The City of Johannesburg is facing cash flow pressure, with mayor Dada Morero revealing limited financial coverage while billions of rands remain due to bulk service providers Eskom and Rand Water.
Johannesburg mayor Dada Morero has warned that the City has enough available cash to keep operating for only 12 days should an emergency or unexpected financial pressure arise, as it awaits an equitable share transfer from National Treasury to settle billions of rands owed to Eskom and Rand Water.
Morero said the City currently had only 12 days' cash coverage, meaning it had enough available money to continue funding its operations for that period if an unforeseen event occurred.
"But the coverage that we have is at least 12 days, meaning that should anything happen we only have sufficient finance to support whatever happens for 12 days," Morero said.
He said municipalities often experienced fluctuations in cash coverage because they relied on their own revenue collection to fund operations.
