Johannesburg not bankrupt – mayor

Mayor Herman Mashaba dismisses reports the city is facing financial distress and needs bailout.

Current cash management report puts balance at over R3.2bn, not R1.2bn as reported, says Mashaba.

City of Joburg mayor Herman Mashaba has assured residents the city is not facing financial distress and does not need a bailout, following claims to this effect in City Press newspaper yesterday.

Mashaba alleged the article violated the press code of conduct, adding the city would lay a complaint with the press ombudsman.

Yesterday, the mayor cited “an unsubstantiated report in City

Press alleging the City of Joburg is ‘cash-strapped’ and ‘heading for a bailout’.

He said: “Nothing could be further from the truth. The article makes a number of incorrect claims which only serve to manufacture panic regarding the city’s financial position.

“Worse still, these inaccuracies were specifically addressed with

City Press prior to publication. However, it inexplicably elected to spread these claims.

“The city faces no financial distress, nor is it in need of a bailout.

City Press’s headline is grossly misleading and irresponsible.”

The city’s cash management report, as required by the Municipal Finance Management Act, which was approved by the mayoral committee and was on its way to council, clearly stated the city’s cash balance was in a healthy state at over R3.2 billion, he added.

City Press “deliberately sought to misrepresent this as R1.2 billion to forward their chosen narrative”.

Furthermore, he said, the city was meeting salary commitments and at no point had there been any risk of being unable to do so, which was also addressed with the publication.

“In omitting this from the report, City Press acted irresponsibly, creating unnecessary panic among city employees.

“Our multiparty coalition government makes no apology for seeking to reverse the legacy of corruption left by the ANC.

“There has been significant mismanagement of the city’s finances by past administrations. This has weighed heavily on its financial health. This is the history of mismanagement our administration has been reversing.” –