04/06/2025
*Crisis in Johannesburg*
*What We Have Done as the Democratic Alliance*
*City Power’s R16.3 Billion Debt*
Dear Residents,
There is no getting around it: City Power is in a deep financial crisis. With a debt load now estimated at R16.3 billion and billions in irregular expenditure confirmed by the Auditor-General, residents rightly ask: What is being done?
I want to lay out clearly what the *Democratic Alliance (DA)* nationally, provincially, and in Council has already done to expose this crisis and push for action:
*What the DA Has Done So Far*
*1. Formal Request for National Intervention*
We requested that the National Treasury and the Auditor-General investigate City Power’s financial collapse and irregular spending immediately.
🚨 Corruption and greed are standing in the way of service delivery in the City of Johannesburg. Joburg residents need an honest and capable government that will prioritise the city’s needs over anything.
Read more here: https://dagauteng.org.za/2025/06/da-to-submit-formal-complaint-over-r1-billion-joburg-tender-grift
• https://dagauteng.org.za/2024/11/da-asks-national-treasury-and-ag-to-investigate-city-powers-r16-billion-self-made-collapse
• https://radioislam.org.za/a/da-calls-for-treasury-and-auditor-general-to-investigate-city-powers-r16-billion-financial-crisis
*2. PAIA Applications Ignored*
We submitted Promotion of Access to Information Act (PAIA) requests over a year ago to obtain City Power’s detailed financial records. To this day, the City has not responded.
• https://www.power987.co.za/featured/da-calls-for-an-investigation-into-city-powers-r16-billion-self-made-collapse/
*3. Auditor-General Confirms R4.9 Billion in Irregular Expenditure*
The AG found that City Power had failed to take reasonable steps to prevent nearly R5 billion in irregular spending, including through dodgy procurement.
• https://www.ewn.co.za/2025/03/17/city-power-did-not-take-reasonable-steps-to-avoid-nearly-r5bn-irregular-expenditure-ag
*4. City Power Admits to Fraud Losses*
Millions have already been lost due to confirmed fraud by internal staff and contractors. The DA exposed this publicly and demanded action.
• https://www.ewn.co.za/2025/03/20/city-power-says-it-lost-millions-due-to-fraud-at-hands-of-staffers-contractors
*5. Caucus Oversight Through Council*
Cllr Belinda Kayser-Echeozonjoku, DA Johannesburg Caucus Leader, has consistently raised this issue through formal Council questions, statements, and oversight requests.
*6. DA court cases against the city*
https://www.timeslive.co.za/politics/2025-01-02-court-declares-city-of-joburgs-vip-protection-decision-for-mayor-invalid/
https://www.news24.com/southafrica/news/high-court-orders-floyd-brinks-removal-as-joburg-city-manager-20241204
*7.Criminal Cases Opened*
https://www.ewn.co.za/2025/04/30/da-opens-criminal-case-against-city-of-joburgs-acting-coo
https://iol.co.za/news/politics/2025-05-07-da-lays-culpable-homicide-charges-against-jpc-ceo-helen-botes-over-deadly-usindiso-fire/
*8. Budget Rejection and Alternative Proposals*
Cllr Chris Santana, our Shadow MMC for Finance, led the rejection of the 2025/26 City budget, calling it irresponsible and unsustainable. He proposed:
• A 0% property rate increase
• A cap on municipal salary increases (4.6%)
• https://dagauteng.org.za/2025/05/da-in-johannesburg-rejects-citys-political-campaign-budget
• https://www.iol.co.za/news/south-africa/gauteng/johannesburgs-r894bn-budget-faces-fierce-opposition-from-councillors-ec4f3154-04f5-4b7c-ae65-22a2c9a5dfb3
• *Escalate Political Consequences* – We have submitted motions of no confidence in Mayor and Speaker, Awaiting programming outcomes, whether the administration will try to block it or not, we are already exploring our options.
• *Continue to Engage You* – As your councillor, I will continue reporting back, publicly posting all oversight steps and outcomes.
You pay your bill, log outages, report faults, and do your part.
Now, we will continue doing ours, and we won’t stop until there are real consequences for the service delivery crisis in Johannesburg
Regards🌿
Cllr Florence Roberts
