Joburg residents are facing renewed load-shedding due to a massive R6.3 billion debt owed by the city’s power utility, City Power, to Eskom. The power cuts, which Eskom announced on 7 November, are a result of City Power’s failure to pay its Eskom account, plunging Johannesburg into a crisis that could have been avoided.
The Democratic Alliance (DA) has strongly condemned what they call a “systemic capture” and mismanagement at City Power. According to the opposition party, this mismanagement, attributed to the ANC-EFF-ActionSA-PA coalition, has led the city to the brink of a massive power interruption that will affect residents and businesses alike. The DA claims that ordinary residents, who have been diligent in paying their electricity bills, will be unfairly punished as a result of the administration’s failures.
City Power, a municipality-owned entity, is at the centre of the crisis, with critics pointing fingers at Johannesburg’s Executive Mayor, Dada Morero. Morero, who also previously served as the MMC for Finance, is accused of allowing City Power to descend into a state of mismanagement, nepotism, and cronyism. The DA has continuously called for accountability, asserting that the city’s power supply has been hindered by poor oversight and weak governance.
A report submitted by the DA on 9 November 2023 under the Promotion of Access to Information Act (PAIA) requested information on contractors, employees, and appointments within City Power. However, the DA has received little more than an acknowledgment of the request, with no substantive response, raising concerns of a deliberate withholding of information.
Whistle-blowers have further added fuel to the fire, providing evidence that City Power’s recruitment policy has been manipulated to favour the hiring of relatives and associates of senior management, in violation of hiring regulations. The DA has formally called for an investigation into these allegations, urging the Special Investigating Unit (SIU) to take action.
In addition to the mounting debt, City Power has reportedly breached the Municipal Systems Act by appointing senior managers without following proper advertising procedures, limiting the acquisition of technical expertise necessary to maintain Johannesburg’s electricity infrastructure. Furthermore, reports indicate that City Power’s budget for employee-related costs has exceeded its allocation by a staggering R82 million. The entity is also facing a maintenance backlog of R40 billion, which severely hampers its ability to deliver essential services.
The DA insists that these failures cannot be solved by bailing out failing municipalities with taxpayer money. Instead, they call for large-scale intervention, including investigations by the National Treasury and the Auditor-General into City Power’s alleged violations of the Municipal Finance Management Act (MFMA).
Without substantial action, the DA warns that Johannesburg could face total collapse unless strong measures are taken to hold City Power’s management accountable.
Comments