​Council Speaker, Nonceba Molwele has issued a Notice of Cancellation following the municipality's inability to adopt a budget by the end of the preceding financial year.

Joburg's 2019/2020 fiscal cycle ended on 30 June, and the municipality is mandated by section 24(2) of the Local Government: Municipal Finance Management Act (MFMA) 2003 (Act 56 of 2003) to adopt an approved budget by the first day of the subsequent month.

However, this has not been achieved. “The decision to issue a Notice of Cancellation is based on legal advice received on the peculiar circumstances that confront Council," says Molwele.

She adds that in terms of the law, the Executive Mayor, Geoffrey Makhubo is obliged to inform the provincial MEC of Cooperative Governance and Traditional Affairs (Cogta) Lebogang Maile, and the Gauteng executive of the failure of Council to approve a budget before the commencement of the new financial year.

Mayor Makhubo has requested the provincial executive to intervene through appropriate measures in terms of Section 139(4) of the South African Constitution.

“The City will await the directive and guidance of the provincial executive council before convening any Council meeting for the consideration and adoption of the 2020/21 Budget, Draft Integrated Development Plan (IDP) and other tariffs and matters which ought to have been considered by Council," Molwele explains.

The Speaker says the legislature is committed to serving the best interests of the people of Johannesburg and upholding a responsive government.

“I am mindful of the concerns that the current state has caused and would like to assure everyone that everything is being done within the ambit of the law to address the situation," she says.