ActionSA demands EFF-ANC coalition take accountability for pushing Ekurhuleni’s into financial meltdown

17 October 2023

Today, the City of Ekurhuleni Council debated the City’s ailing financial situation. The historic debate takes place against the backdrop of the Speaker of Council’s call for an extra-ordinary council meeting following an urgent motion supported by ActionSA.

As a constructive opposition party in Ekurhuleni, we outlined key interventions that the City needs to implement immediately that can turn things around, and avoid the City being placed under administration. These interventions need to include:

- Re-integrating Municipal Entities into their line departments in the City, which will reduce the wage bill and go a long way to ameliorating accountability deficits.

- Increase Residential Collection rates, which are currently sitting at 64%.

- Appointing contractors to collect revenue in Eskom serviced areas.

- Eliminate ‘No-go areas” where illegal electricity connections are rife.

- Increase investment into water & electricity infrastructure.

- Install smart meters to reduce unaccounted water usage, currently sitting at R1.5 billion.

The true, current state of financial affairs points to a City in fiscal and financial management distress. It is becoming apparent that the current coalition government of the ANC-EFF, led by the hapless Mayor Ngodwana, have led Ekurhuleni to the brink of being placed under administration for failure to pay creditors on time.

Ekurhuleni currently owes creditors R4 billion, including:

- R1.5 billion is owed to Eskom;

- R117 million is owed to ERWAT;

- R2.5 billion is owed to Outsourced Contractors; and

- R174 million is owed to Randwater.

To this effect, ActionSA demands that the Executive Mayor, Cllr Ngodwana, the EFF MMC for Finance, Cllr Dunga, and the City Manager, Dr Mashazi, come clean and admit that they have failed to put in place basic financial controls that would improve the City’s balance sheet. This is alarming for a city that is on brink of collapse as far as service delivery is concerned.

Under the EFF-ANC coalition, the City of Ekurhuleni is limping from crisis to crisis due to political infighting.

Whilst we call for change, we must demand accountability from the Executive Mayor and work tirelessly to rectify this situation. Only through effective governance and responsible leadership can we restore the dignity and hope of our city's neediest residents.

Issued by Siyanda Makhubo, ActionSA COE Caucus Leader, 17 October 2023