Cape Town – The Democratic Alliance (DA) has highlighted Johannesburg’s financial mismanagement, revealing that the city’s debt of nearly R2 billion has left City Power struggling to restore power outages promptly.
In response to parliamentary questions, the DA stated that City Power currently has no available stock of mini-substations. The previous supply contract has expired, and a new procurement process has yet to be completed.
As a result, when equipment fails or is damaged, City Power must rely on external contractors, leading to further delays and additional costs. Some contractors have also reported late payments, in some cases exceeding the 30-day legal requirement, due to the City of Johannesburg failing to transfer sufficient funds to its own utility.
“By the end of August 2025, the city owed City Power over R2 billion due to persistent short-payments, and no satisfactory explanation has been provided for this shortfall.
“It has become a vicious cycle of expired contracts, delayed procurement, and cash-flow crises that urgently need to be rectified.
“This continues to leave residents paying the price through extended blackouts, reduced maintenance, and longer restoration times,” said DA.
The DA blames the ANC/EFF/PA coalition for the collapse of City Power, citing a lack of leadership and vision required to run the city effectively.
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💸 R64 million was paid by City Power to a contractor — but only 81… pic.twitter.com/v01QoZ3Yax
— Democratic Alliance Gauteng Legislature (@DA_GPL) October 6, 2025
“Enough is enough, Johannesburg residents deserve better. The DA remains committed to building a City that works, and those who contribute to destroying it must be held to account.
“The DA has consistently called for sound financial management, transparent procurement, and timely payments to all City entities. Only when these fundamentals are restored will City Power be able to keep the lights on,” said DA.
According to EWN, DA councillor and the party’s Johannesburg spokesperson on the mayoral committee for environment and infrastructure services, Tyrell Meyers, said the funding shortfall is not only delaying critical maintenance and the procurement of equipment but has also left several contractors unpaid.
This, he added, has further contributed to delays in power restoration across the city.
“The city’s finances are being mismanaged; they’re not collecting enough money first and foremost. They’re not paying them over timeously to the municipal entity,” said Meyers.
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Compiled by Anda Tolibadi
