Parliamentary Standing Committee on Appropriations chairperson Mmusi Maimane has called for the urgent strengthening of municipal capacity as he expressed concerns over reports of the deteriorating financial position of the City of Johannesburg.

The embattled municipality’s finances are undermining its mandate to deliver essential services and financial stability.

A recent news report indicated that City Power’s R16.3-billion negative bank balance has jeopardised the municipality’s ability to deliver services and remain financially sustainable.

It further pointed out that the most significant cause of City Power’s financial failures is its “inadequate” revenue collection, which the report marked as a R3.9-billion shortfall.

Maimane said this must be addressed as a matter of national urgency, noting that South Africans cannot be expected to continue paying rates and taxes while receiving little to no return in basic services.

He said given the level of appropriations directed to municipalities, the financial and operational collapse of key metros was unacceptable.

“Municipalities are the engine rooms of basic service delivery for communities. They are under-capacitated, mismanaged, and continue to bleed public funds through wasteful expenditure,” he said.

He explained that proper revenue systems were critical for sustainability.

“…it is worrying that local governments, including Johannesburg, lack basic billing infrastructure. This suggests a shortage of the right personnel and institutional capacity to manage these functions effectively,” he said.

The Standing Committee on Appropriations has already summoned the City of Johannesburg and Mangaung metropolitan municipality to appear before it as they will be receiving their allocations through the 2025 Appropriation Bill.