News
City of Ekurhuleni Confronts Ongoing Financial Challenges
The City of Ekurhuleni cannot keep up with Eskom payments. Eskom recently disclosed that the CoE owed them R1.5 billion. As the council failed to address its finances, Action SA raised concerns that CoE might face administration.
Despite the pressing need for service delivery in CoE, the council failed to discuss this matter at its ordinary council meeting on September 28, as previously reported. The DA submitted a motion to discuss finances in the morning, with support from other parties like Action SA. However, the discussion was postponed until later in October.
The motion emphasised the urgent need for a debate on the city’s finances due to the country’s deteriorating economic growth and the impact of severe load-shedding on revenue collection. The discussion was to cover the city’s liquidity of R438 million, debt ratios, and outstanding payments to suppliers and contractors exceeding R3 billion.
Eskom later issued a statement revealing that CoE’s debt was just under R1.5 billion, and the municipal electricity debt in Gauteng continued to rise. Eskom also noted that the City of Tshwane (CoT) and CoE owed Eskom R4.7 billion as of August 31.
Also read: Primrose Resident in Darkness Over Nearly R200k Debt to City
Siyanda Makhubo, ActionSA Ekurhuleni caucus leader, expressed concern about the deteriorating payment patterns by both municipalities, which threatened Eskom’s liquidity and financial sustainability. She accused the council speaker of blocking the motion to protect the MMC of Finance, Nkululeko Dunga, who she blamed for the city’s financial troubles.
ActionSA has written to the council speaker, Nthabiseng Tshivhenga, urging her to urgently call a special council meeting to inform residents of CoE’s financial situation. CoE’s outstanding debts, including the Eskom debt, were disclosed to amount to R4 billion. Failure to meet these obligations risks CoE being placed under administration.
The ANC in Ekurhuleni also expressed concerns about the municipality’s financial state, suggesting that the city was on the brink of bankruptcy. ANC caucus whip Jongizizwe Dlabathi emphasised the severe deterioration in the city’s revenue collection.
In response, Nkululeko Dunga defended CoE, stating that the city did not owe Eskom. He highlighted Eskom’s role as a significant contributor to the city’s revenue and the challenges posed by load-shedding on collection from residents and businesses.
Source: CoE faces further financial woes
Also read:
Picture: X / Collen82241585
Follow us on Google News.
