City of Ekurhuleni close to being placed under administration as Eskom reveals city owes it R1.5 billion

5 October 2023

Yesterday, Eskom revealed that the City of Ekurhuleni owes the power utility R1.5 billion. In the statement, Eskom revealed that “the City has failed to fully honour its payments and to comply with its electricity supply agreements.”

Last week, ActionSA supported an urgent motion in Council to debate the financial crisis in which the city finds itself. The EFF Speaker of Council, Cllr Tshivhenga, decided to block this motion to protect the EFF MMC of finance, Cllr Dunga, who is leading the city into financial collapse.

ActionSA has since written to Cllr Tshivenga to consider this as an urgent matter and concede to call for a special council meeting so as residents may be informed of the true state of affairs of their City.

Added to unpaid Eskom bill, Ekurhuleni 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
• 174 million is owed to Randwater.

Failure to honour these obligations risks Ekurhuleni being placed under administration for the first time. Mayor Ngodwana must tell the residents of Ekurhuleni why they must trust the City of Ekurhuleni with their rates and taxes when the City fails to honour its financial obligations.

ActionSA is demanding that the Executive Mayor, Cllr Ngodwana, the EFF MMC for Finance, Cllr Dunga, and the City Manager, Dr Mashazi, come clean and admit that the City’s current handling of finances and mechanisms put in place by the ANC-EFF coalition are not working as it places the City under dire financial difficulties.

It is clear that a drastic change is needed in this municipality and the only way in which this can happen is if the current ANC-EFF coalition is removed and replaced with an administration committed to good governance.

Issued by Siyanda Makhubo, ActionSA City of Ekurhuleni Caucus Leader, 5 October 2023