The Ekurhuleni Metro once again received a qualified audit opinion from the Auditor-General (AG) for the 2024/25 financial year, indicating that certain financial information cannot be verified or lacks credibility.
This is the outcome even though the Metro declared a dispute with the AG and needlessly dragged out the process.
It serves as a serious warning of poor financial management and flawed controls.
What is even more concerning is the fact that the report confirms irregular, fruitless and wasteful expenditure, meaning that taxpayers’ money is still misappropriated without those responsible facing any consequences.
The ruling ANC-led administration wants to create the impression that the sole reason for the qualified audit opinion is the R2 billion that was lost in the information and communication technology debacle.
Although the scandal resulted in the suspension of the Chief Information Officer, Moloko Monyepao, during the relevant financial year, a dark cloud of controversy still hangs over the more than 1 600 accounts that were allegedly tampered with.
The Freedom Front Plus (VF Plus) is, furthermore, extremely concerned about the dramatic weakening of Ekurhuleni’s financial position – particularly noting a deficit of R656 million at the end of the financial year in stark contrast to a surplus of R545 million at the beginning of the year.
The report also highlights poor collection rates, electricity revenue falling short of projected figures and a collapse in traffic fine revenue due to a dysfunctional traffic management system.
On the expenditure side, costs continue to climb due to, among other things, sharply increasing bulk purchases, a sharp increase in outsourced services as well as rising personnel and overtime costs.
Despite this, certain departments, such as Service Delivery Coordination, achieved 0% of their targets – without anyone being called to account.
This report clearly shows that Ekurhuleni is not only facing financial challenges, but is also experiencing a serious crisis in terms of governance and accountability.
In the Freedom Front Plus’s view, urgent intervention at management level in the Council is required to restore financial discipline, improve revenue collection, eradicate waste and hold the relevant officials accountable.
Ekurhuleni cannot afford to continue down this path heading for disaster.
