ANC-led Ekurhuleni facing major cash flow crisis with only 13 days of cash left on hand
by Cllr. Ivan Naidoo — DA Deputy Shadow MMC for the Finance Oversight in Ekurhuleni
Date: 02 February 2021
Release: Immediate
Type: Media statement
The Democratic Alliance (DA) is shocked to learn that the ANC-led coalition government in the City of Ekurhuleni (CoE) has a mere 13 days of cash left in its coffers, despite the ANC appointed Executive Mayor, Cllr Mzwandile Masina, declaring a stable financial position.
The dire cash flow situation is a result of poor planning by the ANC Coalition-led Metro, who through decreasing revenue collection rates, costly overtime payments, and general poor performance across key departments within the Metro, find themselves in a desperate financial state.
While the ANC-led coalition predictably blamed the situation on the Covid-19 pandemic during a Virtual Council Meeting on the 28th of January 2021, it is clear that from financial performance results for the second quarter of the 2020/21 Financial Year (FY), it is a result of poor planning with no accountability.
Overtime payments have been particularly devastating to the CoE’s financial state and the City’s policy is clearly unsustainable. Since 2017, the DA has been calling for a shift rotation system in a number of Departments and entities to offset these losses. These calls, however, have fallen on the deaf ears of an uncaring ANC and its coalition partners.
For the residents of Ekurhuleni, the financial squeeze on the City means a decrease in service delivery. In the Second Quarter of FY 2020/21, the City underspent on maintenance and repairs leading to an increase in potholes, power outages, sewage overflows and a general deterioration of basic services. A far cry from the Batho Pele principles of “We belong, we care, we serve” that the Metro supposedly subscribes to.
Now, more than ever, the City needs an administration that can implement innovative, forward-looking, strategic measures and controls that can effectively manage the financial situation that the City finds itself, and thereby promote the wellbeing of residents through increased service delivery. Only the DA can provide this solution and take the City forward.
Cllr. Ivan Naidoo
DA Deputy Shadow MMC for the Finance Oversight in Ekurhuleni
