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Est 2009 Issue 6 - 2015 Tel : 011 023-7588 / 011 402 - 1977 Inner-City Gazette
12 - 19 February 2015 Fax: 086 609 8601
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Jozi on the right track
‘Despite this grim picture, the good news is that the City’s finances are healthier as shown by an unqualified audit issued for this financial year’ Staff Reporter news@inner-city-gazette.co.za
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City Manager Trevor Fowler
ith two consecutive unqualified audits, the City of Joburg’s financial performance continues to provide a solid base for investment in transforming society and changing the face of Johannesburg, according to City Manager Trevor Fowler. That was during the recent presentation of the 2013-2014 Annual Report before the Municipal Public Accounts Committee (MPAC) . Fowler said he was confident the City was on the right track, while acknowledging the challenges. He said as of June 30 2014, the total revenue collected stood at R39-billion while the total expenditure was R34.5billion. The City had collected 93.7% of the revenue billed. Four of the city’s entities; Johannesburg Social Housing Company, Johannesburg Fresh Produce Market, Joburg Theatre and Joburg Roads Agency, had received clean audits. Unemployment at 24.5% and youth joblessness at 31.5% were a cause for concern, he said. “The City is also winning the battle against HIV/Aids and efforts to combat crime are paying off. CCTV cameras have resulted in reduction of crime,
which has resulted in increased tourism. Access to services remains above 90% and the quality of drinking water remains of the highest possible standard at 99.8% of the approved standard,” he said. Fowler added that through projects like the Corridors of Freedom, Jozi@Work and Go Jozi, the future looked bright. He said 2012-2013 was the first year of the implementation of the R100-billion infrastructure investment programme, of which the creation of the Corridors of Freedom, is part. “Mixed housing developments have taken off and the smart city initiative will bring more internet connectivity. Green economy efforts are paying off as seen by installation of almost 20 000 solar geysers in several areas.” Sol Cowan, chairman of the Municipal Public Accounts Committee (MPAC), said though the audit report was a cause for concern, progress had been made in stabilising the City’s financial health. “Corruption is now being vigorously tackled, with almost 20 cases being investigated during the financial year under review. Once all the loopholes were closed, that problem would go away.” He added that accounting officers should pay more attention to tenders be-
low R200 000 and stick to requirements, and debt collection be strengthened. City of Joburg Audit Manager Floyd Rikhotso said the City lost over R15billion through non-metering of electricity and unauthorised consumption. It also lost over R815-million through water wastage and theft. “Despite this grim picture, the good news is that the City’s finances are healthier as shown by an unqualified audit issued for this financial year. Irregular expenditure remains a huge challenge. This year it amounted to over R215-million mainly due to non-compliance with the supply chain management guidelines. At least R386,9-million was lost in uncollected fines,” he said. The city spent R341,5 million in civil claims against the municipality and entities. Because of lack of skills and manpower, it might not be able to recover R15, 5 billion as a result. “Expenditure was incurred in excess of the limits of the amounts provided for in the votes of the approved budget, in contravention of Section 15 of the Municipality Financial Management Act. The total unforeseen and unavoidable expenditure incurred exceeded R15 million in contravention of the Municipal Budget and Reporting Regulation 72,” Rikhotso added.