The Freedom Front Plus (VF Plus) warned during today’s council meeting that the Ekurhuleni Metro’s plan to insource cleaning and security services poses serious financial and management risks.
If the project is unsuccessful, it could place even more pressure on the Metro’s already constrained budget and hamper service delivery.
Council approved the creation of more than 590 new posts, including cleaners and security personnel. This decision commits the Metro to paying more than R210 million in salary costs per year – without taking into account additional expenses such as overtime, benefits, uniforms, training and long-term obligations such as pensions and leave.
This will significantly drive up the Metro’s wage bill.
There is no detailed cost comparison proving that using internal staff is cheaper than contractors. In addition, existing budgets have been reduced by 50% to finance contracts, putting further strain on the Metro’s finances.
Personnel appointments should be based on affordability, but the Metro’s plan ignores this limitation and creates long-term financial obligations that are difficult to reverse. Pensions, standard benefits and leave payments are fixed liabilities that the Metro will be saddled with for years.
Creating hundreds of new posts without ensuring that appointments are strictly merit-based could pave the way for cadre deployment and irregular practices.
Consequently, the wage bill could keep growing without service delivery improving, which comes down to a job-creation scheme at the expense of residents.
Although increasing internal capacity may offer certain long-term benefits, it will only exacerbate Ekurhuleni’s financial problems if there is no strict financial oversight.
The Freedom Front Plus’s support is conditional on transparent, merit-based appointments and measurable improvements in service delivery.
If implemented correctly, it could bolster the Metro.
If not, it will plunge Ekurhuleni deeper into debt and maladministration.
