DA IS APPALLED AT JOHANNESBURG FINANCE SHOCK
In the Gauteng provincial gazette extraordinary number 166 there were shocking revelations as regards the finances of the City of Johannesburg council in respect of the year ended 30 June 2010. Among other things, the following is revealed: R8.4bn owed in unpaid bills. The city spent R4.2bn on capital expenditure, which is 22% less than provided for in the adjusted Budget. Council also overspent its R26bn operating budget by 29%, i.e. an overspend of R7.5bn. The council only spent 6% or R91m of its R1.65bn capital budget for roads. On the positive side, the council received 19% more than its R28.9bn adjusted Revenue budget.
Mr. Mike Moriarty, DA spokesperson on Finance in Gauteng said, "this explains why services are declining in the City. These figures are alarming. The province must use its powers in terms of section 136 of the Municipal Finance Management Act. They must act before things get any worse."
Councillor Patrick Atkinson, DA convenor of Finance in Johannesburg said, "you must decide how you want to react. My view is that you should say things like, 'The council has been hiding the facts from the councillors. Things have deteriorated greatly.' The Mayor and MMC for Finance must table an emergency rescue plan in an urgent sitting of council or they should resign."
Statement issued by Mike Moriarty, DA spokesperson on Finance in Gauteng, and Council Patrick Atkinson, DA convenor of finance in Johannesburg, October 25 2010
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