The City hailed its first unqualified audit in three years on 30 January and city officials were confident that the administration could efficiently transform Johannesburg into a “digital city” with citywide access to telecommunications, improved infrastructure and an integrated transport system in the next 10 years.
Speaking at the launch of Johannesburg’s Annual Report, MMC for Finance Geoff Makhubo said, “In the period under review we generated a healthy net surplus of R3.4 billion and our net assets position has improved by 13 percent to R30.4 billion.”
The surplus improves the city’s liquidity from R2.2 billion in the previous year to R5.4 billion.
Makhubo said the City planned to invest more than R100 billion in strategic infrastructure including broadband, roads, water and power over the next decade.
In 2013, Executive Mayor Parks Tau announced a 10-year R100 billion infrastructure upgrade programme.
According to Makhubo, the net surplus of R3.4 billion and private investment contributions will be used to fund strategic infrastructure development.
Some of these infrastructure investments include the roll out of over 900km of fibreoptic cable which will reduce the cost of telecommunications and increase access to information technology, along with a spatial strategy, such as the planned Corridors of Freedom.
The strategy aims to create mixed-use of commercial and residential development, allowing residents to live closer to public transport hubs and their areas of work.
However, the City must first resolve the challenges in its revenue collection systems, which have been a nightmare for residents and the City in the past few years.
Previous audit reports revealed that billing issues, incompatible billing data and uncollected revenue had dominated the auditor-general’s negative findings.
The City had, therefore, opted to install nearly 20 000 smart meters to remedy the situation.
Makhubo said the administration intended to improve its billing system and increase its rate of revenue collection from 92 percent at present to 97 percent by 2016.
