TARNISHED CITY OF GOLD: Tipping point — gatvol business leaders condemn Joburg’s decline and fall

This is the first big public statement by the business community as the local government elections loom in November, and its tone and timing underline the mounting frustration within the private sector over the city’s pothole-ridden decay.

The City of Gold has long been losing its shine in the face of corruption, incompetence and maladministration, and business is gatvol with the unfolding collapse of South Africa’s financial centre and economic engine.

“When Johannesburg is in a state of visible decline, it undermines the national growth story at precisely the moment a more positive narrative is gaining credibility. This is not a local political problem. It is a national economic emergency,” Business Unity SA (Busa), Business Leadership SA (BLSA) and Business for South Africa (B4SA) said in a joint statement on Thursday.

“Business leaders are ready to play their part in rebuilding Johannesburg, strengthening South Africa’s growth trajectory, and creating jobs — in concrete, visible, and meaningful ways. We call on all those with authority and accountability to do the same.”

This is the first big public statement by the business community as the local government elections loom in November, and its tone and timing underline the mounting frustration within the private sector over the city’s pothole-riddled decay.

The statement pointedly noted that Johannesburg’s woes stand in stark contrast to the green shoots that are emerging in the national economic landscape — shoots that will not reach their full potential with a withered Joburg.

“Business confidence is recovering, energy stability has been restored, and the country’s first sovereign credit rating upgrade in twenty years signals genuine momentum. Sustaining and accelerating that momentum requires Johannesburg to function,” it said.

And while the rot has been eating away at the city’s core for years, a tipping point has been reached.

“What is new is the severity and urgency of the situation. The Minister of Finance has formally placed the city on notice: its adjustment budget is unfunded, it is in severe financial distress. Eskom has indicated it may suspend electricity supply to the city over unpaid debt,” the statement said.

“The situation is serious, and it is the result of accumulated failures, not of a single administration.”

As the city hires new executives for no apparent reason, giving rise to suspicions of patronage and nepotism, capital expenditure — the money needed to fix or maintain stuff — now only accounts for 6% of its budget.

“Maintenance spending stands at 0.5% of asset val