The ANC-controlled City Council of Matzikama (Vredendal and the surrounding area) will request approval at a Council meeting for taking an external loan at Standard Bank of R10 million.
The loan is in part financing of its 2018/19 capital budget. No further information is known about the term, repayment amount, interest as well as how the funds will be generated to service the nearly R100,000 per month payment.
Municipalities and government institutions were previously warned not to enter into loans to repay other debts or capital projects that cannot be repaid.
Read the original article in Afrikaans on Die Vryburger
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