Mmusi Maimane, Chairperson of the Standing Committee on Appropriations, has expressed grave concern over reports detailing the City of Johannesburg’s deteriorating financial situation.
Maimane said the issue threatens the city’s ability to provide essential services and maintain financial stability.
Reports reveal City Power’s alarming R16.3-billion negative bank balance, posing a significant risk to service delivery and overall financial sustainability.
The primary driver of City Power’s financial challenges appears to be its inadequate revenue collection, resulting in a substantial R3.9-billion shortfall.
Maimane said this must be addressed as a matter of national urgency, stressing that South Africans cannot continue to pay taxes without receiving adequate basic services in return.
“This must be addressed as a matter of national urgency. South Africans cannot be expected to continue paying rates and taxes while receiving little to no return in basic services,” said Maimane.
“Municipalities are the engine rooms of basic service delivery for communities. They are under-capacitated, mismanaged, and continue to bleed public funds through wasteful expenditure.”
He added that “proper revenue systems are critical for sustainability. It is worrying that local governments, including Johannesburg, lack basic billing infrastructure. This suggests a shortage of the right personnel and institutional capacity to manage these functions effectively.”
The Standing Committee on Appropriations has already summoned both the City of Johannesburg and Mangaung Metropolitan Municipality to appear before it as they will be receiving their allocations through the 2025 Appropriation Bill.
Maimane said given the level of appropriations directed to municipalities, the financial and operational collapse of key metros is unacceptable.
“We must urgently strengthen municipal capacity and demand full accountability for every rand spent. The people of South Africa deserve better,” said Maimane.
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