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Speaker, today we are considering the City’s MFMA Section 71 In-Year Financial Report for the periods ending: 30 September 2025, 31 October 2025, 30 November 2025 and 31 December 2025. These are not political documents; they are a statutory instrument designed to give Council, and the public, a transparent view of our financial performance and the picture it presents is mixed.

On the surface, the City reflects a year-to-date surplus. However, a deeper reading of the report reveals structural pressures that demand careful oversight.

The City’s total debtor book now stands at approximately R71.9 billion, with the overwhelming majority older than 90 days. That level of arrears is not merely an accounting issue, it directly affects liquidity, cash flow, and our ability to fund operations sustainably.

Debt impairment continues to rise, and collection rates in key revenue streams are below target. We cannot build financial stability on projected income that is not being realised.

On the expenditure side, employee-related costs have increased significantly, driven in part by overtime. Bulk electricity purchases are above projections, and finance charges are rising. 

There are also concerning variances within certain municipal entities, including revenue underperformance and abnormal expenditure trends. These entities form part of our consolidated financial position, and they must be subjected to disciplined oversight.

Speaker, the purpose of an in-year report is early warning. It allows Council to identify emerging risks before they become fiscal crises.

The key risks emerging at this stage are clear:

•         Liquidity pressure driven by a growing arrears book

•         Rising operating costs

•         Increased reliance on penalties and enforcement-based revenue

•         Variances within municipal-owned entities

•         Slower-than-ideal capital spending performance

The City of Johannesburg is not in collapse. But we are financially stretched. And stretched institutions require discipline, not complacency.

This report must not simply be noted. It must inform corrective action.

Financial governance is not about reacting to crises, it is about preventing them.

Issued by GOOD National Chairperson & City of Johannesburg Councillor Matthew Cook