OUR CITY NEWS: Pikitup in deep financial distress as trucks, staff and money run short

Johannesburg's waste management entity, Pikitup, is facing severe financial difficulties due to ageing infrastructure, staff shortages, and unpaid bills. The city's primary waste service provider, which manages 12 depots and multiple landfill sites, has spent an alarming R800 million on rentals this year alone, far exceeding its budget.

The entity, which serves over 900,000 households and communities, is experiencing a 56% vacancy rate, with critical personnel shortages in management and unskilled roles. Additionally, fuel costs have skyrocketed to R47 million year-to-date, surpassing the allocated budget of R36 million. Pikitup projects are also delayed due to non-payment, and landfill capacity is nearly full.

The city has yet to allocate funds for interventions to extend landfill lifecycles, and there's no money for air quality monitoring surveys. Furthermore, the entity owes R61 million to seven state hospitals, and it has spent R92 million of its approved R309 million capital expenditure budget without completing any projects. Despite improved workshop efficiency, many vehicles are too old or damaged to repair, and refueling of active fleet units is a challenge due to payment issues.

The city has implemented a maximum 15-hour overtime limit for staff, but this has not significantly reduced costs. Overtime expenses are 24.2% over budget, and salary costs are also over budget due to politically facilitated increases.