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Adjustment Budget Prioritises Internal Costs Over Crumbling Infrastructure

Speaker, the adjustment operating budget before Council today raises several serious concerns about the financial direction of the City of Johannesburg.

The post JOHANNESBURG’S ADJUSTMENT BUDGET PRIORITISES INTERNAL COSTS OVER CRUMBLING INFRASTRUCTURE appeared first on For Good.

GOOD Speech by Matthew Cook, GOOD National Chairperson and PR Councillor in the City of Johannesburg:

Speaker, the adjustment operating budget before Council today raises several serious concerns about the financial direction of the City of Johannesburg.

Before I address the numbers, I want to raise a matter of process. The Section 79 Finance Committee met earlier this week, yet this adjustment budget was not presented to the committee, despite already having been submitted to the Mayoral Committee.

That raises an important question. What is the role of the Finance Committee if key financial decisions are moving forward without proper oversight and engagement?

Committees exist to strengthen governance and ensure that Council is fully informed before major decisions are taken.

Speaker, Turning to the substance of the report.

The adjustment budget shows employee-related costs increasing by R1.35 billion, while spending on contracted services is being reduced by more than R1 billion.

Those contracted services are not abstract numbers. They represent maintenance, repairs, and the practical work required to keep this city functioning.

The report itself admits that operational funds are being shifted away from service delivery towards employee costs. That should concern every councillor in this chamber.

The report also increases the City’s debt impairment provision by over R1.1 billion. In simple terms, this means the City now expects significantly more revenue to go uncollected. That points to deep and ongoing problems in our revenue management and billing systems.

Speaker, The City’s operating surplus has declined by almost R1 billion in this adjustment, even more concerning is the warning contained in the report that the City may struggle to pay its creditors on time.

Finally, the report does not yet incorporate the R979 million reduction in the City’s equitable share allocation from the National Treasury. When that is accounted for, the City’s financial position will become even more constrained.

Speaker, Johannesburg residents are already experiencing deteriorating infrastructure, unreliable services, and slow repairs, and we as councillors must ask a fundamental question: Are we prioritising spending in a way that protects service delivery and the long-term financial stability of the City?

Financial sustainability requires transparency, disciplined budgeting, and strong oversight. Council must ensure that the City’s finances are managed in a way that protects services and builds confidence among residents and businesses.

 

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