ActionSA leader Herman Mashaba. (File photo)
Despite a strong stance against forming a coalition with the ANC, ActionSA in the Johannesburg metro is considering voting with its avowed enemy to approve a much needed R2.5 billion loan that has already been rejected three times in council.
The ANC has failed to get support from its coalition partner, the Economic Freedom Fighters (EFF), in three votes for the loan from the Agence Française de Développement, which is to be repaid in 15 years and is intended to fund capital expenditure projects.
The ANC and minority parties have been lobbying ActionSA after the EFF abstained from two votes and opposed the loan at a third council meeting held last week, sources told the Mail & Guardian.
The M&G also understands that ActionSA was formally approached during last week’s council sitting by the minority parties and the ANC to replace the EFF in the city government.
The sitting meant to debate and vote on the loan saw the EFF refusing to vote in favour of the loan, which ultimately led to the motion being defeated by a margin of 118 to 111. Three councillors abstained.
The tension between the two parties arose after Ekurhuleni mayor Nkosindiphile Xhakaza removed the EFF’s Nkululeko Dunga as member of the mayoral committee (MMC) for finance and replaced him with the ANC’s Jongizizwe Dlabathi.
High-ranking sources in the ANC told the M&G last week that MMCs from the EFF would be removed from their positions because they “serve no purpose” in the coalition.
One said the removed MMCs would not be replaced immediately.
An ActionSA source said the party would be willing to vote for the loan on condition that Johannesburg finance MMC Dada Morero considers scrapping the controversial R200 service charge for prepaid electricity, which came into effect on 1 July but has received a serious push back from residents, civil society and political parties.
Last week, ActionSA voted against the R2.5 billion loan — after earlier asking for a caucus break to decide whether to support it — to the annoyance of the Democratic Alliance (DA).
The source said ActionSA would not permanently vote with the DA or the ANC but would support any motions brought to council by any party, as long as they were beneficial to residents.
“If Morero scraps that R200 for the electricity metres, then I will happily raise my hand to vote for the loan. This does not mean we will be voting with the ANC in the future, we will vote with them from issue to issue,’ they said.
“You know [ActionSA leader Herman] Mashaba’s stance on the ANC. We have just said we will be a constructive opposition and we will be voting for things that benefit residents.”
ActionSA Johannesburg caucus leader Nobuhle Mthembu said the party has been “consistent in its convictions” and has in the past passed items brought to council by the EFF or ANC which were “beneficial to the community”.
For example, ActionSA had brought the eradication of bucket toilets to council, but failed to pass it. The same motion was later brought by the EFF, and was backed by ActionSA, Mthembu said.
She said the ActionSA Johannesburg caucus would meet to discuss whether to support the loan either the day before the council meeting or on the same day the vote will take place.
City of Johannesburg group chief financial officer Tebogo Moraka told the M&G on Monday that a prolonged delay in passing the loan would affect the city’s cash flow.
“We were expecting it to come in and now it’s not coming in, meaning that it disturbs cash flow management and payments of capital expenditure linked expenses,” he said.
“Capital expenditure means the money we would have spent on upgrading water reservoirs, pipes for water, upgrading substations for electricity, fixing road infrastructure, so anything capital in nature is affected by this.”
Asked how long the city could survive without the loan, Moraka said as administrators of the city, they would do whatever was within their powers to make sure the city survives, “no matter what”.
The council is expected to sit for the fourth time next week to debate and vote on the loan.