City re­mains in a sta­ble Fi­nan­cial po­si­tion

The City of Jo­han­nes­burg was able to save al­most R 500- mil­lion through aus­ter­ity mea­sures in the 2016/17 fi­nan­cial year as well as re­duc­ing unau­tho­rised ex­pen­di­ture

Inner City Gazette - - Boston - By Staff Re­porter news@in­

The Au­di­tor-Gen­eral’s re­port on the city’s fi­nances was tabled be­fore coun­cil for adop­tion re­cently. The AG re­port showed that the city spent its R56-bil­lion bud­get for its fi­nan­cial year un­der the Demo­cratic Al­liance ad­min­is­tra­tion.

The city was able to main­tain an un­qual­i­fied opin­ion and im­prove its rev­enue by 4%.

Aus­ter­ity mea­sures adopted by the City of Jo­han­nes­burg yielded as the city saved R487.7-mil­lion by re­duc­ing self-pro­mot­ing ad­ver­tis­ing‚ mar­ket­ing‚ do­mes­tic and in­ter­na­tional travel‚ con­sult­ing and pro­fes­sional fees‚ and con­fer­ences and sem­i­nars.

“These sav­ings con­tin­ued into the 2017/18 fi­nan­cial year and will be redi­rected into crit­i­cal service de­liv­ery ar­eas such as main­te­nance of traf­fic lights and street lights‚ re­pair­ing pot­holes‚ in­for­mal set­tle­ment up­grad­ing‚ and the ca­pac­i­ta­tion of key City de­part­ments such as devel­op­ment plan­ning and the val­u­a­tions unit.

“This has put to an end the ANC’s cul­ture of spend­ing limited re­sources on lux­u­ries while only 38% of res­i­dents in in­for­mal set­tle­ments in the City had ac­cess to ba­sic sanita- tion ser­vices‚” Mashaba said in a state­ment.

The city achieved a sur­plus of R2.1-bil­lion and closed the year with cash and cash equiv­a­lents of R3.1-bil­lion.

A to­tal of five of the city’s en­ti­ties re­ceived clean au­dits - an in­crease from the pre­vi­ous fi­nan­cial year. It was the first time where Jo­han­nes­burg City Parks and Zoo has achieved this feat in its 15 years of ex­is­tence. Dur­ing the year un­der re­view‚ the city spent only 78% of its R9.9-bil­lion cap­i­tal ex­pen­di­ture bud­get.

“We have al­ready im­ple­mented steps to im­prove the plan­ning‚ im­ple­men­ta­tion and mon­i­tor­ing of cap­i­tal projects‚ and to max­imise spend and the qual­ity of de­liv­ery through the use of a capex mon­i­tor­ing tool in the 2017/18 fi­nan­cial year‚” Mashaba said.

Mashaba said City Power suf­fered cash flow prob­lems as a re­sult of a num­ber of is­sues out­side of its con­trol.

Mashaba said the city needs R170-bil­lion for in­fra­struc­ture over the next 10 years to deal with its cur­rent back­log.

The Mayor ush­ered praises to work done by the Group Foren­sic and In­ves­ti­ga­tion Ser­vices led by Shadrack Sibiya which he said un­cov­ered over R17-bil­lion in cor­rup­tion and mal­ad­min­is­tra­tion‚ re­sult­ing in 450 peo­ple be­ing ar­rested.

An il­lu­mi­nated new City of Jo­han­nes­burg Coun­cil Cham­ber

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