The Hard Hat Professional

In January 2014, the National Treasury published Municipal Finance Management Act Circular no. 71, which mandated that municipalities allocate at least 8% of the carrying value of their property, plant, equipment, and investment property to repairs and maintenance activities. This directive aimed to ensure that municipalities prioritize the upkeep and preservation of their assets. A civil society group called Organization Undoing Tax Abuse (Outa) has, through its initiative JoburgCAN, highlighted that the city of Johannesburg consistently under-budgets for essential repairs and maintenance tasks. The city's financial reporting also lacks accuracy and consistency, with significant variations in numbers from year to year without any explanation. JoburgCAN analyzed the city's reported spending on repairs and maintenance from 2014/15 to 2023/24, along with the projected spending for 2024/25. This analysis covered a period of ten years since the Treasury set a standard of 8% for ma