The latest assessment report by the Gauteng Provincial Treasury confirms that the Emfuleni Local Municipality is still failing to fulfil its basic financial and governance obligations.
This is despite extraordinary government intervention and debt relief measures since June 2023.
Compliance deteriorated further in the reported period (October to November 2025), from 78% to 76%, seriously jeopardising Emfuleni’s access to further Eskom debt deductions.
Some of Emfuleni’s major failures:
• Eskom debt and maladministration:
Emfuleni paid only R178,5 million of a R332,6 million bill in October 2025, causing outstanding Eskom debt to climb higher than R1,6 billion. This is not a technical error; it is a clear sign of financial recklessness and failure to prioritise essential services.
• Structural bankruptcy:
The 2025/26 interim budget has officially been declared unfunded, while tariffs for electricity, water and sanitation remain non-cost-reflective and no tariff reform is implemented.
• Poor revenue collection:
The collection rate for November 2025 stood at a shocking 69%, well below the minimum required 85%. Credit control measures such as water restrictions and prepaid electricity blocking are inconsistently enforced, encouraging a culture of non-payment.
• Administrative chaos:
Billing and valuation have been plunged into chaos because the billing system and the Council’s approved general valuation roll do not correspond.
• Non-transparent reporting:
Although reports are submitted in terms of the Municipal Finance Management Act (MFMA), critical elements are missing and reporting remains incomplete and non-transparent.
• Misuse of ring-fenced funds
Revenue from water and electricity is not used to pay Eskom and Rand Water first, as required, which is in direct contravention of debt relief conditions. The first year’s debt deduction was approved, but remains unprocessed due to administrative incompetence.
When all these failures are considered together, it is clear that Emfuleni is shooting itself in the foot. Government support is available, but maladministration keeps undermining it.
If urgent remedial action is not taken within 30 days, Emfuleni will be solely to blame for forfeiting further debt relief – with disastrous consequences for service delivery and residents.
