Recent statements by the Democratic Party with respect to local government finance is yet another indication of the alarming ignorance of the Leon-dominated DP on issues of finance and economics.
It is worth noting that in its most recent Quarterly Bulletin the South African Reserve Bank states "In comparison with the first quarter fo fiscal 1994/1995, the finances of local authorities and other public-sector entities improved in the first quarter of fiscal 1995/1996."
Against this background comes Tony Leon's claim that Gauteng is in debt to the tune of R1.8 billion. On paper there is such a service charge debt among local authorities in the Province. But it is mischievous and a distortion to suggest that the implication of this is that local government is actually R1.8 billion out of pocket.
Most of the debt has been accumulated over the last ten years; it dates as far back as 1984/5 when communities began their boycott of local authorities (local authorities in which the Democratic Party played a major role) because of their illegitimacy and the abysmal services they provided.
It also applies primarily to Alberton and the Greater Johannesburg area - where the Democratic party was a leading player until the democratisation process began.
Almost all the R 1.8 billion has technically been written off, but is still reflected on the books of some local authorities because of delays of writing off of debts or the physical transfer of these suspense accounts, as per national and provincial agreements.
These Agreements date back to 20 January 1994 when President Nelson Mandela and FW de Klerk signed the historic Finance, Service and Service Charges Agreement at the World Trade Centre.
On 25 November 1994, the National Minister of Provincial Affairs and Provincial MEC's cemented this agreement by enablin Lrvice charge arrears.
This was followed at provincial level by the Signing of the Boksburg Agreement the very next day, when Provincial Government, civics, local authorities, and other stakeholders undertook to write off service charge arrears. This effectively absolved new transitional authorities of the debt burden incurred by their illegitimate, undemocratic predecessors.
The way in which the DP has distorted this information is indicative either of their gross economic and financial illiteracy, or of their unashamed political opportunism.
Judging by the comments made by the Gauteng representative of the family dynasty, Peter Leon, one of the brothers who control the Democratic Party, seem to believe that the Russian economic experience or the Thatcherite strategy hold the solution for South Africa's economy. They conveniently forget Russia's triple figure inflation and the fact that the Thatcher experience resulted in a massive increase in British unemployment to the tune of 3,5 million people. Just the solution for South Africa economy!
Personally, we think that the Leon brothers lack the economic acumen to run a spaza shop let alone a local authority.
They make their ignorant economic pronouncements, totally ignoring the reality that the Gauteng economy is growing at around 4% this year (according to private sector economists), that inflation is at its lowest level in 22 years and that bu10 year high.
Come on Tony and Peter if you support a growing, well managed economy, acknowledge the success to date of the ANC-dominated government of national unity.
For more information, please contact Donovan Cloete on 083-253-1694.
Issued by the Department of Information & Publicity ANC Gauteng Province P.O. Box 8299 Johannesburg 2000 12 October 1995