City of Johannesburg fails to adopt a budget after cancelling their Virtual Budget Council Meeting for the second time.
Council Speaker Nonceba Molwele confirmed that the largest municipality in the country failed to meet the 30 June deadline to adopt approved budgets. The now twice cancelled Virtual Budget Council Meeting was supposed to provide the City the platform to meet and consider the 2020/2021 Draft Integrated Development Plan, medium-term budget, property rates policy and by-laws of the City.
Molwele has since then issued a Notice of Cancellation based on legal advice as by law, the Executive Mayor Geoffrey Makhubo is obliged to inform the provincial MEC of Cooperative Governance and Traditional Affairs (Cogta) Lebogang Maile, and the Gauteng Executive of the failure of Council to approve a budget before the commencement of the new financial year. Joburg’s 2019/2020 fiscal cycle ended on 30 June, and the municipality is mandated by Section 24(2) of the Local Government: Municipal Finance Management Act (MFMA) 2003 (Act 56 of 2003) to adopt an approved budget by the first day of the subsequent month.
Molwele explained, “The City will await the directive and guidance of the Provincial Executive Council before convening any Council meeting for the consideration and adoption of the 2020/21 budget, Draft Integrated Development Plan (IDP) and other tariffs and matters which ought to have been considered by Council.” Makhubo has requested the provincial executive to intervene through appropriate measures in terms of Section 139(4) of the South African Constitution. The meeting was originally scheduled to take place on 30 June but was postponed to 2 July due to a request by the City’s Executive Mayor Geoffery Makhubo.
A statement released by the Office of the Mayor read, “The Executive Mayor’s request is based on a need for the political parties in Council to further consult, a process largely hindered by the current Covid-19 pandemic.” The meeting was cancelled a few hours before it was supposed to be held.
Mowele added, “I am mindful of the concerns that the current state has caused and would like to assure everyone that everything is being done within the ambit of the law to address the situation.”
