The DA in Ekurhuleni Rejects Motion of No Confidence Against Executive Mayor Campbell

by Cllr. Raymond Dhlamini — DA Caucus Chairperson in the City of Ekurhuleni

Date: 29 March 2022

Release: Immediate

Type: Media Statement

The Democratic Alliance (DA) in Ekurhuleni rejects the Motion of No Confidence (MoNC) submitted against the Executive Mayor. Ald. Tania Campbell, by minority parties in Council.

The MoNC is the inevitable result of the nationwide hostile takeover from the EFF-ANC alliance using minority parties as proxies to perform their dirty political dealings.

This is no different from the MoNCs tabled against the former Executive Mayor for the City of Johannesburg, Cllr. Mpho Phalatse and that of the former Executive Mayor for the City of Tshwane, Cllr. Randal Williams.

The motion itself is frivolous and does not hold water.

It cites resignations, administrative and financial commitments of the City, committee attendance, and unavoidable tariff increases as reasons to consider the fitness of the Executive Mayor.

Equally so, it cites the City’s 13-day R372.4 million bank balance (cash on hand) and R1.29 billion debt to Eskom, which cannot be changed or improved in less than a year of stable governance. It was in fact the ANC-led Coalition that burnt through R8-billion in cash reserves between 2016 and 2021 for its weak financial performance leaving the City on the brink of financial collapse.

When the DA-led Multi-Party Coalition ascended to office, we found a city with a collection rate of around 84% compared to the budgeted 90%.

Cash on hand deteriorated to a 14-days reserve, which is way below the National Treasury’s 30-day minimum requirement. Let alone, the global integrated risk assessment firm, Moody’s, made the decision in 2021, to downgrade the City of Ekurhuleni’s rating from B3 to Caa1 which reflected the City’s fragile liquidity position in the context of weaker operating performance, its weak budget and management practices, and its relatively complex debt structure, which raised credit risks.

The City’s Gross Operating Balance to Operating Revenue was relatively low at 1.3% in 2021, because of the city’s declining revenue collections.

The City’s short-term liquidity declined by 51% to R1.7bn in the 2021 fiscal year, from R3.5bn in the 2020 fiscal year.

This has affected service delivery the fixing of roads, stormwater, traffic lights and potholes as cited in the motion.

Tender fraud under the infamous “Cargate” scandal which is currently under investigation by the Special Investigative Unit, saw the City’s in-house fleet deteriorate by more than 10 years through manipulation of a R320 million vehicle maintenance tender.

It is for this very reason that the City suffered a waste collection crisis due to constant vehicle breakdowns. It is only now under the DA-led Multi-Party Coalition that waste trucks are being purchased outright to replace the City’s ageing in-house fleet.

The ANC is again pushing for the acquisition of city vehicles by means of a full maintenance lease much like what was planned under the vehicle maintenance scandal, which has since been deemed economically unviable and is something the DA is vehemently in opposition of.

Under the leadership of Executive Mayor Campbell, drastic measures have been put in place to save money and curb corruption, from placing a moratorium on overseas travel for officials and political office bearers to centralising the procurement of office furniture, information communication technology, and vehicle licensing, launching investigations into fleet management options to reduce costs, and enacting stricter control measures to improve revenue and clamp down on meter tampering.

It has therefore been clear from the onset that the motions against Executive Mayor Campbell have been nothing but a ploy by the ANC to regain control of the City’s coffers and reverse the great work of the Multi-Party Coalition.

Cllr. Raymond Dhlamini

DA Caucus Chairperson, Ekurhuleni