MyZA

News, Directory, Events and Other Stuff

You are here: Home / News / National Treasury and AG Must Investigate City Power’s R16 Billion Self-Made Collapse

National Treasury and AG Must Investigate City Power’s R16 Billion Self-Made Collapse

Dear Editor

As the City of Johannesburg faces an unprecedented power shut-off by Eskom, the Democratic Alliance (DA) in Johannesburg is extremely concerned by the slow action of Mayor Dada Morero, and lack of commitment to repay Eskom or fix City Power’s finances.

The statement by the Executive Mayor of the City of Johannesburg, regarding his planned meeting with Minister of Electricity, Kgosientsho Ramokgopa, appears to be delaying the Eskom shut-off, rather than addressing the massive debt crisis at the root of the breakdown of relations with Eskom.

City Power currently has an overdraft facility of R16.255 billion as of 30 September. This is an enormous financial liability – and it is completely out of line with the amount of R671 million overdraft that City Power reported in their fourth quarter report.

Allegedly, a large portion of this financial hole can be attributed to salaries and employee related costs that were not budgeted for.

Apart from addressing this extremely concerning financial situation and debt to Eskom, the meeting the Mayor has with the Minister must also be held with the goal of achieving accountability and transparency for City Power’s dire financial situation.

To tackle what we see as serious violations of the Municipal Finance Management Act (MFMA) taking place at City Power, the DA has been pursuing facts of what is really going on, through a Promotion of Access to Information Act (PAIA) application – which has been ignored for a year.

The DA has now written to National Treasury and the Auditor General to request an investigation into violations of the MFMA taking place at City Power. City Power will have no choice but to account to these arms of National Government.

Residents and business in Johannesburg cannot be made to pay the price for City Power’s mismanagement any longer.

The Democratic Alliance will continue to fight for residents to ensure accountability for any wrongdoing by officials and politicians.

Regards

Cllr Belinda Kayser-Echeozonjoku
DA Johannesburg Caucus Leader

Category: Tag: ,

If you feel strongly about this article then feel free to send MyZA a ‘Letter to the Editor’ using the submission form below:

Letter to the Editor

This field is for validation purposes and should be left unchanged.
If this is in response to an article please include that article title here or as the lead in for the first paragraph of your Letter below.

Separate tags with commas

Localise your letter by naming the city your words are about. Add relevant words describing your subject. Single comma separated words of no more than 5
Your Name(Required)
Your Name will be linked to the website below.
Your personal, business or social media web site
Choose NO to not set up a user account on MyZA. User Accounts will allow you to submit letters under your own Author Name

3 Latest Letters to the Editor:

  • Thoughts on Lotto Winner News

    Dear Editor This is fantastic news for the community of Gqeberha. It is always heartwarming to hear about such life-changing positive outcomes for everyday people. Congratulations to the lucky winner! Regards Buhle Ngcobo In Response to/From: R8.5 Million Lotto Winner Claims Prize in Gqeberha

  • Inquiry Regarding SASSA Card Replacement

    Dear Editor I am a social grant recipient and need guidance on swapping my SASSA Gold Card for the Postbank Black Card. Please assist. Regards Buhle Ngcobo In Response to/From: Minister Tolashe assures smooth transition to Postbank Black Cards for grant beneficiaries Swapping your SASSA Gold Card for the new Postbank Black Card is a…

  • Congratulations to the Lotto Winner

    Dear Editor Dear Editor, I was thrilled to hear about the R8.5 million Lotto win for the community of Gqeberha. Such life-changing news brings hope and excitement to everyone in the area. I congratulate the winner and wish them all the best with their prize. May this bring positive change to their life and the…

Reader Interactions

Comments

  1. A buddy in Cape Town saw some dude cat calling a coloured woman with that kst kst kst sound, so she turns around and says \”What? You got a puncture in your face or something??\”

  2. Fun South African Fact: South Africa is home to the oldest meteor scar in the world – the Vredefort Dome in a town called Parys. The site is a UNESCO World Heritage Site.