Tough times threat to City of Joburg

A slumping economy is putting the finances of City of Johannesburg residents in a precarious situation.

A mid-year assessment of Johannesburg by National Treasury between July and December last year reveals a less than satisfactory economic performance by South Africa's economic heartland, which is leaving residents with increasingly less money to pay their bills.

The result is that entities such as City Power and Johannesburg Water are being forced to revise downwards expected revenue from customers.

"Reduced disposable household income has impacted on commercial clients' ability to service their municipal debts, as well as households not being able to pay for services they receive," the report revealed.

"Debt impairment was over budget by 52% due to a reduction in payment levels by City Power and Johannesburg Water. The city budgeted R1.9-billion for debt impairment. However, the outcome was R2.9-billion, which represents 152% of the adjusted budget," the report added.