The Johannesburg Metro’s 2023/24 financial report paints a sombre picture. The Metro does not even have enough money to finance its own capital projects or settle debt.
The report, which was tabled to the Council on Wednesday, indicates that the Metro concluded its year with a loss of R277 million.
Its cash reserves are depleted and outstanding short-term debt skyrocketed from R17 billion in June 2023 to R23 billion on 30 June 2024. This includes Eskom debt of R6 billion.
The Metro wrote off R8,7 billion in bad debt and a further R7,83 million was lost due to power and water losses. It adds up to a staggering total of R16,53 billion, which is unsustainable.
The Freedom Front Plus (VF Plus) highlighted these two issues as key to turning the Metro’s finances around.
The party also advised the Mayoral Committee Member for Finance, Margaret Arnolds, not to announce any tariff hikes for the 2025/26 financial year, because taxpayers simply cannot afford it.
Unfortunately, Rand Water and Eskom’s increases โ reportedly 13,9% and 12,51%, respectively โ will still impact consumers and need to be communicated.
The Freedom Front Plus will use its voice in the Metro’s council chambers to ensure that tax money is not squandered and taxpayers are not burdened with exorbitant tariff hikes.
