City of Johannesburg slams allegation of going broke

John Perlman interviews Nthatisi Modingoane, Deputy Director of Communications for the City of Johannesburg.

Listen below.

On Monday it was revealed that the City of Johannesburg is contemplating a downward adjustment to its R80.9 billion budget.

A leaked memo discloses a proposed budget cut of R8.7 billion for the 2023/24 fiscal year, with the City's revenue collection plunging to a concerning 75% below the standard.

The centralisation of billing, as outlined in a leaked City Power document, is identified as the cause for poor performance, growing debt, and dismal collection rates.

Additionally, there are allegations that Eskom is issuing threats to disconnect the City due to delayed payments.

Compounding its financial challenges, City Power is reportedly burdened with R10 billion in debt, potentially leading to a staggering backlog of R40 billion within the next three years.

RELATED: Is Johannesburg on the brink of a financial collapse?

In reaction to the City's modification of its R80.9 billion budget, Modingoane asserts that it's an essential legislative process.

Addressing worries about the centralisation of billing, he states that the City's billing has consistently been centralised based on decisions made many years ago, and it positively benefits their ratepayers.

Modingoane denies allegations of Eskom threatening power disconnection.

While acknowledging differences in certain areas, he insists they have never encountered an issue with the power utility cutting off electricity.

"We are strengthening and improving some of the areas where our customers have indicated that there are challenges."

Nthatisi Modingoane, Deputy Director of Communications – City of Johannesburg

"Some of these issues are really assumptions which are made without any facts."

Nthatisi Modingoane, Deputy Director of Communications – City of Johannesburg

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