The FF Plus has warned the Ekurhuleni Metro that it cannot afford to insource services and by doing so it might sink even deeper into debt.
Ekurhuleni has always made use of contractors to provide certain services.
It is doubtful whether the Metro will be able to successfully execute the first phase of service delivery, which includes security and cleaning services, seeing as it will have a significant impact on its 2023/24 financial budget.
The decision to start rendering services itself means that the Metro will have to permanently employ specialist persons, which will drive up the wage bill.
The Metro will also have to provide all the necessary equipment, uniforms and the like.
Ekurhuleni currently has only twelve days’ worth of cashflow at its disposal; it is not even enough to pay its Eskom and Rand Water bills. The Metro currently owes Eskom R1,6 billion.
In addition, the Metro is also more than 30 days in arrears in paying its top 1 000 creditors.
The party is of the opinion that the change cannot happen overnight and that it might take up to nine years before the Metro itself is able to deliver all these services.
In essence, the FF Plus is not opposed to the idea that the Metro itself renders all its services, but Ekurhuleni’s finances currently do not allow it.
