Lesufi’s government fails to assist Gauteng municipalities drowning in R18.61 billion debt

3 September 2024

Gauteng municipalities are grappling to deliver services to residents as they drown ever so deep in R18.61 billion debt.

The concerning levels of municipal debt in Gauteng, as revealed in the Local Government Revenue and Expenditure: Third Quarter Local Government Section 71 Report, highlight the dire need for the Gauteng Provincial Government (GPG) to step up and provide comprehensive financial management support to struggling municipalities.

The cash-strapped Emfuleni Local Municipality has an astounding R9.82 billion in creditor balances, by far the highest in the province. This debt is astonishingly higher than the combined debts of the City of Ekurhuleni (R3.36 billion) and the City of Johannesburg (R3.71 billion). Rand West City has an R1.72 billion debt.

It is clear that the Gauteng Premier, Panyaza Lesufi’s government, particularly the Department of Cooperative Governance and Traditional Affairs (COGTA), is failing dismally to assist these municipalities in getting their finances in order. Residents are the ones who end up suffering the most, as service delivery is continually impacted by these municipalities' financial woes.

Most of these municipalities’ ratepayers struggle to access uninterrupted and reliable electricity and water supply. The roads are littered with potholes and flooded with sewage.

The DA-led Midvaal Municipality has a relatively low creditor balance of only R60.18 million, demonstrating the benefits of sound financial management. This municipality continues to demonstrate that where the DA governs, clean and efficient governance is the norm rather than the exception.

The DA will continue to put pressure on the Department of COGTA to ensure that it assists municipalities with comprehensive financial management support and training, ensuring they have the skills and mechanisms in place to avoid these severe debt crises.

A DA government would have turned things around in these highly indebted municipalities by putting adequate financial control systems in place.

The DA remains committed to ensuring that Gauteng residents are not denied services due to the incompetence of local government and provincial leaders.

Issued by Solly Msimanga, Official Leader of Opposition: Gauteng, 3 September 2024