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City of Joburg’s Financial Troubles and Corruption Probed in Parliament
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The City of Johannesburg’s financial mismanagement and alleged corruption came under scrutiny in Parliament as the Standing Committee on Public Accounts (Scopa) received reports from the Auditor-General and the Special Investigating Unit (SIU).
In an eight-hour briefing, Dumisani Cebekhulu, business unit leader for the Auditor-General’s office in Gauteng, expressed concern over the city’s stagnant audit outcomes and lack of improvement in financial management.
“The City of Joburg’s audit outcomes are regressing. We are not seeing significant improvements in the audit process,” he said.
He noted ongoing financial struggles, including:
- Poor revenue collection from major entities such as Joburg Water and City Power
- Insufficient infrastructure investment, affecting service delivery
- Rising irregular expenditure, which increased from R8.8 billion in 2019/2020 to R11.1 billion in 2022/2023
Of the R11.1 billion in irregular expenditure, R4.2 billion was written off, while the remaining R7.7 billion remains unresolved. No funds have been recovered or condoned.
The City of Johannesburg metro and its major entities, including Pikitup, Joburg Water, City Power, and Johannesburg Roads Agency (JRA), all received unqualified audit opinions with findings.
Only Joburg Market and Joburg Theatre received clean audit reports for the 2022/2023 financial year.
The Auditor-General’s office recommended that the metro strengthen internal controls and review its service delivery model to improve financial efficiency and governance.
The Special Investigating Unit (SIU), led by Gauteng head Sagren Reddy, presented its findings on procurement irregularities in firefighting equipment, CCTV installations, and vehicle purchases.
Key Findings from SIU’s Investigation
- Firefighting Equipment: A R9.1 million contract for 29 fire engines awarded to Fire Raiders was found to have procurement irregularities.
- CCTV Installation: The R10.6 million project for Johannesburg’s Emergency Management Services (EMS) and JMPD revealed duplicate payments worth nearly R600,000, which must be recovered.
- Fire Station Maintenance: No irregularities were found in a R3 million contract for repairs at the Midrand Fire Station.
Reddy confirmed that no direct corruption allegations were proven, but the SIU tracked fund movements to ensure transparency.
The reports highlight Johannesburg’s serious financial mismanagement, poor service delivery, and irregular spending, raising concerns about governance and accountability.
With rising debt collection issues and infrastructure neglect, the city’s financial recovery remains uncertain. The ongoing investigations could determine whether corrective action will be taken to address systemic failures within Johannesburg’s administration.
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