The Freedom Front Plus (VF Plus) warned the Ekurhuleni Metro against begin lulled into a false sense of security by its current bank balance of R1,1 billion, which equates to 21 days of operating costs.
The figure was disclosed in the fourth quarterly report of the 2024/25 financial year.
The figure is misleading, though, as it does not account for the R5,79 billion currently owed to Eskom or the R439 million owed to Rand Water. It also excludes amounts owed to other major service providers.
The Freedom Front Plus maintains that this figure (R1 167 420 063,94) creates an accounting illusion misleading the public about the Metro’s actual liquidity. If all major debts were to be settled simultaneously, the actual cash flow could drop to less than 10 days of operating costs.
The Freedom Front Plus condemns the practice of deliberately omitting major creditors’ payments from the report and only settling those accounts after the report’s publication.
According to the Metro, its outstanding Eskom accounts will be settled within 30 days, and it is adhering to the formal payment arrangement with Eskom, effective since 26 February 2025.
Rand Water’s bulk invoices are paid according to a two-tiered instalment structure (60% within 30 days and 40% within 45 days).
The Metro asserts that it has not defaulted on these arrangements.
The Freedom Front Plus acknowledges this, but wishes to point out that such payment plans do not reduce the extent of the Metro’s actual debt, which still poses a significant risk to service delivery and financial sustainability.
