Ekurhuleni — Cash Strapped and Broke under EFF-led Coalition
by Cllr Alta de Beer — DA member on the Finance oversight
Date: 01 August 2023
Release: Immediate
Type: Media statement
The EFF/ANC coalition, in the City of Ekurhuleni, owes Eskom approximately R2.6 billion and Rand Water R800 million, while only having around R92 million in cash-on-hand. This was revealed in the unaudited financial performance results of the fourth quarter of the 2022/23 financial year tabled in council.
In addition, while the Red coalition struggles to keep the lights on and service delivery is in a state of collapse with communities protesting for services, the city’s monthly operational expenditure balloons to R4.6 billion.
The unholy EFF and its nefarious partners are hollowing out the city’s coffers, setting the city’s trajectory towards bankruptcy for simple political expediency.
The EFF MMC for Finance, Cllr Dunga tried to sugarcoat the City’s current financial situation, we have strongly condemned him for the misleading and deceptive figures.
The EFF/ANC claims the City has 25 days cash-on-hand, however, the DA believes that this is merely ‘clever accounting’ and instead the city is in free fall with barely one day’s cash on hand. While the financials report that the city has R552 million in the bank, this includes R460 million of grant money. This leaves a mere R92 million of actual cash-on-hand.
When calculating the cash in the bank, one needs to deduct unspent grant funding divided by the monthly operational costs of the city. If this calculation is done, then the answer is less than 1 day of funding available.
When the DA took over the City of Ekurhuleni from the ANC, following decades of financial abuse and corruption, the DA-led government, under the DA Executive Mayor, Ald Tania Campbell together with DA MMC for Finance, Cllr Fana Nkosi, established a Revenue Enhancement Task team in an effort to stabilise the City’s finances and bring better quality services to communities. This Task team began to see impressive results and significant benefits as indicated by the revenue collection of 129,36% for the 4th quarter which is well above the quarterly target of 85%.
The DA took the financial well-being of the City and its residents seriously. The DA will continue to monitor the City’s financial situation. We cannot allow for deception and misuse of public funds. Communities deserve quality, value-for-money services.
Cllr Alta de Beer
DA Ward Councillor for Ward 28
082 777 1406
