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Proposal to write off almost R500 million a stain on Ekurhuleni’s financial management

The Freedom Front Plus (VF Plus) strongly condemns the Ekurhuleni Metro’s proposal to write off R491 150 257,69 in irregular and fruitless expenditure, viewing it as a disgrace to the Metro’s financial management.

While legislation may permit such write-offs in certain cases, the lack of accountability is deeply concerning.

This expenditure spans from 2011 to 2016 and various departments are implicated.

The amount is far more than just a figure on paper. It represents nearly R500 million that could have been used to address the city’s severe pothole crisis – money which has to be borrowed again in the 2025/2026 financial budget. This financial mismanagement is not merely historical; it has a real and ongoing impact on residents.

Most of the wasteful and fruitless expenditure is the result of the inconsistent and improper application of the supply chain management policy, highlighting serious systemic shortcomings.

The Metro’s response – merely prohibiting the involved parties from doing business with the Metro again – is unacceptable. This does not prevent the same violations from occurring elsewhere in the public sector.

The Freedom Front Plus demands that:

• Criminal prosecution takes place where misconduct is evident.
• A national blacklist is used, not just one applicable Ekurhuleni.
• Employees still in service face disciplinary action and receive training in supply chain management policy.

Shockingly, it has taken thirteen years, in some cases, to reach this point. The processes for identifying and addressing financial misconduct should be urgently reformed to ensure faster and more effective outcomes.

Taxpayers deserve the assurance that their money is protected and that those who squander it will be held accountable.

The Freedom Front Plus will continue to fight for transparency, accountability and sound governance in Ekurhuleni.

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