Finance MMC Dada Morero says the move by households and businesses to alternative sources of power will put the city’s finances under strain
Johannesburg finance member of the mayoral committee Dada Morero says the budget to be tabled by May could be lower than in previous years. PHOTO: ANTONIO MUCHAVE
Joburg finance MMC Dada Morero told Business Day that load-shedding had cost the metro much-needed revenue as some residents and businesses were migrating to alternative sources of energy to lessen the effect of Eskom’s daily power blackouts, which can often last up to 10 hours a day. Morero’s comments come as revenue collection in the city fell 86% in October, translating into more than R500m of undercollection. The council’s budget for the 2022/2023 financial year stands at R77.3bn.
Morero revealed that the budget, to be tabled by May, could be lower than in previous years. The budget has been increasing over the years, with an allocation of R68.1bn for 2020/2021, R73.3bn for 2021/ 2022, and R77.3bn for the 2022/ 2023 financial year. The City of Johannesburg, which was under the administration of a DA-led multiparty coalition after the 2021 municipal elections, has been battling a cash flow crisis, which could lead to a failure to pay service providers or salaries for its 32,000-strong workforce or to honour its service delivery obligations to its residents.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Move away from Eskom threatens Joburg revenue streamFinance MMC Dada Morero says the move by households and businesses to alternative sources of power will put the city’s finances under strain
Read more »
Crumbling city bridges overwhelm JRA's budgetJoburg bridges are falling apart with at least 90% found to be in a poor condition.
Read more »
Crumbling city bridges overwhelm JRA's budgetCrumbling city bridges overwhelm JRA's budget: Joburg bridges are falling apart with at least 90% found to be in a poor condition.
Read more »
City Power sets aside R9m to replace Joburg's electricity infrastructureOne of the utility's solutions is to replace the underground electricity network with overhead lines.
Read more »
Courthouse power cuts delay alleged Joburg business hijacker’s bail bidNearly three days of power cuts at the Alexandra magistrate’s court have forced the bail application of Pakistani national Hafiz Saddiq to be postponed.
Read more »
PERSONAL FINANCE: Four ways to fund your solar power solutionThe government’s recent announcement of a solar power tax incentive, coupled with the fact that rolling blackouts are unlikely to end any time soon, is set to propel solar power sales. However, these solutions are by no means cheap.
Read more »