Johannesburg Water's R4 billion surplus not 'missing,' says Treasury and AG

National Treasury and the auditor-general have confirmed that Johannesburg Water’s records show a R4 billion revenue surplus, but the money is not directly available to the entity.

This clarification follows reports two months ago suggesting that R4 billion was "missing" from the entity’s bank accounts. The city has since clarified that the surplus was transferred to the city’s group fund.

Representatives from National Treasury and the auditor-general confirmed in Parliament that while the R4 billion was recorded in Johannesburg Water’s books, it was never accessible to the utility.

The City of Johannesburg manages its finances through a centralised system, where revenue from its various entities flows into a single bank account. The city then allocates funds to each entity based on immediate needs.

With Johannesburg Water reporting a R4 billion surplus, opposition parties had expected the money to be directed entirely to the utility for infrastructure improvements. Instead, the funds were used to cover financial gaps elsewhere in the city.

Msizi Mavundla, an auditor at the Auditor-General of South Africa (AGSA), confirmed this to Parliament.

"In the books of Johannesburg Water, there is an acknowledgement that there is R4 billion that it’s owed by the city. The two entities acknowledge that one owes the other and one is being owed."

He said that Johannesburg Water had been struggling to pay its suppliers, possibly because the entity must first request funds from the city.