COSATU W CAPE PRESS STATEMENT

COSATU is outraged by the threats of Ian Nielsen from the DA city of Cape Town, that poor people would be forced to pay. This statement seems to reinforce the DA statement in their election manifesto that they are going cut taxation for the wealthy and that they now have to recover that money from the poor.

This statement leads the move to cut off people's services in poor communities. This statement is reckless and against the policy National Government has insisted be applied by municipalities.

Municipalities should have an indigent policy that exempts poor people with no income from paying for certain services. The City must report to the people of Cape Town how they took a R4 billion loan to provide many of the trimmings that wealthy areas have and how the loan must now be paid for by all the people. The city policy forces the wealthy to subsidise the rich lifestyles of the DA core supporters.

COSATU call for an investigation into the R4 billion loan. Why it was taken from a private institution where the interest was higher? Who took the decision to use Standard bank? Who are now making super profits from the city?

This loan that has enabled the city to put in place security cameras for all the wealthy areas is going to tie up city money through the debt and interest cost. This is a debt that future administrations and ratepayers will have to bear. This is a reason why the various costs in the city have increased way in excess of inflation.

COSATU will be calling for a forensic investigation into the mismanagement of finances taking place in the City.

Statement issued by Tony Ehrenreich, COSATU Western Cape, April 19 2011

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