Joburg flags financial risk, but claims ‘accurate’ bills
Lawyers, auditors and a think tank say Joburg’s billing is broken and its finances are at risk – yet the city claims 98% accuracy.
Johannesburg's municipal billing system has been plagued by a series of errors, despite the city's claims of a 98% accuracy rate. Former homeowners are receiving monthly bills long after they have sold their properties, sometimes accompanied by threats of disconnection. Former homeowners across Johannesburg, which accounts for 16% of South Africa's GDP, are being exposed to financial risk due to these post-transfer billing errors, a pattern that has become increasingly common.
The Auditor-General has flagged that 76% of money owed to the city is unlikely to be recovered, while a think tank warns that the city is spending money it doesn't have. The city's own documents warn that revenue is being eroded through billing system failures, which threaten its financial stability. The city's Integrated Development Plan for 2026/27 notes that its revenue base has been eroded by factors such as billing system failures.
The city's Executive Deputy Mayor and Finance MEC, Loyiso Masuku, acknowledged the pressure on the city's revenue base, with its collection rate falling to 86% from 88.6%, partly due to billing inefficiencies and revenue leakages. The city's medium-term budget projects a R2.1 billion operating surplus for the current year, despite ongoing threats to financial sustainability.
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