Azra Hoosen | ah@radioislam.co.za
11 November 2024 | 14:00 CAT
2 min read

The City of Johannesburg is facing a potential power shutdown by Eskom due to escalating debt and financial mismanagement at City Power. Eskom’s decision to cut power has sparked concern and criticism from opposition parties, notably the Democratic Alliance (DA), which is calling for urgent intervention and an investigation into City Power’s financial management.

Eskom announced on 7 November that it would impose load-shedding in Johannesburg after City Power, the city’s electricity distributor, allowed its debt to Eskom to reach R6.3 billion. The DA in Johannesburg has expressed frustration with Mayor Dada Morero’s delayed action, citing a lack of urgency in addressing City Power’s financial crisis.

In an interview with Radio Islam, Cllr Belinda Kayser-Echeozonjoku, DA Johannesburg Caucus Leader, expressed hope that the city will do what is in the best interest of the people. However, she stressed that there are “serious concerns”.

“Eskom has indicated that they want a shut off, which could bring us back to load-shedding,” she said.

The DA has raised serious concerns about alleged mismanagement and political influence within City Power. They claim the municipal-owned entity has become a “haven for unchecked nepotism and cronyism,” resulting in financial instability and service failures that impact millions of residents and businesses across the city.

“There should be a discussion between the city of Joburg and Eskom to try and stop this and stop residents from feeling the pinch of experiencing load-shedding once again,” said Cllr Kayser-Echeozonjoku.

According to her, there’s an ongoing back-and-forth regarding City Power’s finances, with calls for greater transparency. While City Power claims it has been overbilled by Eskom, the priority should be for both sides to sit down and resolve the matter. Engaging mediators, such as the South African Local Government Association (SALGA), could help facilitate a fair resolution between these two entities and ensure accountability across both spheres of government. “We believe this can be stopped if they discuss how this can be repaid irrespective of which party was wrong,” she added.

Mayor Dada Morero is meeting with Minister Kgosientsho Ramokgopa today to address Johannesburg’s power crisis. Cllr Kayser-Echeozonjoku stated that the mayor must also tackle internal issues within City Power. “We wait to see what the outcome is of this engagement today,” she said.

The DA argues that Johannesburg’s residents, who diligently pay their utility bills, are unfairly burdened by load-shedding due to what they describe as governance failures.

Cllr Kayser-Echeozonjoku claims that it’s unclear where City Power’s finances truly stand, because in their quarter 4 report, they reported a deficit of R671 million, yet recent correspondence from group governance revealed a sweeping negative balance of R16 billion.

DA leaders warn against using taxpayer money to bail out municipalities that fail to manage their finances, urging large-scale intervention to prevent a potential collapse of Johannesburg’s services and infrastructure.

The DA has requested that the National Treasury and Auditor-General investigate alleged MFMA (Municipal Finance Management Act ) violations by City Power, specifically concerning unchecked employee-related costs and procurement issues.

Listen to the full interview with Ml Habib Bobat and Cllr Belinda Kayser-Echeozonjoku, here.