So not true. The Peronista councilpeople were saying "José Luis Borges" (as opposed to "Jorge Luis Borges") to mockingly express their opposition to the measure of honoring him. From the article you cite:
"[...] agregó Morelli, molesto porque varios de los ediles que expusieron en la sesión para rechazar el proyecto se referían al escritor como 'José Luis Borges'."