The increase in the Tshwane municipality's overdraft facility from R500 million to R1.2 billion is irresponsible, the Freedom Front Plus said on Tuesday.
Councillor Conrad Beyers said the overdraft was irresponsible due to the risked attached to it.
He said it was untenable that any institution's overdraft was equivalent to nearly 10 percent of the total budget.
"Apart from the high costs of such short term financing, the debt could be called up at any time. A summary execution of a claim against municipality's fiscus could lead to total financial collapse," he said in a statement.
He said that long term solutions, instead of short term crisis management, were needed to restore financial trust in the Tshwane metro council.
He attributed the financial problems of the municipality to poor management and a total absence of future planning as a result of a serious shortage of expertise in the metro council's financial department.


