Johannesburg defends R10 billion Samwu wage deal amid financial constraints
via The Citizen3 min read
Johannesburg city officials have defended their R10 billion wage agreement with the South African Municipal Workers Union Samwu despite facing significant financial challenges. Mayor Dada Morero and senior management appeared before the Standing Committee on Public Accounts to address findings by the Auditor-General of South Africa AG. Group CFO Tebogo Moraka explained that the city's creditor balance was approximately R7.5 billion at the end of May, with priority given to creditors of entities like City Power, Johannesburg Water, Pikitup, and Johannesburg Roads Agency. Moraka noted that prioritizing these entities, which are already in deficit, strains the city's finances, requiring selective payments based on monthly revenue. To improve revenue collection, a "revenue war room" has been formed, involving the CFO, city manager Floyd Brink, the COO, and managing directors of various entities. The city has also implemented measures to reduce financial waste, including weekly procurement and expenditure tracking. City manager Floyd Brink reported that Johannesburg still has R13.2 billion in unresolved unauthorized, irregular, fruitless, and wasteful expenditure, although R45.1 billion of such expenditure has been addressed in the last five financial years. Mbulelo Ruda, Johannesburg's group head of legals and contracts, stated that the Samwu deal, mandated by a CCMA ruling, aims for "justice redressed and institutional stability." He emphasized that the agreement's founding prin
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