Parliament, Tuesday, 27 May 2025 – The Chairperson of the Standing Committee on Appropriations, Mr Mmusi Maimane, has expressed deep concern over reports indicating the deteriorating financial position of the City of Johannesburg.
According to media reports, the municipality is facing a severe fiscal crisis, with City Power placing a significant burden on the City’s finances undermining the municipality’s ability to deliver essential services and financial stability.
Mr Maimane said: “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: “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.”
“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,” continued Mr Maimane.
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.
Mr 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,” concluded Mr Maimane.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE STANDING COMMITTEE ON APPROPRIATIONS, MR MMUSI MAIMANE.
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