Today, during the Council Meeting on ITEM 1 – the Operating Budget and its Annexures (A to D) for the 2023/2024 Financial Year, the Democratic Alliance (DA) voiced significant concerns regarding the management and transparency of the city’s financial affairs by the ANC/EFF/PA coalition Government.
The DA has identified a disturbing trend where the ANC/EFF/PA coalition Government is withholding critical financial reports from both the council and the Section 79 Group Finance Oversight Committee. Notably, the most recent Monthly Budget Statement (Section 71 report) available dates back to 31 January 2024, and covers only until October 2023. This lack of timely financial reporting hampers the ability of councillors to make informed decisions, particularly concerning the approval of an adjustment budget.
Furthermore, the DA’s attempts to engage with the MMC of Finance for a comprehensive understanding of the proposed budget adjustments have been met with silence. This lack of engagement and transparency fails to address the interests and needs of all 135 wards within Johannesburg, undermining the principles of good governance.
Upon examination of the Operating Adjustment Budget, the DA has identified several areas of concern, and reasons we chose to vote against its passing:
– A substantial operating deficit of R 563.7 million as of 31 December 2023, significantly higher than the budgeted deficit.
– A decrease in the city’s revenue by R 4.2 billion, with notable underperformance in service charges and JMPD fines, resulting in a lower surplus than initially budgeted.
– Increases in employee-related costs, interest, and other losses, which further strain the city’s finances
– There is a substantial oversight in terms of infrastructure repair and maintenance, without which, the residents of Joburg’s taps will run dry again
Parties who voted for this flawed budget are as follows: ANC, ActionSA, EFF, PA, AIC, PAC, IFP, AHC, Good, UDM, and Al Jamaah. Those who voted against its passing, are the FF+ and the DA.
In light of these findings, the DA calls for the implementation of S93B subsection c) i) and ii) of the Municipal Systems Act for all Municipal Owned Entities that are factually insolvent. This measure is essential to address the ongoing financial instability and ensure the sustainability of vital city services.
The DA also highlights the failure of the Executive to provide the necessary reports to the Section 79 Group Finance Oversight Committee, as required. This neglect of duty undermines the committee’s oversight function and further emphasizes the need for intervention by the Chair of Chairs and The Office of the Speaker.
The Democratic Alliance remains committed to ensuring transparency, accountability, and responsible financial management within the City of Johannesburg. We urge the council and the ANC/EFF/PA coalition Government to take immediate action to address these concerns and uphold the principles of good governance for the benefit of all residents.