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The Citizen
6 days ago
- Politics
- The Citizen
The honeymoon is over: ANC and ActionSA's marriage turns 'toxic'
Morero is accused of not consulting his coalition partners on the budget and on his state of the city address. Just a few months after ActionSA helped ANC regional chairperson Dada Morero become the mayor of Johannesburg, the party has described its relationship with Morero as 'toxic'. This comes after Morero allegedly ignored ActionSA's concerns over the 2025/2026 budget, despite ActionSA being considered a coalition partner in the governing of Johannesburg. Morero is accused of lobbying smaller parties to vote in favour of a controversial R89 billion budget that has been described as anti-poor and flawed. Speaking to The Citizen on Friday, Mashaba said the passing of the budget is a sign that Morero no longer needs support from ActionSA. 'He has shown us that he does not need us but we will not become voting cows to serve his agenda,' he said. Mashaba said he had complained to the ANC provincial task team about Morero's questionable leadership in Johannesburg. This includes the appointments of tainted individuals to powerful positions and unethical behaviour. 'He is failing the residents of Johannesburg; he does not appoint people on the basis of merit. For him to tell me that he appointed the MMC of finance because he wants to control her is shocking. 'I have made the ANC aware of these things and they are also concerned,' he said. Motion of no confidence Mashaba said ActionSA had not decided which way it would vote when Morero faces a motion of no confidence vote next month. 'We will take the next step as it comes. He does not need our vote, it is clear that he has his partners that will protect him,' he said. The DA and the African Democratic Christian Party (ACDP) have already indicated that they will vote in favour of the motion. Will ActionSA take the opposition benches? Meanwhile, Mashaba said even though ActionSA occupies the speaker position in the legislature, the party will not support questionable decisions by the mayor just to keep the position. 'We did not beg or ask anyone to give us the speaker position. If they decide that they do not want us, that decision is not ours. 'They are the ones who approached us to give us the position. If they gave us the position to soften us to become voting cattle, then they made a big mistake,' he said. Mashaba said ActionSA will continue to use its position in the legislature to hold Morero's administration accountable. 'We will hold them accountable officially as long as we run the legislature,' he said. Local government elections He said the party still hopes to boot the ANC out of power in the upcoming local government elections next year. 'What we need to work on is to ensure that residents of Johannesburg vote ActionSA into power and remove the ANC. 'Residents cannot keep empowering the ANC, we have demonstrated that where we govern, we always act in the best interests of our residents,' he said. Mashaba said it is unlikely that the ANC would remove ActionSA from the legislature, as negotiations for that position had taken place at the provincial level. ALSO READ: Joburg's new city manager? Botes is a bad choice, says DA Mashaba's soft spot for Joburg The Citizen sent questions to the ANC in Johannesburg and Morero spokesperson Chris Vondo about tensions with ActionSA. There had been no response at the time this article was published. Meanwhile, Ntsikelelo Breakfast a political analyst from Nelson Mandela University (NMU) told The Citizen that Mashaba had leaned towards a relationship with the ANC despite challenges along the way to avoid working with the DA. 'One could say ActionSA is stuck between a rock and a hard place. The reason that this party was started wa because of the discontent that Mashaba had with the DA. 'So instead of Mashaba gravitating to a party that made him have a broken heart I think he chose to work with the ANC which was a surprise because ActionSA has always said they will never work with the ANC because the ANC is corrupt,' he said. Breakfast said it is clear that Mashaba has a soft spot for Johannesburg because he had been mayor before and perhaps wanted to preserve his legacy. NOW READ: How Joburg plans to spend R89 billion
The Citizen
6 days ago
- Business
- The Citizen
Joburg budget hanging by a thread: ANC fights to get their way as partners gun for them
All eyes will be on Thursday's budget debate and vote Johannesburg City Council meeting at the Connie Bapela House in Braamfontein. Picture: Neil McCartney / The Citizen Coalition partners in the City of Johannesburg have expressed outrage at the latest budget, putting it at risk of not being passed in council. Finance MMC Margaret Arnolds on Wednesday presented the City's R89 billion plan to boost service delivery and increase revenue collection. The presentation contained proposals for increase in tariffs for water and wastewater, electricity, and property rates, among other charges. The City also maintained a R200 surcharge that remains a thorny issue among coalition partners. ActionSA leader Herman Mashaba said one of the reasons his party supported mayor Dada Morero was that the ANC had agreed to scrap the burdensome surcharge. He claimed he was told it would not be in the latest budget, only to be surprised by its inclusion this week. 'This charge punishes low-income residents who rely on prepaid meters to avoid debt, with no published cost-of-supply to justify it. While the proposed increase to R270 was dropped, the core injustice persists,' he said. Will ActionSA block the budget? He claimed not to have been consulted on the budget and would make his feelings known when council votes on passing the fiscal framework on Thursday. 'We will never vote in favour of a budget that sustains unjust charges on the poor, enables financial mismanagement, or ignores basic service delivery failures. 'We stand with the people of Johannesburg, and we vote accordingly,' he said. How many votes does the ANC need to pass budget? There are 270 seats in council. The ANC would need 136 votes to pass the budget. Below is the breakdown of seats by party in the City. African National Congress (ANC): 91 seats 91 seats Democratic Alliance (DA): 71 seats 71 seats ActionSA: 44 seats 44 seats Economic Freedom Fighters (EFF): 29 seats 29 seats Patriotic Alliance (PA): 8 seats 8 seats Inkatha Freedom Party (IFP): 7 seats 7 seats Freedom Front Plus (VF PLUS): 4 seats 4 seats African Christian Democratic Party (ACDP): 3 seats 3 seats Al Jama-ah (ALJAMA): 3 seats 3 seats African Independent Congress (AIC): 2 seats 2 seats African Heart Congress (AHC): 1 seat 1 seat African People's Convention (APC): 1 seat 1 seat African Transformation Movement (ATM): 1 seat 1 seat Congress of the People (COPE): 1 seat 1 seat GOOD: 1 seat 1 seat Pan Africanist Congress (PAC): 1 seat 1 seat United Democratic Movement (UDM): 1 seat 1 seat United Independent Movement (UIM): 1 seat While ActionSA voted with the government of local unity (GLU) coalition to bring Morero to power, Mashaba said the party only votes with the ANC on an issue-by-issue basis. There were talks that one day ActionSA would be included in the governance structures of the city, but for now, they only occupy positions in the legislature. Morero running a puppet council? Mashaba said he had lost faith in Morero's leadership, and claimed he was running a puppet council. He claimed to have reported the mayor to the ANC's mother body for allegedly saying that he had appointed Arnolds to control her. 'I know Margaret, you could see she did not understand what she was reading. Dada told me he had appointed her because he could control her,' he said. The Citizen has reached out to Morero's office, the ANC in Johannesburg, and the City of Johannesburg for comment on this claim. Any update will be included once received. GLU partner slams budget The African People's Convention (APC) also disapproves of the budget. 'Only a mere R3 billion is allocated to the poor communities. This budget does not speak to the needs and expectations of the previously disadvantaged communities who continue to live in squalor conditions whilst the city prioritizes the affluent areas of the metropole. 'It does not effectively address the common crime in the CBD, nor does it address the continued shortage of water supply in Joburg,' said the party in a statement. It said it would adopt the budget with reservations and raise the issues it has within the council. Parties outside of GLU won't vote for budget either The second biggest party in the council, after the ANC, the DA was also expected to vote against the budget. They will be joined by African Democratic Christian Party (ACPD). ACDP councillor Norman Mkhonza told The Citizen the allocations in the budget were 'all over the place'. He also questioned the City's ambitions to put sewage pipes and electricity in informal settlements. 'So, are they saying is they are promoting illegality. Do they know who stays in these informal settlements and if those people are even legal in the country,' he said. ALSO READ: DA tables motion of no confidence in Johannesburg mayor and speaker No budget could spell disaster for the City Political analyst Ntsikelelo Breakfast told The Citizen that in a coalition all members should be consulted on matters. 'When there is power sharing, it means that there is no political party that has won elections. Therefore, there must be a consensus across the spectrum. 'If this does not happen, it means it is a serious omission that might cause a serious threat to the stability of the municipality,' he said. Breakfast warned that if the municipality takes time to adopt the budget, it could affect service delivery in the City. NOW READ: How Joburg plans to spend R89 billion
IOL News
28-05-2025
- Business
- IOL News
Johannesburg's R89 billion budget: Can it meet service demands?
Finance MMC Margaret Arnolds tabled the City's budget In Braamfontein, Johannesburg on Wednesday. Image: Nokuthula Mbatha Independent Newspapers Johannesburg Finance MMC Margaret Arnolds unveiled the R89 billion budget for the upcoming financial year, signalling the city's intent to meet rising service demands despite persistent fiscal hurdles. The budget has increased from R83 billion. Delivering her speech in Braamfontein on Wednesday morning, Arnolds' budget outlined a city leaning heavily on water and electricity charges, which continue to be Johannesburg's most significant revenue streams. With property rates and refuse collection fees also increased, the city is turning to its ratepayers to bolster financial stability. The City of Johannesburg faces two chronic challenges: unreliable revenue collection and infrastructure decay. These realities continue to undermine service delivery in one of Africa's largest metros. Arnolds clarified that the budget is fully funded. This assurance comes at a critical time, with residents increasingly vocal about service delivery shortfalls, load shedding, and water interruptions. The revenue surge was largely driven by higher service charges. Electricity and water tariffs are expected to rise significantly, placing pressure on both households and businesses already grappling with inflation and economic strain. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 'Revenue for 2025/26 reflects a 9.3% increase compared to the previous year. This increase is primarily driven by service charges, which account for the largest share of the City's revenue base,' she said. According to Arnolds, electricity service charges are budgeted at R25.6 billion, water and wastewater charges will generate approximately R20 billion. Property rates are expected to generate R18.1 billion, and fuel levy allocations from National Treasury will amount to R4.57 billion. Increased property rates and refuse collection fees further contribute to the city's projected income, she said. While these moves are necessary to keep the city functioning, they risk deepening inequality in communities already under economic stress. As Johannesburg enters the new fiscal year, the question remains: can this ambitious budget restore public confidence and deliver real change on the ground? Arnolds is betting R89 billion that it can. 'The Joburg we want is not separate from the Africa we want - it is the foundation, the test, and the opportunity. Through this budget, Johannesburg is reaffirming its place as a World Class African City,' she said. IOL Politics
The Citizen
28-05-2025
- Business
- The Citizen
How Joburg plans to spend R89 billion
For the 2025/26 financial year, Johannesburg will have an operating revenue of R84.8 billion The council chamber of the City of Johannesburg. Picture: Neil McCartney / The Citizen City of Johannesburg Finance MMC Margaret Arnolds has tabled a R89 billion budget to address the city's service delivery challenges. Arnolds delivered her first budget speech at the Connie Bapela Council chambers in Braamfontein on Wednesday. The primary driver of this growth in total revenue is the rise in service charges, mostly for water and electricity. 'Revenue for 2025/26 reflects a 9.3% increase compared to the previous year. This Increase is primarily driven by service charges, which account for the largest share of the City's revenue base.' Electricity service charges are budgeted at R25.6 billion, up by 12.5%. 'This reflects the approved tariff increase of 12.41%, which is a pass-through from Eskom. 'There is also a focused plan to reduce technical and non-technical electricity losses from 28% to 25.8%,' said Arnolds. Water and wastewater charges will generate approximately R20 billion, up 11.8% from the current year. 'This will be underpinned by an average tariff increase capped at 13.9%, despite a Rand water increase of 15.3%,' she said. Refuse removal revenue increases by 6.4% to R3.3 billion, with service reliability a core deliverable tied to the tariff increase of 6.6%. Property rates, the City's second-largest revenue stream, are expected to generate R18.1 billion, reflecting a 4.6% increase. Arnolds described this as a funded budget even through the city has been struggling with rate collection over the years. Keeping the lights on in Joburg R4.6 billion has been allocated to City Power over the next three years. This is meant to stabilise the grid to prevent collapse and strengthen the network to improve efficiency. 'This is also meant for the expansion of the grid to meet growing demand, prevent system collapse due to the ever-growing and changing energy landscape and to ensure revenue enhancement and reduction of technical losses,' said Arnolds. Water and Sanitation Johannesburg Water will receive the second-largest capital allocation of R5.6 billion over three years to address both service backlogs and infrastructure failure hotspots. The city will invest in new sewer connections to informal settlements and densified townships. Roads and Mobility At least R2.8 billion has been allocated to Johannesburg Roads Agency (JRA) for upgrading high-traffic corridors linking townships to economic centres, particularly in Diepsloot, Soweto, and Lenasia. On the other hand, R400 million has been allocated for expanding stormwater infrastructure in Orange Farm, Ivory Park and Braamfischeville, to prevent flash flooding. JMPD The Johannesburg Metro Police Department (JMPD) will be empowered by a R16 million investment in Public Safety. This will enable the city to fight crime using the latest technology. ALSO READ: Morero's vision to make Johannesburg a world-class African city A pro-poor budget? Arnolds said the city had come up with a tariff strategy which is balanced and progressive. 'It ensures services are funded sustainably without excessive burdens. 'It also ensures indigent households continue to benefit from the Expanded Social Package (ESP). 'We are in the process of reviewing our ESP policy to be more inclusive and allow access to more vulnerable individuals,' she said. Arnolds said the city had the poor in mind when crafting the 2025/2026 budget. 'In this budget, all residents will continue to receive the first 6 kiloliters of water for free, 'Expanded Social Package (ESP) qualifying residents receive up to 15 kiloliters of free water, 50 kilowatt hours (kWh) of free electricity, free sanitation, and refuse removal because in Johannesburg, we believe that basic services are a human right, not a privilege,' she said. Pensioners will receive up to 100% rates rebates on homes valued up to R2.5 million. 'Indigent households, child-headed families, people living with disabilities, and the unemployed are supported through targeted rebates and subsidies on municipal services, housing, and transport,' she said. Arnolds said the city will keep the prepaid electricity surcharge unchanged at R200 (excluding VAT). She said this is a deliberate act to protect the poor against rising energy costs. 'This budget makes it clear: we will not govern in a way that reproduces inequality. Our pro-poor programme is a political choice – rooted in the values of equity, dignity, and redress. 'It is a signal that in the City of Johannesburg, no one will be left behind. Not on our watch,' she said. According to Arnolds, employee-related costs remain the largest expenditure item, aligned with the Multi-year Collective Bargaining negotiated agreement of 5.35% salary increase. She said repairs and maintenance spending has been ringfenced and increased to address ageing infrastructure, with a growing share of operating directed toward proactive maintenance over reactive fixes. She said contracted services and professional fees have been limited in growth. 'This ensures the city does not outsource its core responsibilities unnecessarily,' she said. NOW READ: ANC faction takes aim at Joburg mayor Dada Morero
Eyewitness News
28-05-2025
- Business
- Eyewitness News
City of Joburg's Finance MMC tables R89bn budget
JOHANNESBURG - Johannesburg Finance MMC Margaret Arnolds has tabled an R89 billion budget for the upcoming financial year. Arnolds delivered her maiden budget speech in the council in Braamfontein this morning. Electricity and water remain the metro's biggest sources of revenue, with property rates and taxes also bringing in some money. Despite ongoing challenges with revenue collection, the City of Johannesburg has proposed an increased budget, rising from R83 billion to R89 billion. READ: CoJ wants to incerase electricity surcharge to R270 a month The primary driver of this growth in total revenue is the rise in service charges, mostly for water and electricity. Additional increases in refuse collection fees and property rates have also contributed to the city's boosted revenue. Finance MMC Margaret Arnolds has confirmed that the budget is fully funded. 'Revenue for 2025/26 reflects a 9.3% increase compared to the previous year. This increase is primarily driven by service charges, which account for the largest share of the city's revenue base.' She says the city now has to focus on boosting its revenue collection efforts.
