The Freedom Front Plus (VF Plus) is justifiably alarmed by the Ekurhuleni Metro’s report on the first quarter of the 2025/26 financial year.
The financial report confirms that the Metro is dangerously close to the fiscal edge of ruin.
Although the Metro claims its collection rate is 96,26%, previous reports indicate that collection levels in Eskom areas are, in fact, as low as 11,8%. This places an unfair burden on a smaller group of residents and businesses who do pay, and who now have to shoulder the entire Metro’s financial load.
Meanwhile, cash reserves have dropped to only fifteen days, far below the National Treasury’s (NT) minimum requirement of 25 days. This means Ekurhuleni is one financial setback away from a cash-flow crisis.
The situation is further exacerbated by uncontrolled overtime expenditure. Although R161,8 million was budgeted for overtime payments, the Metro has already spent R215,6 million – a 33% overspend in just three months.
Service delivery is stagnating, while R2,1 billion in debt was written off in the first quarter alone. If this trend continues, the Metro could lose more than R8 billion in the current financial year, which equates to 1 out of every 5 rand simply disappearing.
The consequences for residents are tangible: service delivery deteriorates, emergency repairs are not done, cash-flow for infrastructure dries up and tariffs keep climbing without any improvement in services.
This is not fiscal stewardship, but squandering.
A metro following this approach to revenue collection, spending and writing off debt cannot keep functioning sustainably.
The only way to avert a crisis is to immediately ensure financial discipline and transparency in Ekurhuleni.
Residents deserve stability, reliable service delivery and honest reporting, not financial recklessness and denial.
