Today, 30 January 2019, the City of Johannesburg tabled its Integrated Annual Report for the 2017/18 financial year, which includes the findings from the Auditor General (AG).
Since coming into office, our administration has focused on ensuring that our budgeting process supports those priorities which speak to communities’ most urgent needs through investment in our infrastructure, basic free services and our economy.
In the year under review, the City achieved an unqualified audit opinion with material findings, as it has for the past years reviewed. Despite the many challenges faced, the AG has found that the City remains in a position to meet its financial obligations, which will allow for continued service delivery to our residents.
Indeed, the AG’s report to the City states: “The annual financial statements indicate a solvent position, highlighted by a net current asset position. This is an improvement from the prior year.”
Further, the AG notes that there was an improvement on the City’s working capital position, as well as cash flow from operating activities, which are both positive at year-end compared to the prior year’s negative position.
The City will continue in its concerted efforts to manage our cash flow and generate cash backed surpluses to fund future capital expenditure. In addition, the AG’s assessment indicated that on average, the City takes 32 days to pay its suppliers. This is an improvement from the prior year’s 48 days (restated), however, the days in which the invoice remains outstanding are still outside the prescribed period of 30 days. This is an aspect we will continue to work towards making improvements on.
The City recorded a surplus of R 1 375 882 000 as compared to R1 070 611 000 prior.
Though the AG noted that our senior management vacancy rate remains high, I remain confident that this is an area we will continue to improve on. The City has subsequently filled the critical positions of Chief Technology Officer, Chief Operations Officer and Group Chief Financial Officer.
Joburg Water
• The entity managed to replace 45.4 kilometres of sewer pipes against a target of 33.5 kilometres, translating to 135.5% over-achievement;
• In providing services to informal settlements, an additional 620 informal dwellings were provided with access to basic sanitation;
• During 2017/18, an average of 1.55 billion litres of water, complying with acceptable drinking water standards (SANS 241), was distributed to the households within the city on a daily basis. This is an increase of 2.5% in the daily volume compared to the 2016/17 financial year;
• The percentage compliance with drinking water quality standard (SANS 241) on E-Coli was 99.9% against a target of 99%. This positive achievement will enable the City of Johannesburg to retain its Blue Drop Status.
City Power
• In 2017/18 the entity installed 1 374 public lights against a target of 1000; and
• City Power electrified 2 167 units in informal settlement compared to a target of 810.
Joshco
• In 2017/18, Joshco delivered 1 159 housing units.
Johannesburg Roads Agency
• Approximately 301,12 km of roads were resurfaced against an annual target of 250 km, across the City;
• A total capex budget of R162 million was spent on road resurfacing Citywide; and
• JRA’s capex implementation programme created a cumulative total of 1 494 jobs against an annual target of 1 250 by employing 89 local emerging contractors.
Despite improvements within the City, there is no denying that much work still needs to be done to address the backlog of our historic challenges.
One of these relates to the accumulation of Unauthorised, Irregular, Fruitless and Wasteful expenditure.
Within the current reporting period, a total of 869 investigations relating to allegations of financial misconduct, fraud or improper conduct in Supply Chain Management were on-going.
Our multiparty government has demonstrated the political will to address wrongdoing, and ensure consequences are meted out to those responsible. Under the capable leadership of General Shadrack Sibiya, our Group Forensic and Investigation Services (GFIS) has already uncovered an estimated R24 billion in corruption and maladministration, with over 4000 cases requiring attention.
I have endeavored to discuss the further capacitation of GFIS and our internal controls so as to address challenges in resolving cases related to Unauthorised, Irregular, Fruitless and Wasteful expenditure.
This includes improving internal controls for preventing, in particular, irregular expenditure, noting an increase in the current year of 27% as opposed to the 300% accrued in the 2016/17 financial year. In the face of our many historic challenges, we will continue to drive efforts to reverse these challenges through progressively establishing governance structures within the City.
Cllr Herman Mashaba
Executive Mayor
City of Joburg
Media Enquiries:
Luyanda Mfeka
Director of Communications
Office of the Executive Mayor
Cell: 076 171 5978
Email: luyandam@joburg.org.za
