The FF Plus did not support the Johannesburg Metro’s 2023/24 adjustment budget, consequently, the Council could not adopt it due to a lack of votes.
The party made it very clear that the proposed adjustment budget does not accurately reflect the dire financial situation in which the Metro finds itself.
The adjustment budget proposes that the budgeted surplus, before capital allowances and contributions, should be reduced from R2 billion to R1,1 billion.
The actual figures for the past six months, up to 31 December 2023, show a loss of R563 million. There is no indication that the budgeted figures will realise.
The budgeted revenue from electricity was adjusted downwards by R3,9 billion from R23 billion to R19,1 billion. Load shedding was put forth as a reason for the reduction along with consumers making use of alternative power sources.
The budgeted revenue from fines was also adjusted downwards from R952 million to R161 million. The main reason for this is the Post Office’s failure to deliver notices of fines.
With regard to expenses, the amount earmarked for procuring electricity from Eskom was reduced from a budgeted R16,4 billion to R13,6 billion; which is a reduction of R2,7 billion. This downward adjustment is totally unrealistic.
The loss expected to be incurred due to bad debt was adjusted downwards by R771 million to R7,2 billion. This is also totally unrealistic seeing as the collection rate, particularly for water, is a mere 71,9%.
The ANC government of the Johannesburg Metro has its head in the sand and is refusing to acknowledge the dire situation in which the Metro currently finds itself.
The FF Plus demands that the Metro should table a more realistic adjustment budget to the Council for adoption.
;
