The tabling of the Emfuleni Local Municipality’s annual report, in preparation for the adjustment budget, has made it abundantly clear that there is no solution to get this Municipality out of trouble.
No answers could be provided to the question of how Emfuleni plans to pay its outstanding creditors amounting to R9 billion.
Emfuleni currently owes Eskom R7 billion and Rand Water R1,7 billion.
In addition, the Municipality failed to honour its repayment agreement with Eskom, so, it is at risk of forfeiting the municipal debt relief granted by the National Treasury last year.
The National Treasury has already sent a strongly worded letter to Emfuleni, warning it to get its affairs in order to avoid tabling an unfunded budget for the new financial year for the sixth consecutive time.
The National Treasury also warned that if the dire financial situation persists, the Municipality runs the risk of being dissolved.
Emfuleni has only spent 7% of its national infrastructure grant for the 2023/24 financial year. As a result, the Municipality could receive less funds for the following financial year.
The 2023/24 budget projected an 80% collection of debtors, but the Municipality could only manage to collect 56% of its debt
. It also failed to install a large portion of the projected 90 000 water and power meters at residential premises. At the moment, these premises are not issued with municipal service accounts and are, therefore, not making any payments.
The FF Plus is of the opinion that there is no quick fix to save the bankrupt Emfuleni from its financial predicament.
The only solution is for voters to overthrow the ANC government in Gauteng in the upcoming elections and replace it with a responsible and competent coalition government, with the FF Plus as a governing partner.
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