Act 32 of 2000 requires a quorum of councillors in attendance to pass a vote. With a number of councillors not present and two others ordered to leave the chamber, there was no quorum to carry the vote. However, on her return to the chamber, Mangole unlawfully announced that the matter of the R100 million overdraft had been approved by the ANC, and refused to allow any debate on the matter.

“Opposition councillors are continuously frustrated in council by the Speaker’s constant unconstitutional rulings and manipulation of procedures in favour of the ANC’s personal agenda,” said De Lange.

A delegation of the Freedom Front Plus recently visited the MEC of Co-Operative Governance and Traditional Affairs, Uhuru Moiloa, during which the long-standing mismanagement of Mogale City was discussed. He undertook to launch an urgent investigation into the unlawful finance and administrative conditions in Mogale City.

De Lange stated that councillors cannot be muzzled or removed from council meetings when referring to mismanagement of the municipality in council because it does not suit the Speaker.

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