2.5bn AFD loan: City of Joburg sells residents out to transactional politics

25 July 2024

The GOOD party in Johannesburg put residents first today and voted against the questionable R2,5 billion loan from the French Development Bank (AFD) which will place an unnecessary financial burden on residents for the next 15 years.

The loan was approved with the support of ActionSA, the DA and the ANC, among others, with GOOD being only one of two to vote against it.  

GOOD has consistently been asking for additional information and more clarity on the loan that was put forward without any project plans. Despite this, it seems only a privileged few got their questions answered, while the full information was not shared with Council as a collective.

While we as GOOD understand that Metros need to raise funds and often engage both local and international lenders for bonds and long-term loans, the rule of law and due process must always be adhered to.

Unfortunately, without project plans and details, this loan defies the basic requirements of the Municipal Finance Management Act and violates principles of good governance. 

In a city, like Johannesburg, where roads are falling apart, traffic lights are not working and water systems are crumbling, the focus should be on infrastructure. 

Therefore, GOOD stressed that if this loan was earmarked to improve infrastructure, it would have been something worth supporting. 

However, we do not know and cannot support this blindly. 

The City of Joburg is already in shambles as a result of years of transactional and hypocritical politics - and now we find ourselves back here again.

Issued by Matthew Cook, GOOD National Chairperson and City of Johannesburg Councillor, 25 July 2024