The City of Johannesburg has plans to reabsorb municipal entities into the City’s administration, according to the MMC for Finance, Dr Rabelani Dagada at an investor roadshow on 21 October.
These entities, such as City Power, Pikitup, Metrobus and Johannesburg Water, among others, are run as separate companies, but wholly owned by the City. Now, the administration plans to be more involved in running them.
“This was done to improve service delivery and reduce costs. A balance had to be struck to ensure that the entities’ boards did not wield too much power. At the same time as the government, the City needed to be involved in the running of these institutions,” he said. He said, however, that consultations were taking place, adding that the process would take time.
Both Dagada and the City of Johannesburg’s manager, Trevor Fowler, said the political transition after the municipal elections have gone smoothly, assuring the City’s investors. “Many people have invested in the City. They invest heavily in our brands.
“With a big change in government, there was fear the fundamentals might change. These fears had to be allayed. As the new administration, we need their support. We are happy with the response here.”
Referring to one of the points of Mayor Herman Mashaba’s 10-point plan, Dagada said the City intends to run a responsive and pro-poor government. He said the City can be pro-poor and business-friendly at the same time. “To this front, plans and policies are being aligned towards achieving a 5 per cent economic growth and creating a professional public service that serves Joburg residents with pride,” concluded Dagada.
The next investor roadshow is set for February next year.
