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BIJHB - Press Release: The City of Johannesburg remains financially sustainable and resilient
CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY
(a municipality as described in section 2 of the Local Government Municipal Systems Act,
2000, duly established in terms of Notice No. 6766, promulgated in the Provincial Gazette
Extraordinary of 1 October 2000 in terms of section 12(1) read with section 14(2) of the Local
Government : Municipal Structures Act, 1998, as amended)
Issuer Bond Code: BIJHB
Bond Code: COJ04
ISIN No: ZAG000030941
Bond Code: COJ05
ISIN No: ZAG000054339
Bond Code: COJ07
ISIN No: ZAG000085044
Bond Code: COJ08
ISIN No: ZAG000137571
Bond Code: COJG01
ISIN No: ZAG000116708
MEDIA RELEASE
13 September 2017
THE CITY OF JOHANNESBURG REMAINS FINANCIALLY SUSTAINABLE AND RESILIENT
The City of Johannesburg Metropolitan Municipality (the City) is committed to continuous
improvement of service delivery to residents and all our stakeholders. To this end, financial
sustainability is key to municipal operations.
The City would like to give investors and all other stakeholders, assurance that there is no
financial crisis and the municipality remains financially sustainable and able to meet all
obligations as they fall due.
Notwithstanding, reference to the billing issue is best understood within its context. As the
Executive Mayor Cllr Herman Mashaba noted, the billing regionalisation project that was
implemented in February 2017 resulted in some of the customers being billed twice in one
month. The project was aimed at reducing the time between consumption and payment for
services through the re-alignment of the billing portions by the geographic regions of the City.
In total, 41 208 customers were affected (out of 1, 094 976 clients), but all interest and
penalties charged on those accounts have been reversed. Noteworthy, no further penalties
will be charged until the accounts have been normalised.
Moreover, the City has instituted robust credit control management to ensure that the
municipality recovers billed monies from all customers who are in arrears, and we are
pleased to announce that great strides in collecting outstanding monies are being made.
2017/2018 Redemptions
The municipality’s redemption strategy is in place to make sure that borrowings to the tune of
R2.733 billion will be redeemed in the 2017/18 financial year. The redemptions will be
executed through the debt redemption fund whose balance is over R4.3 billion.
Joburg Finances are Stable
Despite South Africa’s weak economy, the City’s credit rating was recently affirmed by
Moodys at Aa1.za/P-1.za which is an affirmation of the confidence in the City’s ability to
manage its finances.
The City is an agile and responsive organisation and continues to experience strong revenue
growth underpinned by its status as South Africa's business capital and main financial and
economic centre. Our financial management systems remain relevant to respond to dynamics
of the economy. Our economic base remains large and well diversified enough to absorb any
adverse effects of the changing global economic climate.
Ends
Issued on behalf of
Seth Mukwevho
Acting Group Head: Treasury
Tel: (011) 242 1056
Debt Sponsor
Absa Bank Limited (acting through its Corporate and Investment banking division)
2
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