uMhlathuze defends R600m loan as ‘normal practice’
Updated | By Steve Bhengu
uMhlathuze
Municipality has denied reports that it is going broke after it took out an R600 million loan.

Mayor Xolani Ngwezi told a press briefing on Tuesday that the money was meant for water supply and sporting infrastructure.
City spokesperson Bongani Gina says they opted for the loan instead of dipping into their existing budget.
He says it's normal practice at municipalities.
"We have a water issue here and people are demanding water, so to fix the infrastructure where some has been affected by load shedding, some have broken down water pumps which need to be replaced. That's why it was important to get this loan.
"eThekwini Municipality has done this with over R5 billion when they started the Go! project, so there is nothing sinister about it."
READ: ANC-led municipalities in KZN must reject Eskom tariff increase, says party
Gina says the loan was prompted by the tourism and recreational spin-off brought on by the ascension of Richards Bay FC to the PSL.
"Our team the Richards Bay FC has just finished play in the PSL and when they came to check the sports ground, they say it does not qualify to host PSL games. They gave us a standard to obey because this will give us lots of spin-offs, especially in our economy and tourism and those running accommodation."

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