Power, Joburg Water and Pikitup are one step closer to falling under the operational control of the Johannesburg municipality, Mayor Herman Mashaba said on Sunday.
“On Thursday, Johannesburg City Council approved a report proposing the initiation of a process to reintegrate municipal-owned entities…”
Currently, said Mashaba, “the absurdity of this situation is that the City is the sole shareholder of these entities, but they operate under the Company’s Act and are semi-autonomous of the City”.
The managing directors and chief operating officers of these entities report, not to the municipality, but to a board of directors.
“How can a City be responsible and accountable to its residents for fast-tracking service delivery when it does not have complete control over the entities that implement delivery?”
The mayor said he hoped the entities – including City Power, Joburg Water and Pikitup – would be reintegrated back into the City’s structures within 18 months.
He said the report, which was approved earlier this week, detailed the process which would be followed, including establishing task teams, conducting feasibility studies, and ensuring public consultation.
Mashaba said there would be no job losses, as employees would be incorporated into the City’s structures.
He said the move would also save the City money, as the current salaries of non-executive board members for the entities cost R18-million a year.
“This is what we need to do to correct the sluggish and non-responsive nature of our service delivery in our City.”