Poor Debt collection affecting City performance

by Cllr Graham Gersbach — DA Member for Finance in Ekurhuleni

Date: 05 May 2021

Release: Immediate

Type: Media Statement

The Democratic Alliance (DA) in Ekurhuleni has lambasted the ANC-led City of Ekurhuleni and its coalition partners at the poor levels of debt collection by the City, which is having a serious effect on the current performance of the Metro.

Worryingly, the City is owed approximately R206 Million, which is in excess of 30 days. Included therein is almost R86 million for Pensions / Retirement Deductions in excess of 180 days. The DA questions how the ANC has gotten the city into this dire situation.

But we do note, revenue for refuse removal service charges are 13% below budget, because of less demand from business and a large portion of non-operational vehicles. The City should have made related savings and, yet there is no money to repair or licence vehicles, responsible for carrying out these services.

This highlights the poor management of the City, as there seems to be no plan to adapt to the changing circumstances.

If this Metro was run by the DA, we would ensure properly maintained vehicles and implement a proper replacement policy, to ensure vehicles or infrastructure at the end of their lifespan, would be replaced.

For instance, residents of Woodmere have sinkholes due to collapsed stormwater networks and they have been told for the last 12 years that the ANC-led City did not have the money, estimated at R10 Million, to carry out the necessary refurbishment of the network.

The DA believes it is time to return to getting the basics right. We need to fix failing infrastructure, ensure quality services are delivered and proper maintenance and repairs are undertaken. The ANC must stop wasting ratepayers’ money on dreams like a zoo and formula one track. Residents need services!

*Coalition Partners: African Independent Congress (AIC), Pan Africanist Congress (PAC), Patriotic Alliance (PA) and Independent Ratepayers Association of South Africa (IRASA)

Cllr Graham Gersbach

DA Member for Finance in Ekurhuleni