GOOD Statement by Suzette Little,
GOOD City of Cape Town Councillor & Caucus Chairperson
26 April 2023
The City of Cape Town needs to provide clarity on the unsolicited loan of R1.8 billion from a French Development Bank which was approved in Council today, without the details around its intended purpose.
As it stands, there seems to be no good reason why the repayment burden of this loan should be placed on hard-pressed residents who will now have to pay higher rates and tariffs for a loan we don’t need.
Residents have already done their part for a City that chooses to rather “save up” and now sits with R8 billion in the bank.
The urgent application was brought before Council, despite the fact that no request or applications were made by the City for a loan. According to the report provided, the Agence Française de Developpement (AFD) approached and offered the City a loan to “support its sustainable development strategy”.
No specific projects have been identified, apart from broad “categories” ranging from access to electricity, to water and sanitation. Today’s report further states that despite these categories being highlighted, this loans remains a balance sheet funding instrument.
The approval and drawdown of this loan violates the Municipal Finance Management Act, which requires projects to be identified.
Not only does the residents of Cape Town need to know what the impact will be on rates and tariffs, they deserve to know what exactly it’s for and why exactly it is necessary.
As GOOD, we believe there can be no good explanation as to why the residents should be burdened with the responsibility of the loan repayment, especially at a time when the cost-of-living crisis continues to worsen.
Media Enquiries:
Suzette Little, GOOD City of Cape Town Councillor
Cell: 073 321 5036
Email: suzettel@forgood.org.za
Janke Tolmay, GOOD Media Manager
Cell: 0733671223
Email: janke@forgood.org.za