How City Power’s revenue-collection failings crimp Joburg
Debtors book is being dipped into to plug gaps from lower revenue by underperforming utility, says metro finance chief Dagada
Johannesburg has been forced to rely more on its debtors book, as City Power was collecting too little revenue, says mayoral committee member for finance Rabelani Dagada. He told the metro’s finance committee on Thursday he was unhappy with the performance of the municipal-owned entities, especially City Power. The entity used to be the metro’s cash cow, but its finances no longer looked good. "The city is living off its debtors book because City Power is not performing well," Dagada said. This means City Power is not collecting sufficient revenue, and more money has to be allocated from the city’s debtors book to make ends meet. City Power contributes about 40% of Johannesburg revenue. Dagada said mayor Herman Mashaba had appointed a task team to look into the utility’s woes. Audit firm KPMG had been commissioned to investigate the root cause of the problems at City Power. Among other aspects, the teams would look at how much was spent on bulk purchases, and the returns that accrue...
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