New MMC gets city’s financial affairs in order

The recently appointed Mayor of Ekurhuleni Nkosindiphile Xhakaza said they are committed to stabilising the city’s finances and enhancing service delivery.

He spoke at a media briefing, joined by the newly appointed MMC of Finance Jongizizwe Dlabathi, on his appointment and service delivery in Ekurhuleni.

Xhakaza said he plans to keep the promises he made when he was elected on April 11.

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“I stand before you to share a story of resilience, dedication, and progress that began when I was elected as mayor.

This journey, though filled with challenges, has been marked by significant strides towards restoring service delivery and rebuilding public trust in our local government.

“When I assumed office, our city was at a critical juncture. Our mandate was clear: to restore political stability, improve services, and rebuild our city’s infrastructure,” said Xhakaza.

He said the appointment of Dlabathi is one of the steps to keeping his promises.

He said that his dedicated team, they are committed to keeping the six key pillars aimed at propelling the city forward, which are:

• Provision of quality, equitable, and sustainable services.

• Repairs and maintenance of infrastructure.

• Rebuilding of the fiscus.

• Investment in critical infrastructure in partnership with the private sector.

• Economic development with a special focus on the Aerotropolis, SMMEs, and job creation.

• Good, ethical, and effective governance.

Xhakaza said the multi-party government will ensure that they turn the city’s finances around and believes with Dlabathi’s expertise the city is heading in the right direction.

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On Dunga being removed

Germiston City News asked him the reason as to why the former Finance MMC Nkululeko Dunga was removed.

“Dunga was fired because of not performing to the job standards. One of the issues was the culture of absenteeism without any clear reason being given.

“We went to Lekgotla of the mayoral committee, but he was absent without an apology. The culture issue happened early in April. In the mayoral war room he was not there,” said Xhakaza.

He further issued a stern warning to members of the executive mayoral council (MMC), vowing to swiftly remove those who do not meet performance standards.

“We have drafted the performance scorecards, which will be signed by all the members, which is aimed at creating accountability amongst MMCs,” said the mayor.

Dlabathi’s focus

Dlabathi discussed the metro’s budget and how much will be allocated to different departments.

He also shared the key priority areas he will focus on, which will be recovering and re-building a strong financial position, supply chain management, and expenditure management, budget management, financial discipline, and improving audit performance.

“The revenue for the 2024/2025 fiscal year is projected to be R60.67b, an increase from the revised budget of R55.56b for 2023/24. This growth is essential to support our ambitious development plans and to ensure the delivery of quality services to our residents.

“On the expenditure side, we have budgeted R60.07b for 2024/25, this includes significant investments in infrastructure, social services, and community development,” said Dlabathi.

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He said the budget reflects their commitment to promoting good governance and ensuring the financial sustainability of the city.

“As we navigate through challenging economic times, the South African economy continues to face several constraints, including slow growth, high unemployment, and fiscal pressures in the post-Covid reality we find ourselves in.

“Municipalities across the country are not immune to these challenges. The financial situation of many towns and cities is strained due to declining revenue generation and increased service delivery expectations.

“This administration is committed to maintaining financial stability while addressing the needs of our residents and driving sustainable urban development,” said Dlabathi

For infrastructure development, R475m has been allocated for road repairs and maintenance, R420 million for upgrading and maintaining stormwater drainage systems, and a continued investment in the maintenance of streetlights and high mast lights to improve safety and visibility.

The Energy Department has been allocated a capital budget of R5.52b, focusing on several key projects, with one of them being Russel Road substation and upgrading the existing 33/6.6kV substation in Germiston with a budget of R694m to provide reliable electricity supply.

The electrification program will be allocated R684.2m, with R215.3m to electrify 2 500 households in informal settlements.

The Roads and Storm Water Department has been allocated R2.636b.

The Water and Sanitation Department has been allocated R590m for key projects including Russel Road reservoir and R30m for a new 30Ml reservoir in Germiston.

The Transport Department has been allocated R353m for the completion of Phase 1A and extending the BRT route into Phase 1B and 1C.

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The Human Settlements Department has been allocated R492.5m to implement various housing programmes.
Dlabathi said this budget is evidence of the city’s commitment to re-building.

“This budget is a testament to our commitment to building a responsive and agile service delivery-orientated city. It addresses immediate needs while laying a strong foundation for future growth and development.

“I call upon all stakeholders to support this budget as we work together to create a better Ekurhuleni for all,” said Dlabathi