City Power board expecting disassemblement
JOBURG — City Power board is expecting its destablishment, but will continue business as usual until then.
JOBURG — The City Power board will continue its fiducial responsibilities for the municipal-owned entity until reintegration reaches the establishing stage, chairperson Reverend Frank Chikane said.
The City of Johannesburg council decided that entities like City Power, Johannesburg Water, Metrobus etc will be reabsorbed into the administration’s control within the next 18 months, with minimal job losses.
Mayor Herman Mashaba said that the only people to lose their positions will be non-executive directors on boards, whose salaries totalled R18 million last year.
“Each of these entities has a board of directors to whom the managing directors or chief executive officers of these entities report. It is these boards that direct the activities and not the City. How can a City be responsible and accountable to its residents for fast-tracking service delivery when it does not have complete control over the entities that implement delivery?” Mashaba asked.
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Chikane said the City Power board was notified after the elections that this was the way the new coalition government wanted to go.
Since the board is appointed by shareholders and the entity’s majority shareholder is the City, the board was informed, rather than asked about the decision.
“As shareholders, they have the right to make that decision,” Chikane added.
The City asked the board to continue its work, until such time that the reintegration is acted upon.
Agreeing with the move, sociologist Dr Liela Groenewald previously said ratepayers can hope to see an improvement in service delivery if municipalities are directly accountable for these services.
“Municipal entities are often run as business entities and may operate on the principles of making a profit,” she said.
Groenewald added that when services are the work of a separate entity, voters lose some power to hold those who are responsible for service delivery, accountable.
Aslo read: Public transport under reintegration spotlight
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