ActionSA Requests Speaker to Grant Special Council Meeting on City’s Financial Collapse

28th September 2023

ActionSA Requests Speaker to Grant Special Council Meeting on City’s Financial Collapse

ActionSA, over the next few days, will write to the Speaker of Council to urgently convene a special council meeting to debate the financial status of the city, which is currently on the precipice of financial ruin.

ActionSA, today, supported an urgent motion to allow the Executive Mayor and Member of the Mayoral Committee responsible for Finance, Cllr Dunga, to respond to the financial health of the City. However, the Speaker chose to wear her EFF hat, and sought to protect her comrade, EFF MMC for Finance, Cllr Dunga and dangerously relegated the financial health of the metro to a negligible issue at the peril of residents.

ActionSA is disheartened and sad to inform residents that the City of Ekurhuleni has been plunged into financial meltdown. This ANC-EFF administration has, in no time, destroyed a sound and stable financial legacy left by the multiparty coalition administration.

It has now become evident that:

· The City had a collection rate of approximately 84%, compared to the budgeted 90%.

· The City's cash-on-hand deteriorated to a 14-day reserve, far from National Treasury's 30-day minimum requirements.

· The City suffered a Moody's downgrade at the end of November 2021, necessitating a R500 million reduction in borrowing that fund capital projects.

Whilst ActionSA was still in government, numerous interventions were made where the City was operating on an unfunded budget, which is, in itself, dangerously precarious at best. We also advocated for implementing a disciplinary board to investigate cases of fruitless and wasteful expenditure, which has now risen by 62% under the current administration.

ActionSA raised concerns that the City has resolved less than 50% of the audit action plan, which highlights a clear lack of appetite to implement solutions necessary to remedy the now dysfunctional municipality.

As a constructive opposition, ActionSA will continue to hold this government to account and do everything in our power to stave off the financial collapse of the City.


Issued by ActionSA COE Caucus Leader,  Siyanda Makhubo