Makhubo: ‘Time for milk and honey is gone’
Johannesburg Mayor Geoff Makhubo has warned that “the time of milk and honey is gone” as the city attempts to turn around its finances around.
“The time for milk and honey are gone but we are not belt tightening as yet. What we are doing is managing the surpluses,” he said.
Makhubo gave an update on the service delivery issues facing the city at a media briefing in Braamfontein on Wednesday.
He said the blame for the city’s precarious financial position can be laid at the door of City Power.
“City Power is reducing its revenue budget by R720 million, but not reducing bulk purchases.
“They are operating on an overdraft of R3 billion which is money that must be sourced from somewhere. They are collecting R2 billion less, so we don’t have the necessary liquidity to do what we want to do,” he warned.
Makhubo said despite the city’s financial crisis, the African National Congress (ANC) will continue to spend money in a way that that benefits poor residents.
“We are just making difficult choices and trade-offs. We are managing the margins of what we are taking to next year and trying to mitigate cash flows and revenues into the other year. Spending will be done in a way that benefits the poor,” he added.
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