ANC/EFF reduces Ekurhuleni to junk status

6 March 2024

The Democratic Alliance (DA) in the City of Ekurhuleni (CoE) notes with serious concern the city’s credit rating downgrade by Moody’s.

Under the leadership of the EFF and the ANC the city has been downgraded to Caa2 - Junk Status.

According to Moody’s this decision was taken after the City failed to Submit their 2023 Audited Financial Statement to the JSE (Johannesburg Stock Exchange) by 29 February 2024. The City is a listed Entity with the JSE and has debt securities (bonds) which are listed. Compliance dictates that Audited Financial Statements be presented.

Unfortunately, this damning downgrade by Moody’s is going to have a crippling impact on service delivery to communities, as an already struggling city, will now struggle even more to gain credit, or loans.

The DA is worried that the residents might have to pay more for their already compromised service delivery in the City. Service Providers go unpaid for months as is, what will the EFF/ANC do to rectify the situation now?

We have been critical of the ANC/EFF Doomsday Alliance, which has collapsed the city’s services and finances. In fact, while the Auditor General report is yet to be tabled in Council, it is alleged that the city is yet to receive a clean audit. If true, this damning report will show just how bad things are in the City.

It is for this reason that we brought a motion in October of 2023 to the debate the State of the Finances of the City. We were already alarmed with the City’s inability to pay for services rendered by contractors. At the time the city owed almost R2.5 billion, while having little to no cash on hand.

For months we have been asking the MMC of Finance, Cllr Dunga, to table the AG’s findings, alongside a report to council on the city’s finances. The Response from the MMC was that there was no Report from the Auditor General.

We all, as confirmed by the AG, know that such a report exists.

This is a clear indication of a government that is not in touch with its communities. The free fall of the city under the uncaring EFF and ANC highlights our urgent call to dissolved council and have fresh elections.

Let the residents decide on who should govern Ekurhuleni.

Issued by Fana Nkosi, DA Shadow MMC for Finance in Ekurhuleni