DA wants hearing on new evidence of Joburg collection crisis
The DA in Gauteng has requested a special meeting of the Gauteng Finance Portfolio Committee to address the alarming decline in revenue collection in the City of Johannesburg as a consequence of the on-going billing crisis.
As a result of the on-going billing crisis, faulty statements to residents and the resultant inability by the city to apply credit control, revenue collection rates have fallen to a historic low. The full report is available here.
The percentages below reflect the amount of rands recovered relative to amount billed. The amount of accounts not paid is considerably worse than the figures suggest. Also, a payment rate of below 95% is considered to be on the scale of civil disobedience.
|
Property assessment rates (July) |
62.6% |
|
Refuse collection charged by Pikitup (July) |
69.6% |
|
Electricity (July) |
76.2% |
|
Water and sanitation rates (July) |
78.7% |
|
Overall (July) |
71.5% |
The council failed to recover R750 million in July, the latest available figure. If this trend continues the City will lose R9 billion, which will certainly be felt in the form of deteriorating services and collapsing infrastructure.
The picture is clearly horrific.
It points to the fact that the City is not in control of revenue, the most important aspect of its finances. This is occurring in the City that is the heart of the economy of the nation and the continent.
Urgent intervention is required.
The Gauteng Provincial Government and the Legislature have a constitutional oversight responsibility regarding the finances of Johannesburg, and the provincial government has the power to intervene when things go horribly wrong.
I have therefore called upon the Chairperson of the Finance Portfolio Committee to convene a special meeting of the committee to discuss this urgent matter. I have asked that Finance MEC Mandla Nkomfe also be present. The officials of the City of Johannesburg should be summoned to give account to the committee.
The dismal state of affairs of the City's finance has been going on for some time, and it is clear that those entrusted to manage the Johannesburg's finances have failed. They cannot be relied upon to fix the very system that they have broken.
Statement issued by Mike Moriarty MPL, DA Gauteng Finance Spokesperson, November 8 2012
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